The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1907-11-22

" 4
hat treasury certificates for 7
$780, 900, 900 and Panama bonds for :
$4,000, 900 will be issued had an :
immediate effect on the markets 7
4 here today and prices promptly :
moved up. 1t is thought prob 7
ably this will stop the drain of =
gold from this market and OBJ =
yiate the necessity OF further In Z
crease in the Bank Of England's =
4 discount rate.
Washington. Nov. 1s-Secretary Cor
telyOu makes announcement that as q
mean OF affording relief to the fnan
cial situation the treasury will issue
in.adcition to the $50. 600. 900 Of Panama
canal bonds, announced In the evening
papers Of Saturday. 500, 600, 600 certifi-
Gates Of Indebtedness, or SO much there
OF as may be necessary. The certifi-
Gates will run for n year and will
bear 3 per cent. interest.
The law comforting upon the Gee
rotary of the treasury the right to is
" treasury certificates is found in
section 80 Of the Spanish wal revenue
act. approved June Is, 1895. The au-
thOrity was not made use of during the
war, but it's legality in the present sit
the government. The Panama canal
bonds are now in the treasury vaults,
and will be ready for distribution i'm
mediately upon the acceptance of the
bids after Noyember 80. The treasury
certificates will not be printed and the
ink sufficiently dried to admit OF their
being handled for some time, but tenn
porary certificates will be ready for
distribution within a day or so. The
issue al par of treasury certificates
to bring to light practically all h cur
rency that has been withdrawn from
the banks by small depositors during
b last three weeks. Its issue. 1t is
believed, will prove exceptionally at
tractive to the small as well as he
pre- confident the demand for them will
BE unprecedented.
The %secretary's action meets with
President Roosevelt's hearty approval,
and the plan Is the outcome Of the sew
eral White House conferences which
days, when the financial situation was
Under consideration.
Secretary Cortelyou says that the
Panama bonds will afford most sub
stantial relief. as the law provides that
they may be used as a basis for addi-
tional national bank circulation. He
also states that the proceeds from the
sale Of certificates can be made directly
available at points where the need is
most urgent. and especially for the
movement Of crops, which, he says. "if
properly accelerated will give tie great
est relief 4 result in the most inan-
cial returns" The secretary calls at
tention to the at~tractiveness of the
bonds, and certificates as absolutely
safe Investments.
A Currency Measure.
Cortelyou says these relief measures
will enable him to meet the public ex-
penditures without withdrawing for
fHnf yys~yoocN ~ vn.,a n
of public moneys now deposited in ma
tonal banks throughout the country.
Two treasury circulars, one inviting
proposals for the issue OF bonds and
the other asking for the certificates,
viii be sent out under late of today.
In his letter to Cortelyou, approving
the treasury plans. President Roosevelt
states that he has been assured that
the leaders In congress have under con-
sideration o currency measure (Which
will meet In permanent fashion the
needs of the situation, and which, I
believe, will be prepared at an early
date after congress convene two weeks
hence."
The president also calls attention to
what is needed most at this time. saw
Ing that the people should realize how
fundamentally u business condi-
surd it is to permit themselves to get
into q panic and create a stringency nv
boarding their money instead Of trust.
r1ng perfectly sound banks"
The presidents letter to Secretary
Cortelyou follows:
Nov. 10. lso7I;-My Dear Mr.. Corteiyou: i
have have G sSa ers your peEoogposal; Tap.
sa n bonds ond .ss WHICH Il w saa ' 81 ;mm Of Pan IAN:
available. as the basis for additional cur
rency. I also approve the issue OF sioo.-
10000. Or 50 30 much as you may find neces-
government notes. the proceeds Of the
sale Of which can be at once deposited
~ You where the greatest need exists. and
especially IN the west and south. where
the crops have to be moved. 1 lave as
surAnce that the leaders Of congress- are
considering 2 currency bill which viii
OF the situation. which I believe viii he
passed at nm early date after conRress
co:Fenes two weeks hence.
Panic an Absurdity.
What ls most needed Just at present
fundamentally Y business conditions
In this country are. n how absurd ii lie
g permit sra themselves to get into a panic
savings instead OF trusting perfectly somnd
banks: There is no particle Of Fisk in.
v0lved IN letting business take its natural
course and the people can help themselves
and the country most by putting back into
active circulation money they are hoard
ss1nf. The banks and trust Companies are
solvent. There is more currency in the
Il country today Ii there was q month
eEo. when the supply was ample. Fifty
ported and the government has denos,ied
already $4,000, goo. These are facts. and I
appeal to the public to cooperate with US
The government will see that the peonie
a. not suffer. II only the people themselves
VII. act II normal way. Crops are good
= cond:taons art sound. and We shoaid
Il order to meet the needs OF our abounding
prOsperity. There is no analogy at iii
With the way things were in 1893. ON No.
treasury but SiGl .OO0.O0a OF gold. On No.
vember 4 Of this year there was in the
treasury $9o4.00o.00 of gold. Ten years age
at - $S3.23 The steps you now take. the
abilify Of ne government e back them
inYaked therein dye fhe fsiias. ~