The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-11-20
PAY $25,O0O,OOO
FOR CERTIF IIGGAATES
New York Bankers Rush
to TreaSury'S Assistance
in Big Issue.
Money viii Be Deposited
in the Crop Dis
triCtS.

NEW YORK. Nov. 2o.-Twenty-five
million dollars viii be paid by the First
National Bank, J. P. Morgan & Co.,
The City Bank. and several others
to the United States Treasury 70 pay
for an equivalent amount in the new
per cent certificates before the banks
close today. This evidences the conn
dence the big hnanciers Of New York
have in the Administrations plan 70
relieve the currency famine.
Reports from all over the country
say that money in great lots is being
sent to the subtreasury for blocks OF
the S1OC 90. 900 worth Of certificates. The
Treasury officials express assurance
that the issue viii be ovsrsubscribed.
Temporary receipts are being given
and the money viii be sent TO different
parts Of the country There is no inten-
ton Of Withdrawing from circulation
the currency issued in exchange for the
certificates.
Help Crop Districts.
In the cases Of New York banks 1t
Is rot probable that much OF the pur-
chase money Will be left on deposit here
or rede POSTED here. As was stated in
the Official announcement from Wash
iugtou, the greatest need for currency
is felt 10 be in the financial centers Of
the crop dis trlcts. and very likely most
Of the s25, COO. 700 or more paid by New
York banks for the certificates will be
deposited In !-l1s West and Southwest
rather than hare It is the understand
ing. however, that practically all Of the
900 OOO,OO0 which viii be paid in in case
tha entire issue is subscribed VIII be de-
Dosited in banks throughout the cOun-
try. There is no intention, in other
words. OF withdrawing from circulation
the money paid for the certificates
The deposits Of money paid for the
certificates must, OF course, be secured
b. national banks in tlAe same way as
other Government deposits are secured
1t Is around this pound, strangely
enough. that much Of the confusion in
the financial circles regarding csrtin-
Gates centered.
Banks Security.
The procedure is simple enough Banks
will give as security for these deposits
the same class OF security-that is nun
icipaI, railroad, and other bonds ap-
proved by the Treasury Departmsnt-that
they have been giving as security for
tirely. erroneous idea prevailed IN some
quarters yesterday that the certificates
would themselves secure the deposit or
purchase money paid fo- them
Among banks Of this city that VIII
take S5.O0O 600 OF more Of the securities
are those which have assisted Secretary
Cortelvou materially IN every step he
has taken for the relief OF money con-
ditfons since the situation became acute
No official statement regarding the
particular institution concerned was
made yesterday, but that the First Ma
tionaI. the Chase National. the National
CITY. the Hanover, the Bank Of Com
ulerce. and others would be included IN
them was considered a gooI guess.
In Chicago proffers aggregat ng $780,
COO were secured yesterday and the
amount may be quickly increased, to
100000. Cincinnati has subscribed St4O.-
go. st. Louis subscriptions yesterday
aggregated s.. go 600. and the amount win
be increased today.
Small lots from san Francisco TO the
totaled 1850 in small lots.
Whether most Of the applications were
FOR lots Of a million or more or were
from small investors, the department
IS not ready TO state. 1t is the intention
OF the Government to place at least
half the amount IN the hands OF the
people IN small lots with the idea II
bringing out boarded currency.
A large number of bids have been
received for the Panama bonds, but
none of these bids viii be opened until
November 80.