The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-01-30
ARGUMENT OF coRTELYoU.
Secretary Says the Securities Avert
ed Serious Catastrophe.

co OcTlouS Catastrophe
Washington, Jan. 29.-In response to
a resolution agreed TO by the senate on
Dec. 10, 1907, the secretary of the treas
ury today transmitted to that body de-
tailed statements concerning the award
of Panama bonds and per cent GER
tif1cates, together with recent financial
transactions of the government, and
also embodying information as to the
general state of the nations finances
during the closing months of 1907-the
period over which the recent financial
panic extended.
Long Letter With Report.
The report, which is accompanied by
long letter from Secretary Cortelyou
to the president of the senate, en-
braces a list of depositaries and the
amount of money placed on deposit
therein on various dates; a list of 9TH
er banks with the amounts of national
deposits, and the security held there
for; statements showing the condition
of banks on Aug. p. 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 receiv-
ing an allotment and subscription of 8
per cent certificates of Indebtedness:
data concerning clearing house certifi-
Gates issued during the panic and a
budget of circulars, press announce
ments and correspondence relating to
government financial transactions that
took place during the period mentioned
in the resolutions.
History of the Panic.
Secretary CorteIyOu. before anaIvzins
the crisis and setting forth his official
actions in regard to the report, gives
a summary of occurrences in the Unit
ed States financial world from the time
he assumed charge until the special re-
port was compiled. He states that
business conditions were becoming I'M
settled when he became financial mem
Der of the cabinet in March, 1907. Va
rious stringencies occurred prior to
August, which were promptly relieved
A plan of weekly deposits of govern
ment funds in various banks was be-
gun on Aug. %. By Oct. IA these de-
posits had reached total of $2S, 000. 00O
In October occurred the stirring events
in New York which eliminated in the
closing of the Knickerbocker Trust
company and the decision of New York
banks TO issue clearing house certifi-
Gates.
Millions Sent to New York.
The treasury transferred to national
banks within a few days the sum of
S35,OO0,0 900, and transmitted to New
York within three days about $50, 00O,-
600 in small bills. In New York City
alone, the report shows. clearing house
certificates were issued in excess of
100000 900. BY the middle of Novem-
Der the treasury had met the demand
for relief to the extent that the work
ing balance was reduced to approx
mateiy $1,000, 000 It became apparent
that no further deposits could safely be
made, banks were permitted to substi-
tute bonds suitable for savings bank
investments for government bonds
which were held as security against
public deposits. Government bonds
were thus released as additional bank
note circulation. After the issue of
Panama bonds and one-year treasury
certificates, the bank note circulation
began TO increase until ii stood on Dec
81. $500, 100. S95, as against $780,, 1fS,742 on
Oct. Is. On Jan. IS, 1908, the issue had
reached $685. 25.SO6.
Says He Saved the Nation.
1.-THE announcement of the issue of
the new securities by the treasury
says Mr.. Cortelyou, marked in some
degree the turning point of the panic.
No further steps We're considered nee
essary, except to continue the deposits
of public moneys for a time where they
were available, and early in December
il became possible 10 replenish the ca sh
i'm the treasury by the withdrawal of