The Washington herald., 1907-12-07

improvement in the financial situation
has been such in the opinion OF Sec
retary Of the Treasury Cortelyou, that
he has decided TO issue only $25.eo0.0Oo of
the Panama Canal bonds. instead OF 81
Ooo0oe as contemplated two weeks ago.
Mr.. Cortelyou announced Iazc night he
had accepted the recent bids FOR canal
bonds up TO the amount OF s95.OOo.ooo. al
though it was supposed the amount would
be twice as large.
The issue was oversubscribed by mora
than 1900 bidders.
The issue Of canal bonds TO the amount
Of S25,oo9,ooO, although decided upon as a
measure Of relief for the money market.
is only just about as large as the total
expenditure on the canal. which has been
paid out OF current funds Of the Treas
ury.
Expenditures on Canal.
II the government had not paid the
canal expenditures out OF current funds.
as II seemed wise TO do as long as these
funds were ample. 10 bond issue 20 re-
lieve the money market would have been
required The general funds in the
Treasury would. when placed on deposit
in national banks, meet the needs Of the
situation.
The average price Of all the bonds. bids
Tor which have been accepted by the
Secretary Of the Treasury. is I0s.
II was also made known yesterday that
the allotment Of the per cent certif-
Gates OF Indebtedness, which Secretary
Cortelyou stood ready TO issue up 20 the
amount OF SlO0e0O.o0O in order 70 meet
the money crisis. viii not be made more
than SI5,o0o00o. Secretary Cortelyou is
sued the following statement last night:
Mr.. CorteIyOu's Statement.
The Secretary Of the Treasury has ae-
cePted bids for the Panama Canal bonds
70 the amount Of S25.OO.OO The average
price Of 81 the bids accepted is 100. Tn
/ der the terms Of the law and the Secre-
tary's acceptance Of these bids the aIlot-
ment Of bonds TO individuals and institu-
tons viii be confined TO the small sub
/ scriptions from $1,000 down 70 S9o. Tha
amount OF bids from individuals and IN
stitutions which II has been possible to
accept viii, as heretofore. not be large.
The remainder Of the acceptances will
be bids Of national banks The bids ac-
cePted have come from every section OF
the country, and are mostly in small
amounts
The notices OF acceptances will be pre-
pared and mailed TO the successful bid
ders with the least possible delay. The
notices viii state that payments for the
bonds VIII be expected TO be made at tbs
Treasury Of the United States or AT
some subtreasUry, as indicated In the
bid Of the subscriber. within ten days OF
the receipt Of the notice by the sub
| scriber- q In cases where the subscriber
has not indicated the place Of payment
the notices sent will include a request
that the place Of payment be Immediately
made known to the Secretary. All sub
/ Scribers should await receipt Of the notice
/ from the Department before taking any
action respecting payment for the bonds.
Were Largely OversubscrIbed.
--As already announced. the Offering OF
Panama Canal bonds was largely over
subscribed. but the Improvement in busi-
ness conditions following the announce
ment Of recent measures Of relief by the
Treasury Department. IS regarded by the
Secretary as warranting him in limiting
the issue al this time to half the amount
ofTered-namely. s25,OO0Op0. This is almost
exactly the amount OF the disbursements
from the general fund of the Treasury
that have been made during the year on
the Panama Canal account
The allotments of the per cent
certificates viii not exceed $1,000. 600
These have been confined TO national
banks throughout the country, which
were in a position 10 take out at once
additional circulation. this being a
measure designed 10 AFFORD immediate re-
lief, inasmuch as a considerable time
would necessarily elapse before the Pana-
ma Canal bonds could be put on the
market