The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-11-18

Washington, Nov. 17-Secretary Cor
telyou tonight made the important an
nouncement that as a means of afford
ing relief to the financial situation the
treasury would issue $4,000 900 of Pan
anna bonds and 500, 900 certificates
of Indebtedness, or so much thereof as
may be necessary. The certificates VIII
run for one year and will bear p,
cent interest.
The secTetary's action in coming 10
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 past
few days when the financial situation
was under consideration.
= Can Be Used by National Banks.
Secretary Cortelyou says that the
Panama bonds viii afford substantial
relief. as the law provides that they
may be used as a basis for additional
national bank circulation. He also
states that the proceeds from the sale
of certificates can be made directly
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 great
est feleL ana result IN Ine most 111lIlle-
date financial returns
The secretary calls attention to the
attractiveness of the bonds and certifi-
Gates as absolutely safe investments.
Secretary Cortelyou adds that these
relief measures will enable him to meet
public expenditures without withdraw
ing for that purpose any appreciable
amount of the public moneys now de-
posted in national banks throughout
the country. Two treasury circulars.
one inviting proposals for the issue of
bonds and the other asking for the GER
tificates, will be sent out under date of
November IS.
Currency Legislation.
In his letter to Secretary Cortelyou
approving the treasury plans. President
Roosevelt states that he has been as
sured that the leaders in congress have
under consideration a currency meas
ure, (which will meet in permanent
fashion the needs of the situation and
which I believe viii be passed at an
early date after congress convenes two
weeks hence"
The president alos calls at
tention TO the fact that what
is needed most at this time is that
the people should realize how funda-
mentally sound business conditions in
this country are and how absurd it is
TO permit themselves 10 get into pam
&c and create a stringency by boarding
their savings instead of trusting per-
fectly sound banks"
Letter to cortelyou.
The presidents letter TO Secretary
CortelyOu follows:
THE White House, Washington, Nov.
Il, 1907.-My Dear Mr.. COrtelyOu: 1
have considered your proposal I ap-
prove the Issue of the $50 000, 900 of Pan
anna bonds which will be Immediately
available as the basis for additional
currency. l also approve the issue of
$lO0, 600 600 or so much as you may find
necessary of $50, 3 per cent Interest
bearing government notes, the proceeds
of the sale of which can be at once de-
posted by you where the greatest need
exists. and especially in the west and
south, where the crops have to be
moved. have assurance that the lead
ers of congress are considering a cur
rency bill which will meet in perma-
nent fashion the needs of the situation,
and which ! believe will be passed at
an early date after congress cOnvenes
two weeks hence.
Business Conditions Sound.
What is most needed Just now is
that our citizens should realize how
fundamentally sound business cOndi-
tions in this country are and how alb
surd it is TO permit themselves to get
into a panic and create a stringency
by boarding their savings instead of
trusting perfectly sound banks. There
is no particle of risk involved in let
ting business take its natural course
and the people can help themselves and
the country most by putting back into
active circulation the money they are
boarding. The banks and trust COM
panies are solvent. There is more cur
rency IN the country today than there
was a month ago, when the supply was
ample. Since then S55.O00O0O in gold
has been imported and the government
has deposited already 500. 000, 000.
These are facts; and l appeal to the
public to cooperate with US In restor-
ing normal business conditions The
government will see that the people do