The Cairo bulletin., 1907-11-19
So Strong Is Feeling That Gold En-
gagement Will Practically
Cease From Now On
Approval of West and South for Issue Of Bonds
and Certificates Unanimous--C Can be
Moved Now and That Is Main THING

was the prevailing tone in bankins
circles today over the government
plan of relief to the market by the
isue of $50,Oo0000 in Panama bonds
and $100,000.000 in one year treas
ury certificates.
The issue of Panama bonds hal
been counted upon as a probability
since it was first referred to some
ten days ago. The issue of the short
term certificates was more of a novel
ty and as such attracted more dis.
cussion The general opinion in
banking circles was that both meas.
ures would tend to draw idle money
from private boards and thereby
break the premium on currency and
restore normal conditions in the
money market,
May Stop Gold.
So strong was this feeling that il
was understood that gold engage
ments would practically cease after
today international bankers declar.
ed that the gold already engaged is
as much as New York can Justly take
from Europe under strained condi-
tons winch prevail fhefes and that
to take more viii only compel Its
return at later day,
The amount already taken or en-,
gagged approaches $7o,000,o0o, which
is much more than the most sanguine|
perdicted at the beginning of the
movement three weeks ago 1t is not
considered desirable to force the
Bank of England to raise its discount
rate to eight per cent. as has been
talked of in London, nor to force the
German rate any higher than ~
which it has already reached III
more gold were desired the issue of
short term certificates would afforl
just the sort of security which the
Bank OF France has been disposed to
insist upon in recent negotiations !
through Mr.. Morgan's house. The I
bankers declared the short term OBJ /
legation will meet admirably the de !
mands OF the present occasion, be- /
cause they can be taken up and paid /
for at the exploration of their term /
from the treasury cash balance which I
can then be withdrawn without dan
ger from the custody of the national
banks.
Certificates Favored.
The response from the public to the
offer of the new securities is expected
TO center largely on the one-year GER
tificates. The Panama bonds, paying
only two percent and selling at
premium, are expected to go chiefly
to the national banks to be used as a
basis for circulation. If the exper
ience of the popular loan in 1896 Is
however, in respect TO the
certificates. they will be oversub-
scribed several times. Secretary Car
Isle on that occasion invited the sub
for $1,00O,000 four per cent
coin bonds. payable after 30 years.
There was a grave doubt under the
of decentralization prevail
ing at that time both in the money
market and in the political situation.
whether the subscriptions would be
sufficient to permanently restore the
gold reserve. But the amount sub (,
scribed to cover the 100000, 600 Of =
fered then was $56S, ,269.s5s
Condition Favorable.
II is declared by the bankers that :
the financial and political conditions !,
are infinitely more favorable at the !
present than when the gold reserve
was almost wrecked and the possitil /,
ty of a change OF the money standard !,
vas confronting the country. 1t is
heir belief, therefore. that subscrip- T
ions for the certificates are likely TO y 4,
be large and to draw out much hoard y
ed capital. Secretary Cortelyou is :
,ounted upon to deposit the proceeds !,
rom both classes of securities at once :
in the national banks where they
vill be available for the purpose OF
general circulation The premium on /,
urrency showed signs Of weakening :,
oday. being Quoted at one and half =
o ? and half per cent The bank .
rs declared it will disappear bef1re q
he bids close for the treasury certi- :,
icates and that the monetary phase =
4 the crisis viii then tend to pass :,
way. Late in the day it was report ,
4 that an organization of financfers :.
Fas contemplated to take up por II
ion Of the proposed issues bat no y
confirmation Of the reports could be
ecured.