Waterbury evening Democrat., 1907-11-18
ID ISSUE $15O,000,0OO
Uncle Sam to Aid Nation With Canal Bonds and Certificates.
C0RTELYOU INVITES BIDS.
Roosevelt Says Country Is Fundamen- tally Prosperous, Advises People to Use Normal Good Sense and to Put Back Their Money In Circulation.

U NdSuiilStou, NON. To- - PreSlOen 3 Roosevelt took heroic measures to re s lieve the financial stringency and tt supply funds to move the crops by authorizing the sale of $5OOOO,O0O Pan
 anna canal bonds and S10000O,00( United States treasury notes of indebt edness. The entire $10O,OOO,O0O debt needed
 l The Panama bonds will be used as
 the basis for additional bank note cir !, culation, and the proceeds of the sale of the certificates of indebtedness will , be placed in the national banks, par ticularly in the south and west, to en-
 able the farmers to get the cash neces-
 sary to market their crops.
 In taking this action President Roosevelt has gone farther in the di-
 rection of supreme governmental con-
 tro, without specific authorization
 from congress, than at any previous
 time during his incumbency. His pow
 CT to sell bonds on account of the Pan-
 anna canal is not questioned, but the
 issuance of certificates of indebtedness
 will undoubtedly be characterized as
 revolutionary. These certificates will
 be issued under an act approved June
 13 1893, relating to raising funds for
 the Spanish-American war.
 Apparently congress never intended
 that it should be invoked for any oth-
 CT purpose, although the specific linn
 itation was omitted, The phrasing of
 the act and the fact that authority is
 given to issue certificates of indebted
 ness in separate paragraph furnishes
 technical authority of which the pres
 ident has taken advantage.
 | President Roosevelt in a letter to Secretary Cortelyou approving the lat
 ter's suggestion regarding the bond is-
 sue advises the people to refrain from
 becoming panic stricken. states that
 the prosperity of the country rests
 upon a substantial basis, declares that
 the trust companies and the national
 banks are solvent and urges the people
 to withdraw their funds from the places in which they are boarded and
 place their money in circulation.
 That there will be legislation by con-
 gress which will permanently improve
 the financial condition of the country
 is another assurance given by the president, who declares that the lead CTS in congress have promised to give relief. He states that the bond sale is intended as temporary relief.
 He also calls attention to the fact that the per capita circulation of the | country has increased more than S1O | during the last decade, but even with | this enormous expansion there is not | yet enough money to properly conduct | business operations.
 The bonds and certificates of indebt- | edness will he sold immediately. The bonds will bear per cent interest and must be redeemed in twenty years. The certificates bear per cent interest and must be recalled in one year
 The presidents letter to Secretary COrtelyou. accompanied by a state ment from the latter giving notice to the country of what the government proposes to do. were made public at the White House
 There was much hesitation on the part of the president to sell bonds when the government has S212. .OOO. 900 on deposit in national banks. but he realized that the government cannot these funds at this time without grave danger of precipitating serious commercial disturbances. For more than week the president. Sec retary Cortelyou. Secretary Root and Postmaster General Meyer have had the question of a bond issue under 
 The treasury circular inviting pro- posals for Panama canal bonds reads:
 The secretary of the treasury offers to the public so,0DO.G00 of the bonds of the Panama canal loan authorized by section of the act approved June S 1Sl2 and supplemented by section of the act of Dec. T. I5Os.
 The bonds will bear interest at the rate 1f per cent per annum will be dated Aug. 1. isls and the interest will be paid quarterly on the first days of November, eHA 4aE}. May and August They will oe issued in denominations of ssl. Spl and l-"o of coupon boHtss and of s1o. sla0 sl.- 'o and S9.noo registered bonds. They will 'e redeeInsble in United States gold coin ] lt the pleasure of the United States after en years from the date of their issue and ( yiH be payable thirty years from such 1 late. , They will be exempt from all taxes or luties of the United States as well as rom taxation in any form by or under { tate municipal or Iocs authority. They z VII Dc available t0 uas-I nal hanks as Sc ] uT5fy for circulation notes upon the same s errns as the per cent c01sols of leal- S o wit the senliannual tax upon cfrruIs- ( Ion notes based upon tIle said bonds as [ ecuriry will b. One-forrrti Of re- cen ( um- They will be receIvabIe like aIl [ iher United States t11tis- as security spr a lIbiic dep"sits in national banks q The laW furhSIs tEaefr sale ar Iasz fh-- ! ar and provides that an citizeHs of the a 'nited states shall have equal orpf-tuni- { ? Co subsrrite thareFnr f In pursIaure of GEa above aunnu7ce- c ,sEt tiae seCrstarv7 invites b55s for the ( oE,ts EeTet1FG-e Ess. rih-sd wEfeI1 must 2 2 sEhsui1tea fo ti=fs e5eFarvrleut on TT h=- q re the 8Eh oE NBverzher Is99 EarE bss i 10u11 state the aD81rt 0F hoazs desired ? t5e sEs7zeTiher- UEe--zr C1E-us- a- reg- ? --ers1- tEz p-ice Ee fs wiling ta 1aw and g 1e pace where Ef desires ra make rsv . at tEe trwzsarv oS rE= f -ite1 States sr al the uf5ce oF sv--a r-s r- ths sSszsfz-r trezs-rerz at New T--E .. zirtZo-e. P1Tzss-pzsz B1s-r-- Crsesr- l a L Do1ss. Cf1cfzzz1I. NsE OrSszzz CT Ss- ] q 'rz-czsas- an bE1z z.su8s b.s zxs--<sz. , the secretary of the rrsaszrE- eTvfs5sz ?