The Birmingham age-herald., 1907-11-26
Chicago Banker Visits Nash- ingtOn to Urge Resumption
 of OId Conditions
SUBSCRIPTIONS COMING
 INTO TREASURY RAPIDLY
With the Bond and Certificate Issue Soon in the Hands of Bankers the Money Stringency Will
 Pass Into History.

Washington, November 25.-Offers for the Panama bonds and the one-year treasury certificates were still coming to the treasury department this morning, and a feeling of greater confidence in the success of the loans seems to prevail than at any time since their announcement. The news from New York and other money centers, that currency payments would soon be resumed was accepted as evidence that the policy of the treasury had done it's share in the restoration of confidence. While Secretary Cortelyou fully appreciated the fact, in announcing the issue of the certificates that they might become a source of bank-note in fiation to a certain extent, he believes that the character of the certificates will prevent the imitation from assuming dangerous character. It is not considered al the treasury that the certificates them- selves will be used to any considerable extent as currency. X few may be passed back and forth in settlements between banks, where settlements in cash have not been resumed but these would only
 
 cates, and perhaps permit the retirement of those instruments sooner than would otherwise occur.
 The fact that the certificates bear iil- terest and are redeemable within one year are distinguishing marks by which they are considered n differ radically from any form of currency. If they be used to nfiate the currency at all, 1t will be as security for bank note circulation, but this cannot last beyond the one year term of the certificates and it Is believed that if the banks find the circulation coming back upon them for redemption they will retire their notes within the year even though they continue to hold their certifi- catf As an investment
 M Situation Improving.
 Thy situation is so rapidly improving thas 1t is possible that allotments will not be made for the full amount of s100 OOO,- 900 which Secretary Cortelyou announced week ago would be offered to the public 1t is declared by financial experts that even If industrial conditions continue un- favorable, there is little doubt that money will accumulate rapidly in the banks after the currency payments are resumed because there is a lack of inclination to borrow II for new enterprises.
 James B. Forgan. chairman of the Chi cago clearing house, and president of the First National bank of Chicago, had a conference with the President, Secretary Cortelyou, Assistant Secretary Edwards and Treasurer Treat today. MT. Forgan is interested in the movement which has been inaugurated by Secretary Cortei- you looking to the simultaneous resump- tion of cash payments on the part of all banks in the large money centers of the country. Mr. Forgan represented that ourF. I.sta l. lI. sume upon any understanding with the banks in other cities within the next week or ten days at the latest.
 It is believed among the treasury of f1cials that a complete understanding will be arrived at between the banks in New York, Philadelphia, Boston, Balti- more, Cincinnati, Chicago. St. Louis, New Orleans and San Francisco by which there will be a general resump- tion of currency payments within the next few days, and possibly before the close of the present week.
 Big Subscription.
 In addition to the discussion of cash resumption. MT. Forgan left tangible evidence of his visit in a subscription by the Chicago clearing house banks for s2,500,000 of the new one-year cer- tificates. Additional amounts of these certificates are steadily coming to the treasury a security for bank note cir culation. These represent allotments made by Secretary Cortelyou about the middle of last week.
 Subscriptions for the Panama per cent bonds are also arriving in large numbers The subscriptions are so numerous that it is not expected that ii will be possible to open, schedule and classify the bonds before closing the treasury department on Saturday night after the time for subscriptions to expire at noon.
 The daily cash statement of the treasury does not yet show the effect of any considerable payments for the new certificates. This is partly be- cause only 25 per cerit of the face value of The amount sold Is paid into the treasury in cash, while the remaining 75 her cent is left with the banks on deposit.
 Shipping the Cash.
 New York and Chicago are making daily shipments of large sums to the cron moving centers of the west and south and it is confidently believed that t5ese shipments will be continued in increasing amounts until normal con ditions are again reached.
 Although applications and cash de- ,osits for the new treasury certificates ra ha;np received at the treasury in ,ncreasing numbers from individuals s wslI as from national banks. 1t Is ,a.rnsd that no allotments have thus far been made except to banks that desire to use them as basis for cir culation. The declared purpose or Sec ss.ary Cortelyou in issuing the certi- acates was to increase the volume of outstanding currency, and this object, st ts said can best be accomplished through the increased issue oi hatiohai bank notes and Aet ieast, inc efforts of t. Is will be in that dire
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