New-York tribune., 1907-09-01
PRAISES RELIEF PLAN.
Cortelyou,s Ozon, Says National City
CucuIn-N. Y. 6. Bonds.

The monthly circular Of the National City Bank.
issued yesterday, discusses the financial relief plan
announced by Secretary Corteiyou recently. under
which he purposes to deposit government funds il
national banks each week during the crop moving
period. Il also takes up the forthcoming $i09G0tOo
issue of az per cent New York City bonds. The
circular says. in part:
II is understood that Secretary cortelyou's plan
idea, and the result CT patent research and long
renecuoE. Certainly Il marks decided departure
in Treasury hnanclering, the way 10 which was
cleared Dy the Passase OF the AlIish act al TIE &
Secretary in his eIIorts TO eliminate evils of
Treasury accu1nulatlons, intends to make fun use
OF the power conferred by that act b9tn as 10 the
character of government receipts which may be de-
posted win the oaaks and as to the securities
pee tV4ated oui in IorIner issues OF @ ti.is
which may no, be placed directly banks and by
tno idron act ,oiess Its iven iHgiosal TO ba bae
bonus than government securities wnlcn, because s
OF their scarcity and high price. eann4s no" 'e
The Secretary's plan shows an adnlrabile e9ncep-
ton powers conveyed by the AldriGh & act act
1t has the merit OF continuity and removes me w q
certainty that usually overhangs condlonS a. Inf IF
Of the year. Intended to cover pti petiUo ~
several it will no longer be q quesu0n Gt it
eoing TO do Something for the relief of the situass
ton. II is undoubtedly step IN the ev the he
Treasury Will be eliminated as 9ssurDiS h @
during the most trying months 500 o. te p To what ex-
tent the Secretary may distribute p Po6to Se hmseif
has not nxed in his own mind the amount 10 Nc
deposited. A., Soo-otar,, Of the Treas
ury viii be controlled by the state Of the rev revenues ns
and these are are not be eVW suFSbs SO for August only
Si5ee as AGAINST surplus & 5Sf ,anfh lust Closed
nave been Unexpectedly large. ClF ana IN Itb
items show an incrsse OYER e aT Ta account
hearier BY s1oolco and the navy I 6cIas of
sS0ogo On account of pensions anc $''O'''' "
p96hc s1 classes Of expenditures show no In
creasss namely Indians and interest on 3pI u9 puDI
lie debt ocs Il is tn6oS 6o%ever ~ that the heavy
Tor August may result In lighter eA ~ axoected
ing sspe96lf ot his sySn year sV vii show Of
smTnlus as September. 1866, when the excess
aT2Itel assmpion is based upon the fact that while
receipts are s cGing over the same period
year. yet such increases ar as mai Of cor
asgon5nE months a year AT the same tlilf It
IT must 9e nIle mat M tbr Treasury with It's pres
en working balance Of sonnet hing over S1V'rtiI,ze
w9nld on n IL e "a. 9 6oo Of his without npairng its
ability conduct Us STdniaFy Of Ns~ York City
tae by, ;Se treasury Department as sec9rtHo o tS6 p
public deposits, the approacnmg nds ssu becomes OF
f o. NeT iteres These bonds, if they can be pnP t
So c@sed l az nvPstHent PsiGS r viii be The most @ G at
tctixe securities available in the market Iqr T rn
CoiateTsl against United States funds N Yr T
spect to the security OF the inveS.iGHlt
The nanciai standing wealth and and s obg@ @
the nunicpanty na6 The United States
Ges ensE - BnTrau estimated 81 the year s0 o ont
4La t-1te value of the real properly sI4 dI't r1,s
te 1nS y :, New York City was s6t4LG1oOW rms
mount is greaer than the estimated uU@ arv
Of the real property and imiroV eIilfnlS u 70
etare in the Union other than New YORK WIZ ~ ~
exception of PennsylEana ana , a}pTe
The city of New York dnds tsst coIDea,fu aoi be ~
issue tcnds bearing ~ per cent interest," noi ns
eaIIsa of anv lack Of confidence In us sec itls,
hut because its need for funds compes 70 f lssae
a Largo amount OF long term bonds at z uIo "IttI
The demand for this class Of investment u @ ooL.os
&c al low ebb Railroads and other large CoI P'i -
lions which have found themselves ID neeI m oI
funds during the last two or three years lI, ndnS
e1rciaed the issuance of long term pcnHs, Ntcti
could only be SOLD at prices yielding very lE, a,i
i1teres+ return by issuing short term notes. VIZ.
q - of temuoTarIly financing themselves until
Conditions IN the snvestrnent markets improve
The municipality of New York, however, IS "ltI-
o,,t poyger to issue short time Obligations LOT CAPT
tai purposes. and is thus compelled TO enter IRE IRE
,r1eri,et with long security 1he ContIoiieT
OF tie city has stated that the Legislature VII oe
asked 10 grant 70 the city power 70 meet money
market conditions with whatever security Is o@At
adanted 10 the situation. and therefore assd15es
thaf tna forthcoming issue viii DC the only oHes'
ing bearing as high & rate as AZ per cent.