The Birmingham age-herald., 1907-11-19
Government Plans NH Tend to Draw Real Money Out
 of HOardiag
IMPORTATION OF GOLD
 IS N0W UNNECESSARY
Conditions Are Infinitely More Favor. able Than For Several Weeks-A Syndicate May Be Organ
 ized To Take Bonds.

New York, November Naturalization was the prevailing tone in banking cir cles today. as the result of the govern ment plan of relief to the market by the issue of $50,O00000 in Panama bonds and slOO,00O,O00 in one year treasury cer- tifcates.
 The issue of Panama bonds had been counted upon as a probability since It was first referred to some ten days ago. The issue of short term certificates was more of a novelty and as such attracted more discussion. The general opinion in banking circles was that both measures would tend to draw idle money from private hoards and thereby to break tho premium on currency and restore normal conditions in the money market.
 Shut Down On Gold.
 So strong was this feeling that it was understood that gold engagements would practically cease after today. Interna- tional bankers declared that the gold already engaged is eas much as New York can justly take1rom Europe under the strained conditions which prevail there and that to take more will only compel it's return at d later date. The amount already taken or engaged ap- breaches $70000,0oO, which is much more than the most sanguine predicted at the beginning of the movement about three weeks ago It is not considered desirable to force the Bank of England to raise it's discount rate to 8 per cent, as has 
 the German rate any higher than 7is per cent, which it has already reached. If more gold was desired the issue of short term certificates would afford just the sort of security which the Ban'y 9f France has been disposed to iFsist upon in the recent negotiations through MT. MorgHhs house. The shipment of gold 10 New York against deposit of such certificates would parallel very closely tho shipment of Sl5,OoO, GOO made to London at tho time of the Barring panic in 1890 This loan was secured by the deposit with the Bank of France of execntor bonds to the Bank of England by the British gov ernment in exchange stock.
 Short Term Obligations.
 Bonds represent a form of short term obligations. which are issued very fre- quently by the British government The issue of short term obligations has been less frequent with the American govern ment, but bankers declare that they will meet admirably the demands of the pres ent occasion, because they can be taken up and paid for at the expiration of their term from the treasury cash balance, which can then be withdrawn witholp danger from the custody of the national banks.
 An excess of cash will be on deposit in the banks according to all past pre- cedent even if business depression is acute, because after the first fright is over cash accumulates in periods of depression for which there is little call for investment in new enterprises. The response from the public to the offer of new securities is expected to center large ly on the year certificates. The Panama bands, paying only per cent and sell ing at a premium. are expected to go chiefly to the national banks to be used as a basis for circulation If the ex- perience of the popular loan of 1896 is repeated, however, in respect to the cer- tihcates they will be over-subscribed sev- eral times.
 Clouds Disappearing.
 It is declared by bankers that financial and political conditions are infinitely moro favorable at the present time than they were when the gold reserve was almost wrecked and the possibility of d change of money standard was confronting the country. 1t Is their belief, therefore, that subscriptions for the certificates are like ly to be large and to draw out much boarded capital.
 Secretary Cortelyou is counted upon to deposit the proceeds of both classes of securities at once in the national banks where they will be available for the purpose of general circulation. The premium on currency showed signs of weakening today. being quoted at from IF to 21z per cent. Bankers declare that 1t will disappear before bids close on the treasury certificates and the monetary phase of the crisis will then tend to pass away.
 Throughout the day reports circulated with material defniteness that banking house was organizing syndicate for taking over a considerable block of the new treasury issue. the amount being variously stated from s25.0o0,0oo to sl0o,- O00,COO
 Late in the day a member of the firm gave a specific denial to these reports, saving that he knew of no such syndi- cate. either as to the Panama canal bonds or the treasury certificates. He added that no further negotiations were contemplated for securing gold from the Bank of France, but In spite of the de- nial the reports continued to circulate that an organization of financiers was contemplated to take up a portion of the proposed issues. but no confirmation of the reports could be secured.