The Marion daily mirror. (Marion, Ohio) 1892-1912, 1907-11-23
BANKS MAY KEEP
~ Is PER CENT
OF CASH PAID FOR THE ONE.
YEAR CERTIFICATES.
MAY BE USED LIKE BONDS.
The Certificates Can be Deposited with
the Treasury as Security for New
Bank Note Circulation, Up to
Their Par Value.

Washington, Nov 23---An important
announcement of policy was made
Friday by Secretary Cortelyou in re-
gard to the allotment of the new one
year treasury certificates which indi.
Gates that the secretary is prepared to
cut red tape as far as possible and
place the proceeds of the sale of the
certificates promptly at the disposal of
the money market. He proposes to
return TO national banks subscribing
for the certificates as a deposit of
public money 40 per cent. of the cash
paid for them. The remaining % per
cent will go for the time being to
strengthen the cash balance of the
treasury
The banks surrendering this 20 per
cent will not, however. suffer re-
duction In their supply of currency,
for they will be entitled to receive the
par value of the certificates purchased
in now bank note circulation. In or
der to make this transaction immedi-
ately effective the treasury will retain
the certificates purchased by each
bank If IL desires that they be de-
posted with the United States treas
urer as security for circulation, and
will ship the notes at once.
Secretary Cortelyou Is studying the
applications for certificates carefully,
In order TO make the allotments in the
manner which will be most beneficial
TO the monetary situation.
The bids for the Panama per cent.
bonds are being kept sealed until the
time for closing the receipt Of bids.
which is a week from to-day. This
prevents any calculation as to the
amount subscribed for or the prices
offered, but the number of offers is al.
ready sufficient to indicate quite
general response from the banks of
the country.
While the envelopes have not been
examined to determine the source of
the bids, il is believed that they will
come from national banks to larger
extent than the subscriptions for the
one-year certificates because the
Panama bonds, with their low rate of
interest, offer less attraction to priv
ate investors than to national banks,
for whom they carry the privilege of
increasing their circulation. In the
case OF certificates as well as the
bonds, assurances have been received
that large offers will be made next
week when money market conditions
will be better than at present.
j. Pierpont Morgan and George +.
Baker the latter president OF the
First National Bank OF New York City,
arrived here Friday for conference
with Secretary Cortelyou. At 10
O'Clock last night Messrs. Morgan and
Baker, accompanied by Assistant Sec.
retary Bacon. of the state department.
went to the White House to see the
president by appointment. The object
of their visit was not divulged but II
was believed to be in relation TO the
financial situation.
Upon leaving the White House at
1925 p m, after being with the pres.
ident an hour and half Mr.. Morgan
on being asked in regard to the de.
velopments replied that conditions in
New York were reassuring. He said
everything possible was being done to
relieve the money stringency and that
the situation was satisfactory. Mr..
Morgan said that his object In coming
to Washington was to see Secretary
Cortelyou in furtherance of the con.
ference he had with the secretary in
New York last week.