The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1908-01-29
BIDS
All IMESTKE
BOND ISSUE
!COrteiyOu Sends Senate the
Statement Demanded
Last Month.
REASONS FOR REJECTING
Treasury Chief Urges Legislation
That VIII Adapt Movement
Of Currency Automatically
TO the Requirements of
Business.
REASONS FOR REJECTING

WASHINGTON. Jan. 29.-In re-
Spouse to a resolution agreed to by the
Senate ON December II, 1907, the Sec
rotary of the Treasury today trans
mitted TO that body detailed statements
concerning the award of Panama bonds
and 9 per cent. certificates, together
with recent financial transactions of
the government, and also embodying
information as to the general state of
the nations finances during the closing
months of 19O7-the period over which
the recent financial panic extended.
The report, which is accompanied by
a long letter from Secretary Cortel-
you to the president of the Senate,
embraces a list of depositaries and the
amount of money placed OH deposit
therein at various dates; a list of other
banks, with the mouu of national
deposits and the securities held there
for; statements showing the condition
of banks on August %, 1907, and De-
cember 3, 1907, and the amount of bank
notes outstanding at various periods;
lists of banks and individuals who re-
ceived Panama Canal bonds and lists
III ltlpSG WIZ Dlu lOI INC DOllQS NllnOuL
receiving an allotment; allotments and
subscriptions of 3 per cent. certificates
of Indebtedness; data concerning clear
ing house certificates issued during the
panic and a budget of circulars, press
announcements and correspondence re.
lating to government financial transac-
ions that took place during the period
mentioned in the resolution.
Secretary C~ortelyou, before Analysing
the crisis and setting forth his offlc' :
actions in regard to ii. gives a sum-
mary of occurrences in the United
States financial world from the time
he assumed charge as Secretary of the
Treasury until the time the special 70
port was compiled. He states that
business conditions were becoming uli-
settled when he became financial men,-
Der of the cabinet in March, 1907.
Various s~tringencies occurred prior
to August, which were promptly re-
lieved. A plan of weekly deposits of
government funds in various banks
was begun on August IS. BY October
IA these deposits had reached a total
OF S2S. 900, 000. In October occurred the
stirring events in New York which cul-
minated in the closing of the Knicker-
booker Trust Company and the decision
OF New YORK banks TO issue clearing
house certificates.
The treasury transferred to national
banks within a few days the sum of
$35, 000.0 900, and transmitted to New York
within about three days about S36, 900, 900
in small bills. In New York city alone,
the report shows, clearinghouse GER
tfficates were issued in excess Of $780,
100000. BY the middle of November the
treasury had met the demand for re-
lief to the extent that the working ball
ance was reduced to approximately
$4,000. 900.
IT being apparent that no further de-
posts could safely be made, banks were
permitted to substitute bonds suitable
for savings bank Investments for gov
eminent bonds which were held as Sc
eurity against public deposits. Gov
ernment bonds were thus released A.