Connecticut western news., 1907-11-21
TOlSSUE Sl50,000,000
Uncle Sam to Aid Nation With
Canal Bonds and Certificates.
CORTELYOU INVITES BIDS.
Roosevelt Says Country Is Fund amen
tally Prosperous, Advises People to
Use Normal Good Sense and to Put
Back Their Money In Circulation.

Use Normal GOOD sense ann TO Fut
Back Their Money In Circulation.
Washington, Nov 20. = President
Roosevelt took heroic measures to re-
iieve the financial stringeney and to
supply funds to move the crops by
authorizing the sale of S50,000,O00 Pam
anna canal bonds and $d0O,OO00O0
United States treasury notes Of indebt
edness. The entire S1O0,O0O,O00 debt
certificates will not be issued unless
needed.
The Panama bonds will be used as
the basis for additional bank note cir
culatiOn, and the proceeds of the sale
of the certificates Of Indebtedness will
be placed in the national banks, par
ticularly in the south and west, to en-
able the farmers to get the cash neces-
sary to market their crops.
In taking this action President
Roosevelt has gone farther in the d.
rectiOn of supreme governmental con-
troll, without specific authorization
from congress, than at any previous
time during his incumbency. His pow
er to sell bonds on account of the Pan
anna canal is not questioned, but the
issuance of certificates of Indebtedness
will undoubtedly be characterized as
revolutionary. These certificates VIII
be issued under an act approved June
10, 1893, relating to raising funds for
the Spanish-American war.
Reassures the Public.
into Ia6
that it should be invoked for any 9TH
Ell purpose, although the specific linn
itation was omitted, The phrasing OF
the act and the fact that authority Is
given to issue certificates of indebted
ness in separate paragraph furnishes
technical authority of which the pres
ident has taken advantage
President Roosevelt in a letter to
Secretary Cortelyou approving the lat
ter's suggestion regarding the bond is
sue advises the people to refrain from
becoming panic stricken, states that
the prosperity of the country rests
upon a substantial basis, declares that
the trust companies and the national
banks are solvent and urges the people
to withdraw their funds from the
places in which they are boarded and
place their money in circulation.
That there will be legislation by con.
gress which will permanently improve
the financial condition of the country
Is another assurance given by the
president, who declares that the lead.
ers in congress have promised to give
relief He states that the bond sale
Is intended as temporary relief.
He also calls attention to the fact
that the per capita circulation Of the
country has increased more than SIC
during the last decade, but even with
yet enough money to properly conduct
business operations.
Hesitated to Sell Bonds.
The bonds and certificates of indebt-
edness will be sold Immediately. The
bonds will bear per cent interest and
The certificates bear per cent interest
and must be recalled in one year.
The presidents letter to Secretary
Cortelyou accompanied by a state.
ment from the latter giving notice to
the country of what the government
proposes to do, were made public at
the White House!
There was much hesitation on the
part of the president to sell bonds
when the government has S212,OOO, OO0
on deposit in national banks, but he
realized that the government cannot
withdraw these funds at this time
without grave danger of precipitating
serious commercial disturbances. For
more than a week the president Sec
rotary Certelyou Secretary Root and
Postmaster General Meyer have had
the question of a bond issue under
consideration
The treasury circular inviting pro.
posals for Panama canal bonds reads:
The secretary of the treasury offers to
the public $50, 0O0, 900 of the bonds of the
Panama canal loan authorized by section
of the act approved June Is, 1902 anu
supplemented by section / of the act of
Dec. q, 1905.
The bonds will bear interest at the rate
or per cent per annum will be dated
Aug. 1. 1906, and the interest will be paid
quarterly on the first days of November.
February, May and August. They will
be issued in denominations of $50, 500 and
SoNpoh Sl
600 and $4,000 registered bonds. They will
be redeemable in United States gold coin
at the pleasure of the United States after
ten years from the date of their issue and
will be payable thirty years from such
date.
They will be exempt from all taxes or
duties of the United States as we'll as
from taxation in any form by or under
state, municipal or local authority Thew
will be available to national banks as Sc
curity for circulation notes upon the same
terms as the per cent corsols of 1890
to wit. the semfannual tax upon circula-
ton notes based upon the said bonds as
security will be one-fourth OF l per CEN
fum. They will be receivable like all
OTHER United States bonds, as security for
public deposits in national banks
The law forbids their sale at less than
par and provides that all citizens of the
United States shall have equal opportuni-
ty to subscribe therefor.
In pursuance of the above announce
ment the secretary invites bids for the
bonds heretofore described, which must
be submitted to this department on or be-
fore the soth of November 1907. Each bid