The state herald., 1907-11-22
CANAL BONDS
! WILL Be SOLD
PROCEEDS ARE TO BE USED TO
RELIEVE THE FINANCIAL
SITUATION.
PRESIDENTS LETTER
COUNTRY PROSPEROUS AND GOV.
EMINENT WILL NOT LET
THE PEOPLE SUFFER.

Washington.-Secret Cortelyou
Sunday night made the important an
nouncement that as means of afford
ing relief to the financial situation
the treasury would issue s50,0O0,OO0
of Panama bonds and S100.000,000 Ger.
tificates of Indebtedness. or so much
thereof as may be needed. The cer-
tificates will run for one year and will
bear three per cent. interest.
The secretary's action in coming to
the relief of the financial situation
meets with President Roosevelt's
hearty approval, and the plan is the
outcome of the several White House
conferences which have been held
within the last few days when the fl
nancial situation was under discus
sion.
Secretary Cortelyou says that the
Panama bonds will afford substantial
relief as the law provides that they
may be used as basis for additional
national bank circulation. He also
states that the proceeds from the sale
of certificates can be made decidedly
available at points where the need Is
most urgent, and especially for the
movement of crops which he says 'if
properly accelerated will give the
greatest relief and result in the most
immediate financial returns" The sec
retary calls attention to the attrac.
tiveness OF the bonds and certificates
as absolutely safe investments.
The Presidents letter to Secretary
Cortelyou follows:
THE White House. Washington.
Nov. 17.-My Dear Mr.. Cortelyou:
have considered your proposal. | ap.
prove the issue of the s50,O00,0O0 Of
Panama bonds which will be imme.
diately available as the basis for ad.
ditional currency. | also approve the
Issue of $l00.000,000, or so much as
you may find necessary, of $50 three
per cent. interest bearing government
notes, the proceeds OF the sale OF
which can be at once deposited by
you where the greatest need exists.
and especially In the West and South
where the crops have to be moved.
Il have assurance that the leaders
OF Congress are considering cur
rency bill which Will meet In pcrma.
nent fashion the needs OF the situa-
tion, and which believe will be
passed at an early date after Con.
gress convenes two weeks hence.
what is most needed Just now Is
that our citizens should realize how
fundamentally sound business condl-
tions in this country are. and how
absurd II is TO permit themselves to
get into n panic and create n string.
ency by boarding their savings In
stead OF trusting perfectly sound
banks.
There is no particle OF risk In.
VOWED In letting business take its
natural course. and the people can
help themselves and the country most
by putting back into active circula.
ton the money they are boarding.
The banks and trust companies are
solvent
There is more currency in the
country today than there was month
ngo. when the supply was ample. Since
then S65.000.000 In gold has been I'M.
ported and the government has de.
posted already fG0.0O0.000.
These are facts and appeal to
the public TO cooperate with us In
restoring normal business conditions.
Tho government Will see that the peo.
pie do not suffer. II the people them.
selves will act In n normal way.
Crops are good and business con.
ditions are sound, and we should put
the money we have into circulation Mt
once To meet the needs OF our abound.
Ing prosperity. There In no analogy
Mt all with the way things were In
1893. On November 30th of that year
lhorc was In the treasury but siGl..
200 900 In gold. On November iith OF
this year there was In tho treasury
ta0i 100000 In gold. Ten years ago
the circulation was s23.23: II is now
s3323.
The steps that you now take. the
ability Of tho government TO back
them up. and the fact that not n
particle OF risk is involved therein.
civ. tho fullest guarantee Of tho
sound condition Of our people and the
sound conditions OF our treasury.
"Ail thnt our people have To do now
In TO go ahead with their normal bust.
ness In n normal fashion and the
whole difficulty disappears: and this
viii bo achieved II cnch man will act
aa he normally does act. and nH the
real conditions Of the country's bunl.
ness fully warrants his acting.
"sincercly yours.