The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1907-11-29
WITH NATIONAL BANKS
Money Paid for Canal Bonds
Will Be Deposited.
WILL BE OvER-SUBSCRIBED

Believed at the Treasury Department
That Bids for the Bonds Will Exceed
the suppIy-Banks May Soon Re-
sumo Cash Payments.
Washington, Nov 27-There have
been several important developments
IN the plans of the treasury depart
ment for affording relief to the money
market by the issue of new securities.
Secretary Cortelyou stated that Of the
amount paid for the Panama canal
bonds 80 per cent would be deposited
with national banks purchasing such
bonds. All the indications point to
large over-subscription for the bonds.
The bids thus far received number
nearly as many as for the last issue
of Panama bonds, which was over
hundred million dollars. The large
syndicate subscriptions are usually
withheld until the last moment and
nothing is yet known Of the money
value of the bids that have been re-
ceived, but the belief was confidently
expressed at the cabinet meeting that
the loan would be taken several times
over and that the announcement of
this fact would have most stimulat-
ing influence in restoring confidence.
The bids for the bonds will be re-
ceived up to 4:30 on Saturday after
noon and the opening and classified
ton will be Immediately begun. 1t is
not expected that the result will be
known before Sunday evening or Mon
day.
Secretary Cortelyou will pass upon
the bids after they have been CLASH
fed according to the prices bid and
will reserve the right to reject any
bids which are apparently not made
in good faith or which cannot be made
good by the bidders.
An important fact relating to the
one-year treasury certificates is that
already the amount allotted approx
mates s25,000,O0O. OF this sum only
about s3,5OO,OOO has yet been pledged
as security for circulation, but the GER
tificates are being transferred to the
custody Of the United States treas
urer almost as rapidly as the banks
are notified Of their allotments.
To Relieve Situation.
Secretary Cortelyou takes great care
with the allotments and is making
them as far as possible in such way
a m rp1fQvo hn mo Ylya cit,,o
ton and afford basis for the issue of
new bank note circulation where the
situation Is most acute. 1t is the gen.
eral belief in banking circles here that
It will not be necessary to issue the
full amount Of $10O,0O0,O00 which was
authorized
The advices sent to Philadelphia, to
ret m to subscribers cash paid by
them for certificates, indicates that
private individuals making subscrip-
lions will not receive the full amount
subscribed for and may not receive
any certificates at all. If the banks |
of the country generally resume cash
payments next week. as is strongly
expected since the visits of Mr. Nor
gan and Mr.. Forgan, it is anticipated
that there will not be much further
boarding of currency and therefore
not much further necessity for in
creasing the circulation. Already the
amount of new bank note circulation
taken out during November slightly
exceeds $40,000,000, which is beyond
the estimates Of the treasury depart
ment three weeks ago.
The recommendations to be made by
the secretary of the treasury in regard |
to financial legislation are still the |,
subject Of many rumors and question
able reports. 1t is not expected, how
ever, in we'll informed circles that the
secretary will go into great detail
in his currency plans. Consultations
are going on between members of the
cabinet, Speaker Cannon and other
leading members of congress as to
what legislation is desirable and what
is obtainahle. 1t is generally admit
ted that Some form of emergency cir
culation 81 Duld be authorized, but
there is diff renee of opinion as to the
form of the new issues and the rate
OF taxation to be imposed upon them.
The administration is not in favor of
the project for guaranteeing bank de- |
posts proposed by William ]. Bryan.
1t is not considered practicable |
measure at the present time and there |
is strong opposition to the government
giving guaranty for any banking OBJ !,