The sun., 1907-11-23
Big DEMAND FOR new THREES
CORTELYOU SAYS THEY'RE CO.
ING ALL RIGHT.



The Secretary Of the Treasury stated this
evening that subscriptions to the 3 per
per cent. certificates were being received
in large numbers and that the issue was
already a very successful one In addi-
ton 10 subscriptions from individuals many
OF the national bank depositaries in the
crop moving sections Of the South and
West are availing themselves Of the oppor-
tunity to purchase these certificates. re-
ceive a large portion Of the proceeds as a
deposit upon approved securities and in
crease their circulation to the amount Of
the registered certificates at the discre-
ton OF the Secretary Of the Treasury The
beneficial results OF this increase in circu-
lation will be promptly felt at points where
it will be most helpful and the Government
will be enabled to make its collections and
expenditures in such manner as not 70 he
a disturbing factor in business operations"
National hanks in approved localities
subscribing for the new 5 per cent United
States certificates OF Indebtedness may.
il their subscriptions are accepted. retain
three-qIarters OF the purchase price "a a
deposit Of Federal money. Secretary Cor
;elyou has established this rule. and il
was made known to-day that this is the
only condition attached TO the issue Of the
certificates 20 banks. aside from those which
were stated in the original Treasury cir
cular last Monday; also that there will be
no departure from the rule The balance
Of rs per cent. Of the purchase price is to
be paid into the Treasury in cash.
The cash payment to- the Treasury will
not cause depletion in the volume of
money in circulation, for il will be the policy
Of the Government to return the cash to
the channels of circulation by dsposi,ing
in banks located in parts of the country
which stand especially in need Of funds
to carry on current business The de-
positary banks designated to receive these
deposits will. as a rule. be those which have
already issued hank currency up to the full
limit Of their capital stock For the present
or as long az the money pinch lasts. only
as much Of the cash received for certificates
az is necessary to keep the Treasury work.
ing balance up to a safe limit will be retained
in the Treasury vaults.
A clear statement Of the chances that in
dividual applicants as distinguished from
bankers will have Of receiving allotments
oS the 3 per cent. certificates was made at the
Treasury to-day. Secretary CortelyOu will
not accept subscriptions from private per-
sons unless he il satisfied that they will
not draw the money out of a hank TO pay
| for them. Private subscriptions will he well
| come il the subscribers are persons who in
| tend TO Use boarded funds 70 pay for them.
| The Treasury authorities would like to
| see As much money as possible come out
from its hiding places but will not en-
courage persons to draw on their bank
| accounts unnecessarily at this time.
IL is true that funds withdrawn from
banks by individuals for this purpose could
be returned to circulation by depositing
in national banks to the credit of the United
States. but there would he no assurance
thai the funds would be returned TO the
same banks from which they were with
drawn. The banks would be- obliged TO
furnish bonds for security. and altogether
II was said. there would be a lot OF fuss and
bother. with no good result and possibly
a good deal of real injury 10 the situation.
II is an open secret that individual subscrip-
tions for the new certificates will be honored
only in the raTest instances and that the ag-
gregate Of certificates issued 70 private per-
sons will be very small
Secretary CortelyOu said that many new
applications for certificates had been re-
ceived to-day and that the outlook was
wholly encouraging. IL was explained
this afternoon that the transactions be-
tween the Government and the banks pur-
chasing the new certificates would be ia
cilitated in such n way as 20 cause no de
rangement Of business. As only rs per
cent. of the purchase price is to be paid in
cash the credit for the other three-quarters
will be a mere matter Of bookkeeping, the
banks presumably being ready to put up
promptly their approved State and muni-
cipal and other bonds as security for the
| Government depositOrs. The funds COM
ing into the Treasury on account of the
rs per cent. cash payment will he returned
to circulation as promptly as possible.
Secretary COrtelyou said that his dealings
were with individual bankers. He declined
to say anything more specific in regard 10
the applications of syndicates. IL was to
he inferred. however. from what he did say
that there was no objection to cooperation
between bankers looking TO the purchase
of these securities but that when the final
Transaction occurs IL il to be taken up by
the Treasury with each bank individually
There was a repetition Of the statement
to-day that the certificates are being dis
tributed in large amounts in the West and
the South. where funds are sorely needed
for moving the crops. Secretary Cortelyou
il assured that there is a much better feel
ing in the crop moving centres.
The issue OF the new certificates has NOT
proceeded far enough to show any large
results in increased bank circulation. but
there was a shipment OF approximately
q. 1000, 900 In bank currency from the Treas
ury yesterday. Some Of this was incident
TO the substitution Of State and municipal
bonds ior Government bonds by the banks
under tho plan announced by the Secretary
OF the Treasury and the Comptroller of the
Currency several weeks ago. The ship
msnts to-day were large also, and the tota
since the substitution plan was adopted IL
$50, ,2T2, ,5l2.