The midland journal. (Rising Sun, Md.) 1885-1947, 1907-12-06
no ALL0TMENTs
TO INDIVIDUALS
National Banks to Get All the
Certificates.
ONLY $35,OOO,OOO WILL BE ALLOWED.
Secretary Cortelyou Considers the Cr:-
sis in the Money Market Over and Be-
leives the Additional Circulation, Bas-
ed on the Certificates and Panama Ca
nal Bonds, Will Give What Is Needed.

Washington, D. c. Especially The
announcement by Secretary Cortel-
you that further subscriptions to the
one-year Treasury certificates would
not be received is regarded here as,
indicating that the Secretary consid-
ers the crisis in the money market
to be practically over. Official fig
ures have not yet been given out
at the Treasury of the amount of the
certificates allotted.
The amount of the allotments
made, however, is known to be about
$35, 100000, and this is probably the
limit unless strong reasons are pre-
sented from banks which have al
ready made subscriptions why allot-
ments should be made to them. All
individual subscriptions having been
rejected, it is anticipated that nearly
the whole of the 35 100000 allotted
will be used to secure new issues
of banknotes.
AS these issues will be retired
within less than year, they will
not constitute permanent imitation
Of the bank-note circulation.
The effect of the new loans upon
the future of the Treasury resources
and of the money market Is already
receiving attention at the Treasury
and in banking circles. From present
sources of information the amount
nominally added to the cash balances
of the Treasury will be about $751;
100000, of which $50, 100000 will
represent the 2 per cent. Panama
bonds and $35, 900 will represent
the one-year certificates which have
been allotted.
This amount would incl ease the
present nominal balance from about
$241,393,217, where it stood Thurs
day, to little more than 1926, 000,-
000 A small additional amount will
be derived from the premium on the
Panama bonds, but even If this
should average as high as five per
cent, it would amount to only So
100000.
With nominal balance, however,
of more than 1925. 900 900 the Treas
ury will not have anything like that
amount Immediately available. This
Is because of deposits in national
banks and other deposit items. These
items amounted to $234,939,5S9,
leaving an actual working balance OF
$6,463,628. The Secretary has an
nOunced that ninety per cent. OIL Inc
payments for Panama bonds will be
left in the custody of the national
banks purchasing the bonds. and
about rs per cent. OF the payments
for the one-year certificates will be
left with the banks. The effect OF
these changes in the Treasury BAL
ance sheet upon the basis of issues
of both classes of securities. to the
amount of $S5, 900, will be to
increase the amount in banks TO
about 100000, 900, and the work
ing balance to about $22, 100000
This condition of the Treasury
finances will be changed materially
in the spring if Secretary Corteiyou
is able to carry out the program or
retiring a considerable portion OF
the ore-year certificates before ma
turity. He will have no difficulty In
doing this and saving considerable
proportion of the interest to be paid
on them ii the agreements made with
banks to this effect can be carried
out under the conditions Of the
money market existing in the spring.