New-York tribune., 1907-11-18
A REMEDY FOR THE
MONEY STRINGENCY.
Plan WADE PUBLIC BY
THE PRESIDENT.
Issues of $50 400 900 Panama Bonds
and 500 900 900 GOCeTn-
ment Notes.
ment Notes.
IFrom The Tribune Bureau.l

Washington, Nov 1.-THE President after a
series of almost continuous consultations with
the Secretary of the Treasury, Secretary Root,
Postmaster General Niger and the Attorney
General has devised and made public tonight a
plan which WILL in his Judgment, completely
remedy the current financial stringency, bring
out of it's hiding places the quantity OF money
which the administration believes Is being
boarded, and provide ample funds for the NOV
Ing of the crops and the transaction Of business
in normal manner
Panama bonds to the amount Of 100000
and Treasury certificates bearing interest at 3
per cent, payable to bearer and TO the amount
of S1OO,OOO,OOO. will be issued Immediately. The
bonds can then be made the basis Of increased
national bank circulation, while the proceeds Of
the certificates will be promptly deposited in the
national bank repositories.
In the course Of letter to Secretary Cor
telyou the President takes occasion to say:
What is most needed Just at present is that
our citizens should realize how fundamentally
sound business conditions in this country are
and how absurd it is to permit themselves to
get into a panic and create a stringency by
boarding their savings instead of trusting per-
/ fectly sound banks
THE PRESIDENTS LETTER.
The Presidents letter in full is as follows:
The White House Washington. Nov. Il
My Dear Mr. Cortelyou: ] have considered
J your proposal. 7 approve the issue of the $50
/ 100000 of Panama bonds, which viii be imme
dtately available the basis for additional
currency. I also approve the issue OF 100000
( OOO, much you may find necessary, 81
! $50 3 per cent interest bearing government
notes the proceeds OF the sale Of which can be
/ az once deposited by you where the greatest
need exists. and especially in the West and
I South, where the crops have to he moved
/ have assurance that the leaders Of the Con
gress are considering a currency bill which will
meet in permanent fashion the needs OF the
situation. and which believe will be passed
at an early date after Congress convenes two
/ weeks hence.
/ What is most needed Just at present IS that
our citizens should realize how fundamentally
/ sound business conditions IN this country
and how absurd II is TO permit themselves TO
! get lnJo a panic and create strlngency oy
boarding their savings instead of trusting per-
/ fecty sound hanks. There is no particle OF risk
/ involved IN letting business take It's natural
I course, and the people can help themselves and
! the country most by putting back into active
| circulation the money they are boarding The
! hanks and trust companies are solvent There
is currency in the country TO-DAY than
there was a month ago. when the supply vas
ample. S55000O00 in gold has been imported
and the government has deposited another S6ti-
O0oOtN These are facts. and I appeal to tho
I
business conditions The government viii
that people do not suffer II only the people
themselves viii act in a normal way Crops
are good and business conditions are sound, and
We should put the money we have into CirCula-
tion in order TO meet the needs of our abound
There is no analogy AT all with the way things
were in 1898 on November 30 of that year
there in the Treasury only S61 100000 in
gold On November II Of this year there was
i'm the Treasury 1904 100000 in gold. Ten years
ago the circulation Der CaDita was S23 2S. u
is ,1fav he
ability Of the government TO back them up and
me fact that not a particle OF risk is involved
therein give the fullest guarantee Of the sound
/ condition Of our Treasury All that our people
have to do now is to go ahead with their normal
business in a normal fashion, and the whole off
/ ficuIty disappears and this end will be achieved
at once If each man viii act as he normally does
act and as the real conditions of the COuntrys
yours. THEODORE ROOSEVELT.
The. Hon George R. Cortelyou. Secretary Of tho
Treasury.
MIR. CORTELYOU'S STATEMENT.
On receipt Of President ROosevelt's letter cf
approval to-day the following statement was
issued by the Secretary of the Treasury:
Tho available cash balance of the Treasury.
amounting To $40 156 431 So is with the ex-
ception OF a small working balance, now on de-
post IN national banks IN every state and ter
ritory in the Union. thus placing II where IL can
serve the needs of the people as far as possible
The Secretary OF the Treasury with the ap-
proval of the President. has announced an issue
Of Panama bonds 10 the extent OF S5O0O0OO0.
He has also, with the approval OF the Pres;-
dent, avaied himself OF certain provisions OF
the law applicable to the transactions OF the
Treasury in times of emergency. These pro
visions are contained in Section 81 OF the act
of June 13. 1898. authorizing the issuance OF
interest bearing certificates Of Indebtedness 10
run for one year. Certificates bearing 5 per
cent interest will be issued TO the extent, IL
necessary, OF S1OOOOOOOO
The Panama bonds Will serve a measure OF
most substantial relief for. among other things.
the law expressly provides that they may be
used basis for additional national bank note
circulation.
The proceeds of the sale Of certificates pro-
vided for under the above section be de-
posted almost simultaneously with their pur-
chase, upon approved security They he
made directly available at points where the
need IL most urSeut. and eSDeciqliv FOR re..
movement of the crops which il properly accel-
Grated VIII give the 7redtesl 4s,--.
the most immediate financial returns The ac-
ceptance of subscriptions by the Secretary OF
the Treasury viii be made with special refer
enCe such
Both the bonds and certificates are attractive
as absolutely safe investments
These measures will, among other things en-
able the Secretary OF the Treasury to meet pub
lie expenditures without Withdrawing that
purpose any appreciable amount Of the public
moneys now deposited in national banks through
out the country.
PANAMA BONDS OFFERED
The Treasury circular inviting proposals fer
Panama Canal bonds reads as follows:
Treasury Department. Office of the Secretary.
Washington. November Is. 1SOI-
The Secretary of the Treasury offers the
public S5OOOOOOO of the bonds OF the Panama
Canal loan authorized by Section 5 OF the act
approved June 2S. 1902. and supplemented BY
Section 1 of the act of December u, 19O5 Both
acts are quoted below.
The bonds will bear interest at the rate of
per cent per annum; viii be dated August 1.
NW T~ TI