Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-01-29
ISSUE kANY TINES
OVER SUBSCRIBED
Some of Bidders For Panama
Bonds Were Spectators With
out Financial Backing
coRTELvou ANSWERS CRITICS
Secretary Of the Treasury Submits to
Senate Report on Panama Bonds and
8 Per Cent Certifcates-Says No
Partially Was shown-6anks Give
Preference Because Responsible.

Washington, Jan. 29.-1n response to
the resolution agreed to by the senate
in December, the secretary of the
treasury today transmitted to thas
body detailed statements concerning
the award of Panama bonds and per
cent certificates together with the re-
cent financial transactions of the gov
ernment, and also embodying inform
alton the general state of the ma
tion's finances during the closing
months of 1907, the period over which
the recent financial panic extended.
Cortelyou, before analyzing the cri-
sis and setting; forth his official actions
in regard to it, gives a summary OF
occurrences in the United States fn-
ancial world from the time he as
sumed charge as secretary of the
treasury until the time the special re-
port was compiled. He states that
the business conditions were becoming
unsettled when he became the financial
member of the cabinet in March, 1907.
Various stringencies occurred prior to
August, which were promptly re-
lieved.
Cortelyou defends the issue of Pan
anna bonds and treasury certificates
by saying it, was advisable to take
some strong, resolute step which would
convince the public, both at home and
abroad. that. the government was thor
oughly alive to the situation and de-
termined to give its aid in every pos
sible legal and proper form. Con-
cerning the allotment of the new issue
of securities, he says:
Issue Greatly Oversubscribed.
.Total bids for Panama bonds
amounted to 1920 t04,5S0, or more
than forty-1.our times the amount Of
fered. This fact, not heretofore made
public, would have stamped the loan
as even a more remarkable success
than it was, if all these bids could have
Deon TeSdEUSu DIS 1llduS III 6Opu 4oASiA
by responsible parties. Examination
of the bids, showed, however. that
many of them were only speculative
in character, but made in many cases
for very large amounts by those who
personally were irresponsible and in
capable of having made even the small
est preliminary payment if such pay
ment had been required. When the
awards were made, therefore, the
bonds were awarded without hesita-
ton to national banks in those cases
where the prices offered were 1925, or
higher, 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 con-
tract. The amount thus awarded to
national hanks was $24,99S,0OO.
awards made to individuals were
to those cases where the amounts sub
scribed fer were $4,000 or less, be-
cause such bids had at least prima
facie appe arance of good faith. Even
upon this modest basis the payments
made after the allotment of bonds
showed that q considerable portion of
these small bids were speculative.
ssThere was less margin for specu-
lation in the case Of 3 per cent GER
tificates, because, as the report says,
their terms of one year did not allow
for any considerable premium with
out extinguishing the amount OF in
terest 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 Panama bonds.
They, therefore, afforded a convenient
means tc, the banks to increase their
circulation.
For this reason, the secretary OF the
treasury thought it proper to announce
at an early date that offers from in
dividuals would no longer be received,
and it was ultimately decided to make
no allotments except to national banks.
No Partially Shown.
Concerning the distribution of pub
lie moneys in banks thruout the coun-
try, the secretary says that it has been
done without regard to partisanshlp,
and no section has received other than
the fair and impartial consideration to
which it is entitled It is shown that
the amount of public deposits on Aug.
% was about S115 100000, of which
New York banks held $2S,253,3S6. On
December Z the figures show public
deposits thruout the country amount
ing to s222,352,252. Considerable space
was devoted to showing that great care
had been taken in distributing depos-
it's, and much consideration is shown
to communities where particular trade
movements involve a special demand
for currency at certain intervals. Aft
er discussing at length the policy the
government should adopt in regard to
paying off its obligations. the report
hints ir. a general way at possible
treasury deficit at the close of the cur
rent year. the internal revenue collec-
tions for the six months ended Decem-
Der 81. 1907. showing decrease in
CUSTOM; receipts of sS.S3S.000. and in
ternal revenue receipts at $6,220,00O,