The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-11-26


lars in Gold Have Relieved the
Financial Tension and Normal
Conditions Will Soon Prevail.
Washington. Nov. 24.--Thc events
eff thc past week III the financial
situation have centcred around the
offer by the government to receive
bids for $50,000,000 in 2 per cent
bonds for Panama canal constrWc-
ton and offers at par for $lO0,000,-
600 in treasury certificates running
enc year at 3 per cent. The an
nouncement of this project by Presi-
dent Roosevelt, in his letter to See
rc!ary Cortelyou, published on Mon
day, has done much to restore nor
neal conditions in the money mark
ct. The premium on currency, while
somewhat obstinate, has been gradu-
ally declining and the rally in the
stock market on Saturday, follow
ing thc visit to Washington of j..
Picrlnnt Morgan and Geo. +. Bak-
sr. indicates that confidence is being.
restored by the manifest cooperation
bctvccn the government and big fin
aicial interests in New York. Some
':Eccrtainty prevailed early in the
week regardin" The terms of sub
Scriptions and aHotments for the
new securities, but doubtful points
have been cleared up from day to
day by the statements of Secretary
Cortelynu and other officials. and the
manner in which offers arc being
received for the new securities indi-
cate that they will probably be over
subscribed. The mail offers from
national banks for the Panama
bonds are very heavy. The envelop-
es will..not be opened until the time
for receiving bids closes on Satur-
day next, but the number Of bids;
received and the declared purpose of
Same of the large New York and
Chicago banks to subscribe with the
purpose of increasing their note is
sues, leaves little doubt in the minds
of bankers and treasury officials that
Tire loan will be covered. The fact
that the one year certificates can be
availed of to secure new bank note
circulation and that such circulation
can be retired within a year, is hav-
lug an effect in drawing offers for
these securities; indeed, Secretary
Cortelyou, in making allotments, is
rejecting many offers which, he does
not think, will tend TO materially
benefit the monetary situation. BY
permitting issues Of bank notes to
the full amount OF the bonds and
certificates taken by national banks
and then redepositing the proceeds
of the sale of the securities to The
amount of rs per cent in the banks,
there is opportunity for increasing
the amount of currency in circula-
ton, by net amount equal to three
quarters of the new security issues.
1t is not expected that the increase
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 certi-
licates are closed at the end Of next
week. The importation of $S1 ,O0O,-
600 in gold, now arrived, Oh the way,
or engaged, adds so greatly TO the
monetary resources of the country
that it is anticipated that 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
permanently the New York reserves
is declared by New York bankers to
he sufficient evidence tlrat every
thin% is being done winch is posi-
bic by New York to aid the banks
throughout the country.
Reports from thc south indicate
THAT the cotton crop is moving with
fair degree Of facility at the pres
ent time and that the deadlock wnich
threatened at the outbreak of the
crisi" has been broken. Til i hon-
ed that ii will soon be possible to
resume cash r:VmentS at all princi