The Birmingham age-herald., 1907-11-22
BOND ISSUE |S
 PROVING POPULAR
Offers Continue to Come In to
 Treasury Department
BIG OFFERS ARE HELD BACK
Bankers Who Want Large Blocks of Bonds and Treasury Certificates Will Hold Back On Their Bids
 Until the Last Moment.

Washington, November 21.-Offers con- tinue to reach the treasury department for Panama bonds and one year treas ury certificates in small lots, but the large offers are not expected until just
 before the date for closing the bids. It is is never customary to receive signed
 offers from large banking houses until
 the last moment. Such houses have two motives for withholding bids: The de- sire to act under market conditions at
 the last possible moment before fixing
 the rate of their bids, and the desire to
 prevent any possible leak in the rate
 which they may have offered. It is un- derstood that the secretary will give
 great care to this matter of making all
 lotments, his determination being to place
 the certificates where they will do the
 most good in the way of bringing about
 a speedy return to normal currency con
 ditions.
 The attitude of the New York ~anks
 in furnishing currency to country cor
 respondents in suc-- amounts as they
 can spare without impairing their re-
 serves unduly has not-been the subject
 of official criticism either at the White
 House or at the treasury department
 It is felt that if criticism lies against
 any institution for hoarding cash It is
 the country banks, rather than those of
 New York. New York banks are known
 to have rejected demands for currency from country banks where they knew that
 the applicants already had a much larger reserve than is required by law and in
 many cases larger than 25 per cent re-
 quired in reserve cities.
 The weekly statement of the New York banks speaks for itself as to the reserve
 held there and indicated the heavy crafts
 which have been met rom country banks
 It is hoped by the administration that the entire policy of hoarding will come
 to end when the government recelveS
 the large amounts of money which are expected from the sale of the Panama bends and the one year certificates. Ar arrangements will be made to return as
 much of this money immediately into the banks as can be spared from the treasury balances.
 AIIotments Begun.
 Announcement was made by Secre- tary Cortelyou this afternoon that al- lotments had already begun of the new one-year treasury certificates for wh ich subscriptions were invited in the CIT
 cular of the treasury department issued on Monday. Allotment of the 2 per cent Panama bonds will not be made, according to the terms of the circular relative to them, until after all bids are submitted at the close of business on November 80.
 Secretary Cortelyou was shut up nearly all day studying the situation and conditions of allotment
 The discretion reserved in his crigi- nal offer of the per cent certificates that S50, ,00O, 900 will be allotted by the secretary in his discretion upon offers of subscriptions addressed to him, has brought great variety of orders and suggestions, among which 1t is some what difficult to choose as to those
 most advantageous to the government and the financial situation.
 The two most essential elements to be considered are the amount of cash required to be paid into the treasury and if national banks taking the cer- tifcates will employ tn em to increase circulation.
 The secretary is almost compelled by the terms of the law under which the certificates are issued to retain some part of the proceeds in the treas Iury, since the law authorizes their issue to meet extraordinary expendi- lures. The nominal cash balance of the treasury stood today at only $S,952, AZ after deducting the amount or puplic money on deposit in national banks. This is obviously below the working requirement. of the treasury and tho