The Oskaloosa herald., 1907-11-21
LOANS LIKELY TO
Be OVERSUBSCR|DED.
CABINET is GRATiFlED BY THE
SUCCESS OF THE MEASURES.
THE TREASURY is CAUTIOUS
Question of Using Certificates as Bank
Reserves Raised-They May
Be Criticised in
Congress.
United Press Dispatcn.

United Press Dispatcn.
Washington, Nov. 20.--The com.
munications which came to the treas
ury department Tuesday, approving
the financial policy adopted by the
president and Secretary Cortelyou,
and the subscriptions which were re-
ceiyed for the Panama bonds and one
year certificates were the subject of
discussion at the meeting of the cabi-
net and, afforded general qualification.
While details regarding subscrip-
tions are not yet being made public,
it seems to be the feeling at the treas
ury that both loans will be oversub-
scribed, as was the case with the pop
ular loan of 500 000, 900 issued by the
Cleveland administration in 1896. The
decline in the stock market Tuesday
is regarded as only a symptom Of hest
tation until the effect of the measure
is proved by the opening of the bids.
Officials Moving Carefully.
Several important questions are be-
ing raised In communications adj
dressed to the treasury but the treas
ury officials are exercising an unusual
amount of care in defining their posi-
ton. One of these questions, upon
which no official information has yet
been given, Is whether the new one
year certificates will be available for
bank reserves. The law on the sub
iect seems to be sufficiently clear, that
they are not available for this pur-
pose, but it is possible that the pres
ence of a few of them in reserves I'M
der present critical conditions would
be winked at, just as in the case Of
clearing house certificates.
A policy of reserve is being pursued
by Comptroller Ridgley, apparently
for the purpose of avoiding apy un-
favorable Impressions among the
bankers or misunderstanding by the
public pending the opening OF bids for
the new, securities. II the certificates
are redeemed at the end of one year,
according to their terms, it is believed
at the treasury that there will be no
difficulty in Withdrawing money from
the banks for the purpose at that time,
because money usually accumulates
rapidly in the banks after the first
furry of crisis has been passed and
as general business and speculation
become curtailed.
May Be Criticised In Congress.
The possibility is attracting some
attention that the issue of the one
year certificates will be criticised in
congress in much the same manner as
was the sale Of bonds to the Morgan
syndicate to protect the gold reserve
in 1895. The fact that Republican
member of the house committee on
banking, Mr.. Prince of Illinois, was
quoted Tuesday as declaring the issue
mot justifiable under existing condi-
tions" is considered symptom of the
attitude which may be taken by few
members of congress- g ees s.e'
The criticism of President Cleve-
lands measures in 1895 went SO far
that a committee was appointed to In
vestigate the contract with J. p. Nor
gan & co, Acertain part of the cSiti-
cisn at that time was directed against
the exclusive nature of the contract.
and this criticism will not lie against
the present offer of securities to the
public unless something occurs in
making the awards which may afford
an opportunity to the critics OF the ad-
ministration.
Many st. Louis Subscriptions.
st. Louis, Nov. 20.-United States
ub-Treasurer Adkins announced
Tuesday afternoon that st. Louis
subscriptions to the new $780,.
100000 issues of government loan cer-
tificates had passed the $2,000.O00
mark. Mr.. Adkins says the number
of applicants for the treasury certif-
Gates is constantly increasing and that
before Saturday the demand from ST.
Louisians alone will probably exceed
81 ,O00, 900.
Confidence in San Francisco.
San Francisco, Nov, 20.-The Unit
ed States sub.treasury in this city
Tuesday received by telegraph $4s2.-
900 for three local banks. Sub-Treas-
urer Ralston has been authorized to
receive offers OF subscriptions to the
three per cent certificates Of indebt-
edness. In banking circles great con.
fidence is expressed in the present
and future situation. Satisfaction with
the financial outlook is also expressed
on the stock exchange, the market al
ready showing much Improvement.
Demand for Currency Reform.
Cincinnati. Nov. 20-At a meeting
of the members of the. chamber Of
commerce of this city Tuesday a res
olution was adopted asking congress
to provide currency which win prove
elastic enough to prevent future recur-
rences of the present financial strin-
gency. The resolution will be sent TO
every commercial body IN the United
States and they will be asked to CO
operate in the movement for better
Il