The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-11-29
OUT
CASH BALANCE
eff" Represents the Unknown
Quantity at the Treasury
Department lust Now.
CRISIS CONSIDERED OVER
FUTURE APPEARS TO BOTHER
cORTELYoU.
CRISIS CONSIDERED OVER

Washington. Nov. 2s.-The announce
ment by Secretary Cortelyou last night
that further subscriptions to the one
year treasury certificates would not be
received is regarded here as indicating
that the secretary considers the crisis
in the money market 10 be practically
over. Oh1cial figures have not yet been
given out at the treasury of the
amount of the certificates allotted nor
has ii been stated whether further al
lotments would be made for subscrip-
tions already received. The amount of
the allotments made, however, is said
to be about $50, 600 900. and this is
probably the limit unless strong rea-
sons are presented from banks which
have already made subscriptions why
allotments should be made to them.
All individual subscriptions having
been rejected, it is anticipated that
nearly the whole of the SS5,00O,0OO al
lotted will be used to secure new is
sues of bank notes. As these issues
will be retired within less than year,
they will not constitute a permanent
imitation of the bank note circulation.
Nominal" Cash Balance.
The effect of the new loans upon the
future of the treasury resources and
attention at the treasury and in bank
ing circles. From present sources the
amount nOminally added to the cash
balance of the treasury will be about
sS5, 900 900. of which $4,000, 600 repre-
sents the . per cent Panama bonds,
and S35, 900, 600 will represent the one
year certificates which have been al
lotted. This amount would increase
the present nominal balance from about
~ rN.-ww
a little more than 1925, OOO, 900. A small
additional amount will be derived from
the premium on the Panama bonds,
but even if this should average as high
as per cent. it would amount TO only
81 900. 900.
Working Balance Is S6,463, 62S.
With a nominal balance, however. of
more than 1925, 900, 600. the treasury will
not have anything like that amount
Immediately available. This is be-
cause of deposits in national banks
and other deposit items These items
amounted yesterday 10 1924, 939, $50,
leaving an actual working balance Of
Sc, 463. 62S. The secretary has announced
that 50 per cent of the payments for
Panama bonds will be left in the Gus
tody of the national banks purchasing
the bonds, and about 70 per cent of
lilt Dd1 lllClllo LOI tie OliC- GdI Col III
icates will be left with the banks. The
effect of these changes in the treasury
balance sheet upon the basis Of issues
of both classes of securities to the
amount of $50 900, 600 will be to increase
the amount in banks to about $500. O00,-
900, and the working balance to about
So. 900 900. The increase of S14, GOO coo
I'm the working balance will be due to
the retention in the treasury of S5,000,-
600 OF 10 per cent Of the principal of
the Panama payments and about 49,.
600, 900 or % per cent of the principal
of $35, 600 900 in treasury certificates.
"lf" Equals the Sum Total.
This condition of the treasury
finances will be changed materially in
the spring If Secre tary COrtelyou is
able to carry out the program of re-
firing a considerable portion of the
one-year certificates before maturity.
He will have no difficulty in doing
this and saving a considerable proper
ton of the interest to be paid on them
IF the agreements made with banks TO
this effect can be carried out under the
conditions OF TIE money market exist
ing in the spring. II S30.000000 of the
certificates can be then paid off. the
cash balance viii fall to about 1926, 900, =
600. deposits in banks viii decline by
three-quarters of the amount paid of
Continued on Page 5.