Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1908-01-30
RESPONDS TO SENATE REsoLu-
TloN BY GIVING DETAILED RE-
PORT OF ISSUE OF PANAMA
BONDS AND CERTIFICATES
SAYS FIRM STEP
WAS IMPERATIVE
GOVERNMENT NEEDED TO SHOW
WORLD 1T REALIZED GRAVITY
OF sITuATioN--PANA BOND
ISSUE SUCCESSFUL

Washington. Jan. 29.-In response
to the resolution agreed to by tha
senate In December the secretary Of
the treasury today transmitted to that
body detailed statements concerning
the award of Panama bonds and
per cent certificates, together with
the recent financial transaction Of the
government and also embodying mfur>
nation as to the general state of tha
nations finance during the closing
months of 1907, the period over whioh
the recent financial panic extended.
Secretary Cortelyou, before analyz.
Ing the crisis and setting forth his offi-
cial actions in regard to It, gives 6
summary Of occurrences in the United
States financial world from the tima
he assumed charge as secretary Of the
treasury until the time the special re.
port was compiled. He states that
the business conditions were becom.
ing unsettled when he became tho
financial member Of the cabinet in
March, 1907, and that various strin-
gencies occurred prior to August,
which were promptly relieved.
cortelyou Defends Bond issue.
Cortelyou defends the issue of Pan.
anna bonds and treasury certificates by
saying 1t was advisable to take some
strong resolute step which would con
vince the public both at home and
abroad, that the government was thoc-
oughly alive to the situation and de-
termined to give it's aid in every pos
s1ble legal and proper form. Concern
Ing the allotment of the new issues OF
securities he says:
"The total bids for Panama bonds
amounted to $2,220,6 ,604,5S0 or more
than forty times the amount offered.
This fact. not heretofore made pub
lie, would have stamped the loan as
even a more remarkable success than
it was If all these bids could have
been regarded as made in good faith
by responsible parties. Examination
Of the bids showed however, that
many of them were not only specula-
tive in character but made in many
cases for very large amounts by those
who were personally irresponsible and
incapable Of having made even the
smallest preliminary payments IL such
payment had been required.
Banks Got "a Millions.
when the awards were made,
therefore, the bonds were awarded
without hesitation to national banks
in those cases where the prices Offer
ed were $1.02B or higher and where
the bid appeared in other respects to
be made in good faith and with full
capacity on the part of the bidder to
execute his contract.
'"The amount thus awarded to the
national banks was $24,99S,040. The
awards made to individuals were linz
n scn Vxr1,o 4, -.
subscribed for were for $4,000 or
less, because such bids had at least a
prima facie appearance of good faith.
Even upon this mode the basis of pay
ments was made after the allotment
portion of these small bids were spec
ulative.
No Speculation In Certificates.
There was less margin for spec-
| ulation in the case Of the per cent
| certificates, because, as the report
says, their terms Of one year did not
allow for any considerable premium
without extinguishing the amount of
the interest. They were issued at par
and this made them Immediately
available as it was not necessary to
secure bids as in the case of the Pau-
anna bonds.
They afforded convenient means
| for the banks to at once increase their
| circulation.
For this reason the secretary of the
treasury thought it proper to an.
nounce at an early date that offers
from individuals would no longer be
| received and it was ultimately decid-
ed to make no allotments except ta
| f,nff ,a1 l..,. H., .