Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-01-29


opinion of the department, have justi-
fed an absolute restriction to the
awards
The legal right of the department
to make allotments of the bonds and
securities to such persons and banks
and in such amounts as It might see
fit, can hardly be called in question In
| view of the fact that the circular Of
| fertng the Panama bonds contained
| this distinct provision.
| " The department also reserves the
| right to reject any or all bids. II deemed
| to be to the interests of the United
| States to do So.
| obviously, so far as the offer of Sc
curities was Influenced by tho desire
| TO prevent distress IN the money mar
| ket 1t would have failed of its pur-
| pose If awards had been made even to
bonafide bidders which would have re-
suited in large drafts upon the reserve
money of the banks and would not
have aided in drawing money from prl-
vate boards. 1t was, therefore de-
clded in the case of the Panama bonds
To make no awards to individuals In
excess of $4,000. 1t was also decided
to accept the highest bids of national
banks for the remainder of issue, after
these minimum allotments to individ-
uals.
TOTAL BID.
The total bid for the Panama canal
bands, continues the secretary, amount
ed to 1920, 604 $50 or nejre than "A times
the amount Offered. This fact not
heretofore announced would have
stamped the loan as an even more
remarkable success than 1t was, II all
these bids could have been regarded
as made in good faith by responsible
parties. Examination of the bids shows
ed, however, that many of them were
not only speculative in character, but
that they were made in many cases
for very large amounts by those who
were personally irresponsible and In.
capable of having made even the small
est preliminary payment IL such pay
ment had been required.
When the awards were made. there
TORE the bonds were awarded without
hesitation TO national banks in those
cases where the prices offered wery
lO25s or higher and where the bid APP
peared in other respects to be made in
good faith and with full capacity on
the part of the bidder to execute his
contract. The amount thus awarded
TO national banks was $24,299040. The
awards made TO individuals were limit
ed to those cases where the amounts
subscribed for were for $4,000 or less,
because such bids had at least prima
race appearance of good faith.
Even upon this basis the payments
made after the allotment of the bonds
showed that considerable portion of
these small bids were speculative.
AIDED BANKS.
There was less margin for specula-
ton in the case of per cent certifi-
Gates because, as the report saws, their
term of one year did not allow for
any considerable premium win
tlnguishing the amount of interest
They were issued at par and this u
them Immediately available as It was
not necessary to secure bids as i'm the
case OF Panama bonds. They therefore
anorded convenient means Ia tina banks
AZ once to Increase their circulation.
For this reason the secretary of the
treasury thought proper to announce
at an early day that offers of the in,
dividuals would no longer be received
and II was ultimately decided to make
no allotrpents except to national banks
This decision was dictated by two con,
slderation, first. the desire to stiinu-
late the Issue of bank note circulation
for perdiod which would relieve tn.
CRISIS; and, second, the fact that the |
announcement of the issue of the new |
securities mad already, to large ex |
tent accomplished its intended purpose |
and had made it unnecessary to issue |
more than a fraction of the fun |
amount. The issue of these securities |
was suspended. therefore, before the |
date first named for closing the receipt |
OF SUBSCRIPTIONS the total amount OF |
din subscriptions having reached $685.,
oby'oO0. The amount issued was only
AS all of these We're regis
tered and issued TO national banks with |
the understanding that they should be |
used as basis for increasing their
circulation or TO secure public deposits.
they are all on deposit with the treas
urer of the United States for these
purposes.
BOND AWARDS.
While the awards of per cent bonds
were made primarily to the highest hid
ders among national banks, the effect of
the awards was to distribute the bonds
among banks in 46 states of the Union
me one~year certificates were distrih. |
uted less widely but were taken. how
ever, by institutions in at least is
states. The Issue of the Panama bonds
would nave been required In any case
within short time to meet the OK
penses or construction of the canal and
the secretary of the treasury, II is ar
sued could hardly be held responsible
for the effect of such Issues of volume
or bank note circulation. whatever
might be his opinion as to the desir-
ability OF the imitation which might re.
suit. Practically, therefore, the re-
sponsibility resting upon him relates
only to tho H5,436,500 in the one-year
certificates and will terminate with
Lheir maturity and redemption on Nov
30 of the present year.
Concerning the distribution of public
moneys In banks throughout the coun-
Try the secretary says that this has
oeen done without regard to partisan
snip and no section has received other
han the fair and impartial considera-
lion to which ii is entitled.
1t is shown that the amount of public
deposits oil Aug. 20 was about Sli5 900
100 of which the New York banks held
'2S ,2533S6, On Dec, T. the figures show
public deposits through the country
to S222, 49,. 252 In connection
With this statement tho report says:
While the banks OF the state OF New
York appear as holders of public mon
1ys TO the amount OF s26S per cent OF
heir capital and surplus the banks
IF New England, eastern and middle
Western states, taken as n whole and
including New York. show a percent
age OF deposits TO capital and surplus
n only little more than Is per cent.
The banks OF the southern, western and
Pacific states on the whole show a pro-
portion OF nearly Is per cent With the
Elimination OF New York from the east
I'm group. tho percentage OF the re-
naming eastern and middle western
states is only about H."
GOVERNMENT DEPOSITS.
Details Of the distribution appended
o the report show that the deposits are