Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-01-30

a resolution agreed to by the Senate
on Dec. II, 1907, the secretary of the
| treasury today transmitted to that
body detailed statements concerning
the award of Panama bonds and 3 Der
cent. certificates together with recent
| financial transactions of the govern
| ment. 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
The report, which is accompanied bv
a long letter from Secretary Cortel-
you to the President of the Senate, en-
braces list of depositares and the
amount of money placed on deposit
| therein at various dates; a list of other
banks with the amounts of national
deposits and the securities held there
for; statements showing the condition
of banks on Aug. 90, 1907, and Dec. 8.
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 re-
ceiving an allotment; allotments and
subscriptions Of 3 per cent. certificates
of Indebtedness; data concerning
Clearing House certificates issued dur
ing the panic and a budget of circulars.
press announcements and correspon-
dence relating to government financial
transactions that took place during The
period mentioned in the resolution
Secretary Cortelyou after giving
brief SCnnnSis of tho that
transpired since he assumed charge Of
the treasury department in March.
1907. and reviewing the financial crisis
of last October, says:
In order to meet the demand for
currency by the institutions which
were subjected TO pressure. the treas
ury department forwarded to New
York within three days about $4,000
600 i'm small bills.
while the action of the department
in placing large sums in the national
banks in New York was subjected to
some criticism it was amply justified
by the conditions as they then existed
and as they have been exposed in the
light of subsequent events.
An examination of the deposits
made by the treasury in the banks.
from time to time, commencing i'll the
middle of October, will show that as
the stringency progressed the treasury
gave relief in every important locality
where assistance seemed to be required.
Some of the more Important deposits
were as follows: Chicago. 100000
Pittsburg. $1.5o0.000; Cincinnati, ST.
100000; Minneapolis and St Paul. $780,,
900. and in many places in the South
and West the public revenues, which
ordinarily would be RENTED to the
various sub-treasuries and thus taken
out of circulation We're allowed to aC-
cumulate in national bank depositaries.
by the middle of November, the
treasury had met the demand for re-
lief to the extent that it had deposited
with the banks all accumulated funds
not needed for the Immediate purposes;
Of meeting government expenses and
had reduced the actual working bal
ance to approximately $5.00o,0o0.
In the meantime, and. as apparent
~ no further deposits could safely be
made from the diminished cash re-
sources Of the treasury, national banks
We're notified that they would be per-
mitted to substitute bonds suitable 70:
savings banks investments for govern
ment bonds which were held as Sc
curity against public deposits. Tho
purpose of this measure was to enable
the banks to employ the government
bonds, which We're thus releaGed as
security for additional bank note cir
culation. in conformity with the law
Just before the acute stage of the
crisis. the national bank note Circula
ton stood Con Oct. 49, at s6t7 1l8, IA:
While strenuous efforts were made, es-
pecially by some of the large banks in
New York and Chicago to comply with
the expressed wishes of the department
and of the comptroller of the currency
to increase circulation. the amount out
standing had risen on Nov. l only 10
ssl1 ,S22 SIS. and on Nov Is to S631, 3l4.-
943. The most important increase in
the circulation took place after the an
nouncement. about to be referred to-,
of the government issues Of Panama
bonds and one year treasury certifi-
Gates. so that the circulation attained
on Dec. /, the amount of $685., Els, 1876;
on Dec. Is. se76,914,235, and finally, or
Dec. 81. $500, 100, S9J. By the latter date
the urgent pressure for currency had
practically ceased and yet not con-
tinued to be issued in compliance with
orders previous received, until the
outstanding circulation on Saturday.
Jan. Is, last. was $685. 500
with view to relieving this situa-
ton, it was decided on Nov. il to re-
ceive applications for subscriptions for
$3o,oOO.ooo in Panama canal bonds. and
$100.000,00o in three per cent. certifi
Gates of Indebtedness
ultimately it was found necessary
to issue only s24.631 $50 in the Panama
bonds and sl5,436,5OO in the certificates
of indebtedness.
'',rhe comptroller of the currency re- +,
Trained at the height Of the panic from
,alling on the national banks for the re- I,
,ort of condition usually required during
November, but he issued such call for /
-epOrts of condition on Dec & The re-