New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-11-16
MORE PANAMA BONDS.
ISSUE OF S5O,00O,OOO.
Dir. Cortelyou'S Nez0 Plan to RelieUe
Money Stringency.
from The Tribune Bureau.l

Washington Nov. 15.-The Secretary of the
Treasury is seriously contemplating the issu-
ance of S50,O0O.OOO in Panama bonds under the
act of Congress authorizing issue for this
purpose of $135,O00.O00 at = per cent.
1t is probable that announcement of the issue
would have been made to-day but for anxiety
on the part of the Secretary lest his course
might be construed by the more timorous as in
dlcative of panicky conditions instead of being
recognized as merely natural step in the pro-
motion of that return of confidence and in
crease of circulating medium which is al
ready so well under way.
Three purposes Treasury officials believe.
would be effected by the issue of a popular
loan Of this character:
First-Persons who have lost confidence in the
banks and in business loans. and who
boarding their funds in safety deposit vaults
and similar places would be afforded an op-
portunity to invest in interest paying Sc
curity which would command their implicit
confidence.
Second-The issue would afford a greatly in
creased supply OF consols to be deposited by the
national banks as security for national bank
circulation
Finally-The working balance of the Treas
ury would thus be increased from a point incon-
venenty low TO abundance, and at a time
when the construction of the Panama Canal ia
constituting the greatest drain the Treasury
has TO meet, as large quantities of specie must
be shipped regularly TO the isthmus
With a view to increasing the working balance
Secretary Cortelyou his recent trip TO New
York withdrew from the national repositories
between S4,5O0OOO and S5OOO0O0 the total be-
ing made UP of small amounts, determined by
the Secretary in each instance only after con-
sultation with the officers of the bank drawn on
To-day the working balance amounted to about
SI,O00.000, and while this causes no anxiety it Is
deemed prudent TO strengthen the balance In
such ways as seem practicable.
Secretary Corteyou has been assured that the
S50.000.0O0 bond issue would find ready takers.
In support of this assurance 1t is pointed out
that the per cents of 1900 have run up in
price from 104 to 109 since the beginning Of the
financial furry.
While in many instances the purchasers OF the
bonds would be private individuals. many Of
them would promptly rent the consols to ma
tonal banks. that they could be used as a
basis Of circulation. Moreover many of the
banks whose reserves are now at hghwater
mark would gladly buy the per cents and de-
posit them in the Treasury basis for further
circulation.
OF the S135. 100000 bond issue originally
authorized only $30OO00O0 has been issued
This was done by Secretary Shaw. so that Sec
retary Corteyou has the authority TO issue
bonds up to S1O5.0OO.OO0. but it is entirely un-
likely that he will issue more than S5O.OOOOOO at
the present time.
When the Panama bonds we're originally au-
thorized Congress forgot to change the law, as
had been done in the OF the last issue OF
. per cents, and the Panama securities could
not he utilized to advantage as a basis for cir
culation. This defect. however. was remedied
at the first session of the 59th Congress- and the
tax so reduced as TO be uniform with that i'm
posed on the 1900 consos.