Daily press. [volume] (Newport News, Va.) 1896-current, 1907-11-29
Such q Belief Entertained h
Washington Because Of Sec.
rotary C9Fts|y0u's Action.
s35,oQO,OoO WILL B: ALLOTTED
How the Treasury Stands Now and
What IT'S Condition win Sc After
the Panama Bonds and Certificates
Have Been sold-Now Looking for
eius of Currency.
(Dy Associated I,r,,srn

CBy Associated I,rtss)
WASHINGTON, II. c.. Nov. IS =
The announcement by Secretary Cor.
,ciyou last night. that further sub.
scriptions 10 the one year Treasury
certificates would not be received l.,
regarded here as Indicating that Tn,
Secretary considers the crisis in the
money market practically over. ON.
cal figures have not yst been given
out Mt the Treasury OF the amount
OF the certificates allotted
The amount of allotmcnts made
however, Is about s35 100000 ana this
Is probably the limit. All individual
subscriptions having been. rejected.
II is ANTICIPATED that nearly tho whole
OF the s3500Q.000 allotted will be
used 10 secure new issues of hank
notes As these issues will he re-.
lired within less than a year they
VIII not constitute permanent in
nation o! the bank note circulation.
IN" effect OF the new loans unon
me ihture Of the Treasury resources
anu OF The money .narsc. is already
receivlnE attention ut the Treasury
and in banking circles.
From present "sonrces or inforn,a.
uon' the amount nominally added TO
N"'h psfiduCc Oh Inc treasury
VII be about sS5,0O0,0o0, OF Which
$5oo0o,O0O Will, represent the two
per cent Panama bonds and S35,OOO.-
On1 Will represent the one wear Ger.
tiilcates which have been allotted 81
This amount would Increase In,
present nominal balance from about
S-4l.S93,al7 where II stood yester
day. to little more than 1925 .O00. 900.
a small additional, amount viii be
derived from the premium on the
FaHama bonds. but even Ii this Should
i average rs high as i've per cent. Il
would amount only to $4,000 900.
The Amount Available.
With the nominal balance of moro
Than $325,0Qo,000, the Urea sury Will
not have anything like that amount
Immediately available. This III be
cause of deposits in national banks
and other deposit items. These items
amounted yesterday to $2S4 1896
leaving an actual working balance
ofys6, 463 62S. =
The Secretary has announced that
90 per cent. OF the payments for Pan.
aIna bonds will be left in the Gus
tody OF the national banks purchas
Ing the bonds; and about rs per
cont. OF the payments for the one
year certificates will be left With
the banks. The effect of these
changes in the Treasury balance sheet
upon the basis OF issues of both class
es OF securities 10 the amount OF
Ss5,00O.000. will be to increase tho
amount in banks to about $500, 100000
and the working balance to about
s22 100000. The increase OF $4,000.
600 in the working balance will be
due to the retention in the Treasury
OF S5,000000. or 10 per cent. of the
principal Of tho Panama paymcpta
and about S9,000.0Oa. or % nor cent. of
the principal OF $3a.00O,000 In Treas
ury' certificates. This condition Of
the Treasury finances will be chang
ed materially in the spring If the
secretary is able to carrfy OF the
program of retiring n considerable
potion OF the one Year certificates
before maturity. II S30O0O,G00 Of
tho certificates can be paid off. the
cash balance will fan to about $685.
100000. deposits in banks will de-
cline BY three Quarters OF the amount
paid off or to s2T750O.0O0. and tho
cash balance will fall 10 about sl5.-
100000. ri.
Where tic Loan Comes in.
The loss in The cash balance will
ne due to taking from the Treasury
cash - per cent. OF the amount paid
for the retirement OF the certificates.
1t seems probable that the money
market conditions will be such that
the Secretary wilt feel justified in
calling upon the banks for consider
ably moro cash than COMES 10 them
In payment for the Treasury Ger.
tifcates which are called and sur.
rendered.
It, IS not only considered highly de
slrahiu 10 reduce the deposits in banks
as soon as money market conditions
permit. but II Is believed that there
VIII be no difficulty in doing so. The
Treasury oan reduca those dfmosits
to the neighbofhcod CT 5000, 0OO,06D
in the course of The spring. ii will
then liavo ut command about s1Oo..
100000 as working balance, from
which deposits could be MAIDS from
limo 10 'ne 10 aid in The crop move.
nent in tho autumn, If they were re.
auircd.
The history of previous crlscs has
zhowu That niOuny, -tn,lls IA, nncrrnti.