Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-01-29
HE ANALYSES THE CRISIS.
Business Conditions Becoming
Unsettled When He Entered
The Cabinet in March.
weekly Deposits Begun--Amount of
Currency That Disappeared from
Circulation, S296, 100000.

washington, Jan. 29.--In response to
resolution agreed to by the senate
on Dec IL. 1907, the secretary of the
treasury today transmitted to that
body detailed statements concerning
The award OF Panama bonds and per
cent certificates, together with recent
information as to the general state OF
the nations finances during the closing
months of 1907-the period over which
the recent financial panic extended.
The report, which is accompanied
by long letter from Secy. Cortelyou
TO the president OF the senate. embrace
es list of repositories and the amount
of money placed on deposit therein In
various dates a list OF other banks
with the amounts Of actual deposits,
and the security held therefor; state
ments showing the condition of banks
on August %, 1907. and Dec. 3, 1907, and
the amount Of bank notes outstanding
at various periods; lists of banks and
individuals who received Panama canal
bonds and lists of those who bid for the
bonds without receiving an allotment
and subscriptions of 3 per cent certifi-
Gates Of Indebtedness; Data concerning
clearing house certificates issued dur
ing the panic and a budget of circu-
lars, press announcements and CORE
spondence relating to government fin
ancial transactions that took place
during the period mentioned in the res
buttons.
Secy. Cortelyou, before analyzing the
crisis and setting forth his official ac
tons in regard to the report, gives
a summary of occurrences in the Unit
al . lo. t,,,.,
he assumed charge until the special
report, gives summary of occurrences
IN the United States financial world
from the time he assumed charge until
the special report was compiled. He
states that business conditions were be-
coming unsettled when he became
financial member of the cabinet in
March. 1907. Various stringencies oc-
Cured prior to August, which We're
promptly relieved. A plan of weekly
deposits OF government funds in var
i0us banks was begun on Aug. IS. BY
Oct. a.. these deposits had reached a
total of sos, 100000. In October occurred
the stirring events in New York which
eliminated In the closing of the Knick-
erbocller Trust company and the de-
cisiOn Of New York banks to issue
clearing house certificates.
GOVERNMENT TRANSFERS.
The treasury transferred to national
banks within n few days the sum of
$4,000. 600 and transmitted to Now
York within three days about $36, 00O,-
600 in small bills. In New York city
alone, the report shows, clearing house
certificates were issued in excess of
100000 BY the middle of November
the treasury had met the demand for
relief to the extent that the working
balance was reduced to approximately
S5,000,000 1t became apparent that no
further deposits could safely be made,
banks We're permitted TO substitute
bonds suitable for savings bank invest
ments for government bonds which
were held as security against public de-
posts. Government bonds were thus
released as additional bank note cir
culation, After the issue of Panama
bonds and one year treasury certih-
Gates, the bank note circulation began
TO Increase until 1t stood on Dec. 81,
$500 lSO,s95, as against s6O7,l1S,742 on
Oct To- On Jan is, 1S90S, the issue
had reached $685., 925,S06
The announcement of the United
States of the new securities by the
treasury" says Mr.. Cortelyou, mark
ed in some degree the turning point OF
the panic. No further steps were con-
sldered necessary, except TO continue
the deposit of public moneys for time
where they were available and early IN
-NNlAAbNA ~ DtA<NihC PbSSAbit W ItpiNl-
sh the cash in the treasury by the
withdrawal of about $6000,o00 from
national banks In New York city. This
was followed on Jan. 20 by another call
tor Sl0,O00,0o0 from New York banks
THIS VIII be followed soon by call
on outside banks based upon local con-
dluons rather than upon a fixed per-
ceniage of their holdings of public
money"
ItTfRpJgNCV IInADTATNT,
The amount of currency which dlsap-
pedreG from circulation from the time
OF the suspension of the Knickerboclt-
III Trust company until confidence was
practically restored In December, is
stated as approximately 1896 900, 900.
This amounted substantially to one
tenth OF the entire estimated money
IN circulation in the United States. The
secretary OF the treasury touched upon
NE gravity of the situation abroad as
Wlll as m this country and gives figures
concerning the export Of merchandise
10 show tho energy with which the
economic resources of the country We're
utNtlod 10 the relief OF the situation
the excess Of exports over imports ris-
lls from Sl,i6i. 40i IN August. 1907, to
'il4Asu6 G5 In December, 1907
DEFENDS BOND ISSUE.
~ A'l9 wa hfl'ilH Wv lHHhf VI ]
Fannmn bonds and treasury certificates
Wy saying that It was advisable TO take
sum- strong and resolutc step which
Nuuld convince the public, both az !
lu'u' ana abroad, that the government |
Nas thoroughly alive 10 the situation |
ana determined To- give It's aid In every |
possible legal and proper form.
'Nhrerning the allotment of the new |
'H.a,s ot securities he says:
lhelr character was such that IL was
uu,lpnted most of the subscriptions
,mNull come from national banks; that |
rs $50 per cent bonds afforded such
InFIeges TO national banks as a basis
vi note circulation; that there We're
ssHunb Inducements 10 the banks out
Iue private investors, who would find |
~ lhe bonds nothing moro than the |
ne9' FORM OF security paying only 2 |
ltr cent per annum; and that II was
o1petlfd-and this expectation was full |
nueu mat the bonds would be used |
ronleHy as basis for additional note |
Itllatlon and that such circulation |
,1h"uld contribute It's share 10 relieving |
p acute pressure OF currency which |
talhled throughout the country. Even |
y hn