Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-11-19
SMALL BIDS PREFERRED
All the New Bonds to Bear Interest
at 2 Per Cent.
REDEEMABLE IN TEN YEARS
To Prevent Fake" Offers q Small
Deposit Will Be Required
of Bidders.

Secretary of the Treasury Cortelyou
gave notice late yesterday afternoon that
he would issue $30OO0,O00 in Panama
canal bonds Bids for ;ie bonds will be
received by him until December ., at 4:"o
pm. Anybody may bid who complies
with the conditions named in the circular.
The bonds will be issued under the
authority of the Spooner act, and will
be the third issue under that law, which
provided for total issue of 100000. 900.
The first issue was for $30.O00,O0O. and
the second for S24WO.00. No significance
should be attached to the issue at this
time, according to Secretary Cortelyou,
other than that the money was needed to
carry on the work Of the canal.
Already the expenses of the canal have
exceeded the amount of the bonds issued
by $2S.OOO.OO but 1t has been possible to
pay the balance out of the current funds
In the Treasury. The working cash of
the Treasury has been reduced to about
SlS,OOo.0OO, owing to the deficit.
The new bonds will be dated November
], 1908. and will mature two years and
three months later than those issued in
l!NS and 1907, which have the uniform
date of August 1, 1906. All bonds will
bear interest at . per cent, and are re-
deemable in ten years, and payable thirty
years after date
Text Of the Circular.
The text Of the bond circular is as fol-
lows:
The Secretary of the Treasury offers
to the public $30.OOO,OOO of the bonds CT
the Panama Canal loan, authorized by
section of the act approved June 2s.
the act of December II. 1905. Both acts
are quoted below:
The bonds will bear interest at the
rate or per cent per annum: will be
dated November 1. 1908, and the inter-
est will be paid quarterly on the first
vember. They will be issued In de-
nominations of $40, 500 and $1,000 Of
coupon bonds, and $40, 500, $1,000 eud
$4,000 of registered bonds. They will
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 well as from taxation in any
form or under state, municipal or local
authority. They will be available to
national banks as security for circulat-
ing notes upon the same terms as the
per cent consols of 1880. to wit:
THE semi annual tax upon circulating
notes, based upon the said bonds as Sc
curity. will be one-fourth of 1 per cert.
They will be receivable, like all other
United States bonds, as security for
public deposits in national banks.
Sale Below Par Forbidden.
''The law forbids their sale at less
than par and provides that all. citizens
of the Bnited' States shall have an equal
opportunity to subscribe therefor, -
I'm pursuance Of the above announce
ment, the Secretary invites bids for the
bonds heretofore described, which must
be submitted to this department OH or
befors TIE 5th of December, 1908, at
80 pm. Each bid should state the
amount of bonds desired by the sub
scriber, whether coupon or registered,
the price he is willing to pay and The
place where he desires to make pay
ment-whether at the Treasury of the
United States, or at the Office of some
one of the assistant treasurers at New
York. Baltimore. Philadelphia, Boston.
Chicago, st. Louis, Cincinnati, New Or
should be accompanied by certified
check, drawn or Endorsed to the order
of the Secretary of the Treasury, equal
in amount to 2 per cent OF the face
value of the bonds desired.
"If the bid is accepted the check will
be collected and the proceeds applied
toward payment for the bonds. If The
bid is rejected the check will be returned
lnuOTSeQ 10 the DluueT All DluS SIlOulO
be addressed to the Secretary of the
Treasury division of loans and currency,
and the envelopes inclOsing them should
be plainly marked, Bids for Panama
Canal Bonds
Upon receipt and classification of the
bids hereby invited the successful bid
ders will be advised of the acceptance of
their bids, and they will be instructed as
to the date upon which payment is de-
sired to be made at the Treasury or some
subtreasury Of the United tSates.
Small Bidders First.
"In considering bids, the bidders offer
ing the highest prices will receive the
first allotment. Of two or more bidders
offering the same price. those asking for
the smaller amounts Of bonds will re-
ceive priority in allotment. The depart
ment reserves the right to permit bid
ders offering the highest prices to in
crease the amount of their purchases.
THE bonds will be dated November /,
1908. and bidders will be required to pay
accrued interest on their bonds from that
date to the date of payment.
THE department also reserves the right
to reject any or all bids, if deemed to be
to the interest of the United States so
to do.
''The bonds will be ready for delivery
upon receipt of payment therefor.
prospective bidders desiring informa-
ton not contained in this circular may
address the Secretary of the Treasury
division of loans and currency, WASH
ington, u. c.. or the assistant treasurers
at Chicago. st. Louis. New Orleans or
San Francisco"