The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1907-11-27
FIN ANCIAL AFFAIRS
Offer of the Government of $3.50, 0OO, GOO
In Bonds and Certificates Had the
Desired Effect.

Washington, Nov. 24.-The events of
the past week in the financial situation
have centered around the offer by the
government to receive bids for $780,
000, 600 in 2 per cent. bonds for Panama
canal construction, and offers at par
for 500, 900. 600 in treasury certificates
running one year at 8 per cent. The
announcement of this project by Presi
dent Roosevelt, in his letter to Secre-
tary Cortelyou, published On Monday,
has done much to restore normal con
ditions in the money market. The pre-
MUM on currency, while somewhat OBJ
s~tinate, has been gradually declining,
and the rally in the stock market on
Saturday, following the visit to Wash
ington of j. Pierpont Morgan and Geo.
F. Baker, indicates that confidence is
being restored by the manifest cooper
alton between the government and big
financial interests in New York. Some
uncertainty prevailed early in the week
regarding the terms of subscriptions
and allotments for the new securities,
but doubtful points have been cleaIed
up from day to day by the statements
of Secretary Cortelyou and other Off
Gals, and the manner in which offers
are being received for the new securi-
ties indicate that they will probably be
oyersubscribed. The mail offers from
national banks for the Panama bonds
are very heavy. The envelopes will
not be opened until the time for re-
ceiving bids closes on Saturday next,
but the number of bids received, and
the declared purpose of some of the
large New York and Chicago banks to
subscribe with the purpose of lncreas-
ing their note issues, leaves little doubt
in the minds of bankers and treasury
officials that the loan will be covered.
The fact that the one-year certificates
can be availed of to secure new bank
note circulation, and that such circula-
ton can be retired within a year, is
having an effect in drawing offers for
these securities; indeed, Secretary Cor
telyou, in making ~allotments, is reject
ing many offers which he does not
think will tend to materially benefit the
llOIlSldl SlIudIloIs ny pSlilliCtlllB 10
sues of bank notes to the full amount
of the bonds and certificates taken by
national banks, and then r~edepositing
the proceeds of the sale of the securi-
ties to the amount of rs per cent. in
the banks, there is opportunity for in
creasing the amount of currency in cir
culation by a net amount equal to
three-quarters of the new security is
sues. 1t is not expected that the in
crease will be so great as this, since
some of the short-term certificates will
be taken by private investors. There
is doubt, also, whether any such in
crease will be needed if the corner is
turned in the monetary pressure when
the bids for the Panama bonds are
opened and offers for the certificates
are closed at the end of next week.
The importation of $81, 000, 900 in gold,
now arrived, on the way or engaged,
adds so greatly to the monetary re-
sources of the country that it is an
ticipated hat there will soon be a
plethora of circulation rather than too
little.
The fact that the gold which has
thus far arrived has not increased per-
manently the New York reserves is de-
clared by New York bankers to be suf-
fcient evidence that everything is be-
ing done which is possible by New
York to aid the banks throughout the
country.
Reports from the South indicate that
the cotton crop is moving with a fair
degree of facility at the present time,
and that the deadlock which threatened
at the outbreak Of the crisis has been
broken. 1t is hoped that it will soon
be possible to resume cash payments at
all principal centers. Bankers from
Chicago, New Orleans and other lead
ing cities declare that they are ready
to resume as soon as New York will
give the signal.