The Mena weekly star., 1908-02-06
CDRTHYOU'S s STATEMENT.
Account of Governments Recent Fl. nancial Transactions Transmit
 ted to the Senate.
JUsTIFlEs ISSUE OF NEW SECURITIES
Turning Point of Panic Marked by An. 1puncement by Government of Issue of Panama Bonds and Certificates of lndebtedness-Bds for Canal Bonds A Times Amount Offered.


 Washington, Jan. 30.-In response to a resolution agreed to by the Senate on December 12, 1907, the secretary of the treasury Wednesday transmitted to that body detailed statements concern ing the award of the Panama bonds and three-per-cent certificates, together with recent financial transactions oi the government, and also embodying information as to the general state of the nation's~finances during the closing months of 1907-the period over which the recent financial panic extended.
 Secretary Cortelyou before analyz- ing the crisis and setting forth his official actions in regard to the report, gives a summary of occurrences in the United States financial world from the time he assumed charge, until the special report was compiled.
 The announcement of the United States of the new securities by the treasury" said Mir Cortelyou, marked in some degree the turning point of the panic. No further steps were con sidered necessary except to continue the deposit of public moneys for time where they were available, and early in December 1t became possible to replenish the cash in the treasury by the withdrawal of about s6.000,000 from national banks in New York City This was followed on January 22 by another call for $10,000, ,000 from New York banks. This will be followed soon by call on outside banks based upon local conditions rather than upon a fixed percentage of their holdings of public money"
 Secretary Cortelyou defends the is sue of Panama bonds and treasury cer- tifcates by saying that it was advis- able to take some strong and resolute step which would convince the public, both at home and abroad. that the government was thoroughly alive the situation and determined to give it's aid in every possible legal and proper form.
 Concerning the allotment of the new issue of securities he said:
 "The character of the subscription was such that it was anticipated most Of them would come from national banks. that the two-per.cent bon afforded such privileges to national banks as q basis of note circulation; that there were strong inducements to the banks outside private investors, who would find in the bonds not more than the best form of security paying only two per cent per annums and that it was expected-and this expecta' ton was fnlhlled-thas the bonds would be used chiefly as a basis for additional note circulation and that such circulation would contribute it's share to relieving the acute pressure for currency which existed through out the country Even f there had been no other justification for limit ing subscriptions Co national banks this consideration~-that the bonds would be used to meet the pressure for currency would. tn the 0pinior of the department. have justified an absolute restriction to he awards
 The legal right of the department to make allolments of the bonds and securities to such persons and banks and in such amounts as is might see fit can hardly be called ln question sn view of the fact that the clrcuiar Of fering the Panama bonds contained this distinct provision
 "'The department also reservts the right to reject any or all bids. If deemed to be Co the interests of the United States SO to do
 The total bids for the Panama canal bonds. coontinues the secretary amounted to s2.220. GOA .5S0. or more than 4 times the amount offered. This fact not heretofore made public would