Arizona republican., 1908-01-30

able as additional bank note circula- tion
 ''The announcement of the new se- curities by the treasury says Mr. CortelyOu, marked in some degree the turning point of the panic. Early in December it became possible to replen- ish the cash in the treasury by the withdrawal of S6,O00,00O from the na- tional banks of New York City. This was followed on January 22 by call for $1O,O00,000. This will be followed by call on outside banks"
 The amount of currency which dis . appeared from circulation from the time of the suspension of the Knicker- booker Trust company until confidence was practically restored it is stated was approximately $296.O0O,0O0. This amount is substantially one-tenth of the entire estimated money circulation of the United States.
 Concerning the allotment of the new issue of securities the report says; Their character was such that it was anticipated that most of the subscrip- tions would come from national banks Since there was a strong inducement to banks outside of private investors even if there had been no other justi-. ficatiOn for limiting the subscriptions to national banks. This consideration that the bonds would be used to meet the pressure for currency, would in the opinion of the department have justi- fled the absolute restriction of the award to the banks.
 Tt was decided in the case of the Panama bonds to make no awards to individuals in excess of $14.00O. It was also decided to accept the highest bids of national banks, for the remainder of the issue, after the minimum allOtt- ments to individuals.
 The total bid for canal bonds" con- tinued the secretary, amounted to &, ,220 .6045S0 or more than forty-f four times the amount offered. This fact, not heretofore announced would have stamped the loan as even more of a success than it was, ii all the bids could have been regarded as made in good faith by responsible parties. An examination showed, however, many were not only speculative in character. but that they were made even in many cases for very large amounts by those personally irresponsible. incapable of having made even the smallest pre- liminary payment. When the awards were made. therefore the bonds were awarded without hesitation to national banks in case the prices offered were 102 Is or higher"
 The amount thus awarded to na- tional banks was S24.299,OO4. The awards made to individuals were linn ited to those whose subscriptions were for S10,000 or less, because such bids had at least the prima facie appear ances of good faith Even upon this basis the payments made after the allotment of the bonds show that a considerable portion of these small bids were speculative. There was less mar gin for speculation in the case of the 3 per cent certificates. They afforded convenient means to the bank at once to increase their circulation. For this reason the secretary thought it proper to announce at an early day that the offers of individuals would no longer be received and it was ultimately de- cided to make no allottments, except to national banks. The total amount of the subscriptions reached s63, ,959.500. The amount issued was only $l5, ,436, 800. all these were of the registered issue Of canal bonds with the understanding that they should be used as a basis for increasing the circulation or to secure public deposits. The certificates were distributed to institutions in at least eighteen states.