The Washington herald., 1907-11-18
CoRTELYOU ORDERS CANAL BOND ISSUE
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~ - u LII - - - ANA1 LIN
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fundamentally sound business conditions
in this country are, ard how absurd IL Is
20 permit themselves to get into a panic
and create a stTingency by boarding their
sound banks.
No Risk Involved.
There is no particle of risk involved in
letting business take its natural course.
and the people can help themselves and
the country most by putting back into
active circulation the money they are
boarding. The banks and trust compa-
nies are solvent. There Is more currency
n the country to-day than there was "A
month ago. when the supply WAS ample;
S55.G0900O In gold has been imported, and
the government has deposited another
So. 600 900. These are facts, and / appeal
20 the public 10 cooperate with us In
restoring normal business conditions The
government will see that the people do
viii act In a normal way, Crops are good
and business conditions are sound: and
we should put the money We have into
circulation Ia order 20 meet the needs of
our abounding prosperity.
Gold In Treasury.
There is 10 analogy a all with the way
things We're I'm 1893. On November 20 OF
that year there was in the Treasury but
$6l 0Oo, 600 in gold. on November II Of this
year there was In the Treasury S90i, 900 600
in gold. Ten years ago the circulation
per capita was $Z3.23. II is now S3. y.
The steps that you now take the ability
of the government 10 back them up. and
the fact that not a particle OF risk is
involved therein. give the fullest guaran-
tee OF the SOUND conditions OF our Treas
Ury All that our people have 20 DO now
is 10 go ahead with their normal business
in a normal fashion and the who.s diff
Guilty disappears; and this end VIII be
achieved at once II each man will act rs
he normally does act and as the real con-
ditiOn OF the COuntry's business fully war
rant his now acting Sincerely yours,
THEODORE ROOSEN ELT
Hon George b. Cortelyou.
Secretary of the Treasury.
Statement by Secretary.
This is the statement Of Secretary Cor
telyou. announcing the measures taken
10 relieve the financial situation:
The available cash balance Of the Treas
ury, amounting 10 $240,l56.43l.S5 Is, with
the exception OF a small working bal
ance. now on deposit in national banks IN
every State and Territory IN the Union,
thus placing 1t where 1t can serve the
needs OF the people as far as possible
under existing law.
The Secretary of the Treasury. with the
approval Of the President. has announced
an issue Of Panama bonds to the extent
OF S0g0.OJ0
He has also. with the approval OF the
President availed himself OF certain pro-
visions OF the law applicable 20 the trans
actions of the Treasury IN times OF emcr-
gency These provisions are contained in
section p of the act OF June e lSgE,
authorizing the issuance Of intercst-bear-
ing certificates of Indebtedness 10 run for
one year Certificates bearing 3 per cent
interest Will be- issued 20 the extent. il
necessary. OF Sl0)0co0c
Bonds Guarantee Circulation.
The Panama bonds will serve as a
measure OF most substantial relief. for.
among other things, the law expressly
provides that they may be used as a
basis for additional national bank circu-
iatiOn
The proceeds OF the sale OF certificates
provided for under the above section can
be- deposited almost simultaneously with
their purchase, upon approved security.
They can be made directly available al
points whore the need Is most urgent. and
especially for the movement Of the crops.
which n properly accelerated. VIII give
the greatest relief and result IN the most
immediate iirancial returns The accept
auce OF subscriptions hy the Secretary OF
The Treasury will hc made with special
reference % such use.
Both the bonds and the certificates are
attractive as absolutely safe investments.
These measures viii. among other
things, enable the Secretary OF the Treas
ury 20 meet public expenditures without
Withdrawing for that purpose any appre-
ciable amount OF the public moneys now
deposited In national banks throughout
the country
Proposals Invited.
The Official circular concerning the PAN
anna Canal bond issue IS as follows:
Treasury Department
Office Of the Secretary
Washington. Nov. n 1907
The Secretary OF the Treasury offers 10
the public S50000000 OF the bonds Of the
fanaina canal loan. authorized by section
OF the act approved June =, 1902 and
supplemented hy section I OF the act OF
December p. 1865 Both acts are quoted
below.
The bonds viii bear interest at the rate
OF per cent per annum. will be dated
August i. 1906 and the interest viii De
paid quarterly on the first days Of No
Nttnber. February. May. and August
They Will be issued in denominations of
SO. slice. and $1,000 Of coupon bonds OF
the so. Slo0 $1,000 and $4,000 OF regis
tered bonds. They Will be redeemabIe in
United StatSs gold coin, al the pleasure.
or the United states. after ten years from
the date Of their issue, and viii be paw
able thirty years from such date
Exempt from Taxation.
They will be exempt from all taxes or
duties OF the United States. as well as
from taxation in any form by or under
any State. municipal. or local authority
They viii be available to national banks
as security FOR circulating notes upon the
same terms as the per cent consols Of