The Springfield herald., 1907-11-22
Canal BONDS
WILL Be SOLD
PROCEEDS ARE TO BE USED Te
RELIEVE THE FINANCIAL
SITUATION.
PRESIDENTS LETTER
COUNTRY PROSPEROUS AND GOV
EMINENT WILL NOT LET
THE PEOPLE SUFFER.

-
Sunday night made the important an
nouncement that as a means of afford
ing relief to the financial situation
the treasury would issue $50,00o,00t
of Panama bonds and $10O,000,000 Ger
tificates of Indebtedness, or SO much
thereof as may be needed. The GER
tificates will run for one year and will
bear three per cent. interest.
The secretary's action in coming tc
the relief of the financial situation
meets with President Roosevelt's
hearty approval, and the plan is the
outcome of the several White House
conferences which have been held
within the last few days when the fl
nancial situation was under discus
sion.
Secretary Cortelyou says that the
Panama bonds will afford substantial
relief as the law provides that they
may be used as basis for additional
national bank circulation. He also
states that the proceeds from the sale
of certificates can be made decidedly
available at points where the need is
most urgent. and especially for the
movement of crops which he says "ii
properly accelerated will give the
greatest relief and result in the most
immediate financial returns" The sec
retary calls attention to the attrac
tiveness of the bonds and certificates
as absolutely safe investments.
The Presidents letter to Secretary
Cortelyou follows:
"The White House, Washington
Nov. 17.-My Dear Mr.. Cortelyou: ]
have considered your proposal. / ap
prove the issue of the $50.000.090 OF
Panama bonds which will be imme
diately available as the basis for ad
ditional currency. l also approve the
issue of $100.000.000, or so much as
you may find necessary, of $50 three
per cent. interest bearing government
notes, the proceeds of the sale OF
which can be at once deposited by
you where the greatest need exists
and especially in the West and South
where the crops have to be moved
81 have assurance that the leaders
Of Congress are considering cur
rency bill which will meet in perma
nent fashion the needs of the situa
ton, and which I believe will be
passed at an early date after Con
gress convenes two weeks hence
what is most needed Just now Is
that our citizens should realize how
fundamentally sound business condi
tions in this country are, and how
absurd 1t is to permit themselves to
get into a panic and create string
ency by boarding their savings in
stead Of trusting perfectly sound
banks.
There is no particle of risk in
volved in letting business take its
natural course. and the people car
help themselves and the country mosi
by putting back into active circula
ton the money they are boarding
The banks and trust companies are
solvent.
There is more currency in the
country today than there was a month
ago, when the supply was ample. Since
then $55 100000 in gold has been i'm
ported and the government has de
posted already $60,000,000.
"These are facts and l appeal tc
the public to cooperate with us In
restoring normal business conditions
The government will see that the peo
pie do not suffer, If the people them
selves will act in a normal way
Crops are good and business con
ditions are sound, and we should put
the money we have into circulation al
once to meet the needs of our abound
ing prosperity. There is no analogy
at all with the way things were in
1893. On November 30th of that yeal
there was in the treasury but s161,
100000 in gold. On November 14th OF
this year there was in the treasury
1904, 100000 in gold. Ten years age
the circulation was $23.23; it is now
1929.
THE steps that you now take, the
ability of the government to back
them up, and the fact that not a
particle of risk is involved therein
give the fullest guarantee of the
sound condition of our people and the
sound conditions of our treasury.
"All that our people have to do now
is to go ahead with their normal bust.
ness in normal fashion and the
whole difficulty disappears; and this
will be achieved if each man will act
as he normally does act, and as the
real conditions of the country's bust.
ness fully warrants his acting.
Sincerely yours,
"PRESIDENT ROOSEVELT"