Daily press. [volume] (Newport News, Va.) 1896-current, 1908-01-30
Secretary Of Treasury Sends Long
Delayed Statement 10 Tho
The United States Senate.
SAYS He FEARED sgbgulAraas
Secretary Of the TtcasurW Explains
to the Senate Why Nasosss aanks
Canal Bond Issue Avodey win.
drawaIs From Banks.
tRy Associated rress,

O'N' ~ Va jan, W -
Secretary Corteiyou's reply to tho
Senate resolution alIng upon him for
n statement covering the action of
HIS department. previous TO and dur.
ing Tho recent financial crisis. wan
presented to the Senate today. Tho
secretary fist summarizes the oper
atiohs OF the treasury for tho past
TOW months. and follows with de-
Jailed statement OF the methods and
reasons for some OF the steps taken.
While tho action of the depart
meht, he says. IN placing large
sums In national banks in New York
VIA subjected 10 some criticism Ii
was amply justified by the conditions
ms they then exsted, and as they
rave becn disclosed in the light OF
subsequent events Tho fact that tho
national banks were oxering them
selves 10 increase circulation. and
'nat the secretary by these now la
SUES placed at thcir command
means OF doing So undoubte,i,y haa
moral eject which tended 10 chsSN
Inc panic and reduce the prarnysyns
ON currency. o. p 2
with "a view TO relieving thls sit.
nation and conteracting the preyrihp,
on currency. which was itaelf
stimulus to boarding, aud which prac-
tically Interrupted exchanges between
mifferent cities, 1t was decided on
November 18th to receive anplIca-
tons for subscriptions for 50ov0 900
IN Panama Canal bonds. under ths
act of June 2S. 1902, and 500 600 600
IN three per cent certificates of I'm
uebsedness, under the act OF June
2s, 1902. and $10OOOo,0Oo in three ,,sr
cent. certificates or indebtedness uD-
der the act OF June II. 1905. One Of
me direct effects of these Issues was
10 AFFORD the banks the means on in
creasing their circulation.
Wanted to Avoid Bank Withdrawals
After careful analysis of the bldA
received, tho conclusion wa, reached
By the department that IL bids worr
awarded 10 individuals In large sums
IL would have tendency TO cause
sun further Withdrawals of money
from the savings banks. which usp-
any carry relatively small reserves
In currency. and in case of heavy
demands upon them would have been
compelled To draw upon national
banks and trust companies It was.
therefore, decided in the case OF bhs
fanama bonds TO make no awards
10 individuals In excess of 10000
~ was also decided TO accept tho
highest bids Of national bankers FOR
me remainder of tho issue qftor these
minimum allotments to individuals.
The total bids for tho Panama
Canal bonds amounted to s2,22o.604-
nbV, or more than "a times the anl-
ouht offered This Fact, not hereto
iore made public, would have stamp
ed the loan as moro rcmarkabie
success than it was, IL all tho bids
could have been taken az made in
good faith. by responsible parties,
Examination of the bids show. how
ever, that many of them were not
only speculative In character. hut
mat they were made In many cases
Tor very large amounts by those whu
were personally irresponsible and in-
capable OF having made even the
smallest preliminary payment, IL such
payment had been required When
me awards were made, therefore she
bonds were awarded without hesita-
t'on to national banks In thoss casea
where tho prices offered were 1929
or higher, and where tho bid MP
peared in other respects to no ,naJ9
In coed faith and with full capacity
on the part Of the bidder 10 esecnta
his contract, The amount thus
awarded TO national banks was s2i,.
a9S.0iO.