The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-11-25
FINANCIAL SITUATION.
Bonds Offered by Government Are EaE-
erly Taken by Banking Institutions.

WASHINGTON, ID. c, November a.
The events of the past week in the
financial situation have centred around
the offer at par for sloO,o0o,o0o
bids for s5o.000,00O of . per cent bond 5
for Panama Canal construction. and md
the offer at par Nalus o, rnnine one
year at 8 per cent. The announce men,
OF this project by President Rooseyeit
in his letter to Secretary Cortelyou
published on Monday. has done much
money market.
The premium on currency, while
somewhat obstinate has been gradually
declining. and the rally in the stock
market on Saturday following the visit
to Washington of ]. Pierpont Morgan
and George F. Baker indicates that
confidence is being restored by the
manifest cooperation between the
in New York. Some uncertainty pre-
vailed early in the week regarding
the terms of subscription and allot-
lnents for the new securities. but
doubtful points have been cleared up
from day to dav by the statements Of
Secretary Cortelyou and other officials
and the manner In which offers are
beng received for the new securities
indicate that they will probably be
over-subscribed.
Many Offers for Bonds.
The mail offers from national banks
for the Panama bonds are very heavy.
hS EHSSloPsS VIII not DC opened I'M
Ill the time for receiving bids closes
On Saturday next but the number of
bids received and the declared purpose
Of some of the large New York and
Chicago banks to subscribe, with the
purpose of increasing their note circu-
lauon, leave little doubt in the minds
of bankers and Treasury officials that
the loan will-be covered.
The fact that the one-year certifi-
Gates can be availed of to secure new
bank note circulation. and that such
circulation can be retired within a
year, is having an effect in drawing
offers for these securities. Indeed
Secretary cortelyou. in making ailot-
n,ents. is rejecting many offers which
he does not think will tend to materi-
ally benefit the monetary situation.
By permitting issues of bank notes
to the fun amount of the bonds and
certincates taken by national banks
and then redepositins the proceeds of
I, me sale OF the securities to the a mount
81 seventy tive per cent. in the banks,
there is opportunity for Increasing the
amount OF currency in circulation by
net amount equal to three qua ters
OF the new security issues. 1t is not
eSpected that the increase will be so
great as this since some OF the short
term certificates viii be taken by pri-
waite investors. There is doubt also
Nhether any such increase will be
meeaea II the corner is turned in the
monetary pressure when the bids for
me Panama bonds are opened and Of
I ffsrs for the certificates are closed at
Sthe end of next week.
The Importation of s75,ooo,ooo gold
n9w arrived. on the way or engaged.
.adds SO greatly to the monetary re- .
sources OF the country it is anticipated
that tinu, there viii soon be a plethora Of
circulation rather than too little.
8, Gold Pouring In
The fact that the gold. which has
thus far arrived. has not increased
permanently the New York reserves is
aesffared by New York bankers to be
+. being done which is possible by New
! York 70 aid the banks throughout the
!; Reports from the South Indicate tina,
the cotton crop Is moving with a fair
decree of facility AT the present time
and that the deadlock which threatened
:hroken.
II is toped that it will soon be pos.
sible to. resume cash navmerts az ri
PRINCIPAL centres. Bankers fror1
Chicaro. New Orleans and other lead,
Ing cities declare that thew are ready
20 reFune as soon as New York will
give the signal