Los Angeles herald., 1907-11-21
BANKS WAIT
TOPURCHASE
SECURITIES
Institutions Anxious to Have Indvid.
uaIs Buy Government Bonds
and Put Hoarded Money
Into Circulation
By Associated Press.

By Associated Press
NEW YORK, Nov 2O.-The govern
ment's issue of $1O0,OOO,0OO in treasury
certificates of Indebtedness continued
today to engross the attention of New
York bankers, who apparently have not
reached definite decision as to the
course they shall pursue.
The subscriptions so far received at
the local subtreasury seem to indicate
that the larger banks In this city are
temporarily Withholding their offers of
purchases.
The subtreasury officials are not dis
posed to make public the amount OF
subscriptions received there during the
past three days, saying they are merely
acting as transmitting agents for the
treasury department at Washin gton, to
which point the offers are being for
warded as fast as they come in.
The fact that the banks are holding
off for the time being has led to the
more or less definite report that the
heads of the larger banks are desirous
of obtaining some sort of assurance
from Washington that the money paid
out here for the purchase of the new
securities will be left on deposit in
local institutions.
Currency at Premium
The currency premium varied be-
tween IN and ~ during most of the
days negotiations with some transact
tions as high as 8 per cent With the
price of currency ruling at these figures
it was said the bankers could not see
their way clear to purchase the GER
tificates of Indebtedness under any
other arrangement than the retention
of the purchase money on deposit in
this city.
The money shipments from New York
to the interior have been quite heavy
recently and the banks here are anxious
to continue this means of assistanc to
the general financial situation.
The advance in the price of currency
today is attributed to the demands from
the interior for pay roll purposes. The
calls came yesterday from New Eng
land, but today they were more general
and came in from nearly every section
of the country. The approach of the
week end always enliVenS the demand
for ready money.
There has been absolutely no indica-
ton as yet of a syndicate bid for the
treasury certificates forthcoming from
the associated banks of this city, as has
been intimated since Monday. unless it
be the fact that several large loans
were called in today.
Expect Associated Bid
The revival of the reports today OF
the possibility of a favorable outcome
to the negotiations of an American loan
in France with the treasury certificates
as basis has strengthened the rumor
of an associated bid from New York
bankers, the government securities
when obtained to be so arranged that
they may be considered as collateral
for gold loans under the rules of the
Bank of France.
Some of the New York banks are
said to be holding off in the matter of
subscriptions so as to give the small
Investors with boarded savings a
chance to put in their claims and thus
draw into circulation the money for
which the certificates were largely de-
signed. Nearly all of the larger banks
here have received orders from GUS
toners to make purchases of certiti-
Gates for their account. These pur-
chases are to be made out of deposits
already in hand. however, and are not
bringing new money into the market.