The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-11-19
APPROVED
IN WALL Street.
Canal Bonds and Certificates
of Indebtedness Expected to
Have Desired Results.
SYNDICATE BEING FORMED
HENRY cLEWS FILES DISSENT
ING OPINION.
SYNDICATE BEING FORMED

New York, Nov. dissatisfaction was
general in banking circles today be-
cause of the governments plan of re-
lief to the market by the issue of $50,
600, 900 in Panama bonds and 500, 000.-
900 in one year treasury certificates.
The issue of short term certificates was
more of a novelty and as such attract
ed more discussion.
The general opinion was that both
measures would tend to draw idle mon
ey from private boards and thereby
break the premium on currency and re-
store normal conditions in the money
market
Ends Gold Importations.
10 strong was this feeling that it was
understood that gold engagements
would practically cease after today.
International bankers declared that
the gold already engaged is as much
as New York can justly take from Eu-
rope under the strained conditions
which prevail there and to take more
will only compel its return at a later
date. 1t is not considered desirable to
force the Bank of England to raise its
discount rate to per cent, as has
been talked Of in London. nor to force
the German rate any higher than ~
per cent, which it has already reached
If more gold were desired the issue of
short term certificates would afford
just the sort of security which the
Bank of France has been disposed to
insist upon i'm the recent negotiations
through Mr.. MOrgan's house. The ship
ment of gold to New York against the
deposit of such certificates would par
allel very closely the shipments of SIS
mn 70 I af inn If
the Barring panic in 1890
VIII Meet All Demands.
This loan was secured by the de-
pOsit with the Bank of France of eX-
chequer bonds issued to the Bank Of
England by the British government in
exchange for national debt stock. Ex-
chequer bonds represent a form of
short term obligation which is, issued
very frequently b. the British govern
ment The issue of short term obi
cations has been less frequent with
the American government, but bankers
declare that they will meet admirably
the demands of the present occasion,
because they can be taken up and paid
for at the expiration of their terms
from the treasury cash balance, which
can then be withdrawn without danger
from the custody of the national banks.
An excess Of cash will be on deposit in
the banks, according to all past prece-
dent, even if business depression is
acute. because after the first fright is
over cash accumulates in periods OF
depression for which there is little
call for investment in new enterprises.
Bonds Will Go to Banks.
The response from the public to the
offer of new securities is expected to
center largely on one-yeaT certificates.
The Panama bonds, paying only , per
cent and selling at a premium, are eX-
pected to go chiefly to the national
banks to be used as a basis for circu-
latiOn. If the experience of the pOpu-
lar loan of 1896 is repeated, however, in
respect to the certificates, they will be
over-subscribed several times. SecTe-
tary Carlisle on that occasion invited
subscriptions for 100000. coo of 4 per
cent coin bonds payable after thirty
years. There was grave doubt, under
the conditions of decentralization pre-
vailing at that time, both in the mon
ey market and in the political situa-
ton whether the subscriptions would
be sufficient to permanently restore the
gold reserve. in anticipation of the
difficulty Mr. Morgan organized a syn
dictate to bid for the entire amount of
the bonds and eventually obtained
about one-third, at his price, of the
issue. The number OF subscriptions of
a bona fide character was 1910, and the
amount subscribed to cover the $780,
600. 900 offered was $50, 269 $50. Subscrip-
tions at higher figures than Mr.. Nor
gan's were submitted q. for S66, 7SS, $50,
and, barring defaults for trifiing sums,
bonds for this amount were distributed
I'm small lots throughout the country.
Proceeds to Go to the Banks.
It is declared by bankers that finan-
ciaI and political conditions are in
fnitaly more favorable at the present
time than they were when the gold re
serve was almost wrecked and the pos
sibility of a change of money standard
was confronting the country. 1t is be-
lieved. therefore, that subscriptions Off
the certificates are likely to be large
and to draw out much boarded CAPT
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