The Montgomery advertiser., 1908-01-30
CORTELYOU'S
REPORT FILED

tC0mtanued fr0m Pmge 0we.D
ket. IL would have failed OF this pur.
pose. II awards had been made. even
to bonafide bidders. which would have
resulted In large drafts upon the re-
serve money Of the banks, and would
not have aided in drawing money from
private boards. Il was. therefore, de-
clded in the case of the Panama bonds.
to make no awards TO individuaig Ia
excess Of $4,000. II was also decided
TO accept the highest bids Of national
banks Of the remainder OF the issue af.
ter these minimum allotrnents to In
dividuals."
The Total nads.
The total bids Of the Pananna Canal
bonds. continues the Secretary. amounts
90 to S3.2s0, s0s.5So, or more than for
| ty-four times the amount offered. This
fact, not heretofore made public, would
have stamped the loan 90 an even more
| remarkable success than II was, IL all
those bids could have been regarded
as having been made in good faith by
responsible parties. Examination OF
the bids showed, 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 irrespon-
eible and incapable OF having made
laven the smallest preliminary payment
II such had bean required. When the
awards were made. therefore, the bonds
were awarded without Hesitation to ma
tionai bapks IN those cases where the
prices offered were 100 1-s or higher.
and where the bid appeared In other
respects TO be made in good faith ana
with full capacity on the part OF the
bidder to execute his contract. The
amount thus awarded to national banks
was s24sss,ot0. There was less mar.
gin for speculation in the case Of the
per cent certfncates, because as the
report saws. their term OF one year aid
not allow for any considerable pre-
MUM without exsinguishing the amount
Of interest They we're Issued at par.
and this made them Immediately avail-
able. as 1t was not necessary TO secure
bids as in the case OF the Panama
bonds. They therefore afforded a con-
venient means to the oanks ~ on0e
For this reason the Secretary Of the
Treasury thought proper to announee
at an early date that offers from IN.
divfduaIs would no longer be received,
ana II was ultimately decided to make
no aIiotments except TO national banks.
This decision was dictated oy two con-
alterations: First, the desire 70 slim
Mate the issue OF bank note circula-
tiou for a period which would relieve
the crisis; and, second, the fact that
the announcement Of the issue Of new
securities had already, TO large ex-
tent, accomplished It's intended pur-
pose. and had made it unnecessary to
issue more than fraction OF the IuIl
amount. The issue OF these securities
was suspended therefore. the date nrs'
named for closing the receipt OF SUB
| acrIptiona the total amount OF the sED'
scriptions having reached $sS.sbs.SOO.
Xnerease Of CircuintiOB.
The amount issued was only $l5,-
4ss, 500. As all OF these were regis
tered and issued to national banks
with the understanding that tney
should be used Is basis TOT lner rs,,s'
ing their circulation, or to secure pup,
. lie deposits. they were all on deposit
with the Treasurer Of the United states
for these purposes. While the AWARDS
of 2 per cent. bonds were maoe PIT
marily 10 the highest bidders among
national banks. the effect OF the awarol
was to distribute the bonds anone
banks in forty Of the forty-six states
| OF the Union. The one year eertin
Gates were distributed less widely bu
were taken, however by INSTITUTION
=. in at least eighteen states.
The issue. OF Panama bonds woul'
! have been required In any case wtthil
! n short time to meet the expenses .
constructing the canal ana tns 80
! retnry OF tue AtS~sAsS - =. ---,rse -.
eouid hardly be held responsible 60
, tha erect OF such issues upon the vol
! uy,an az hank note circulation whateVe
o,irht be his opinion as 70 the desira
hilitv Of the imitation which might re
Eult. Practically. therefore the re
> sponsihilIty resting upon him reiate
a only to ths si6,4sebeo In the one ye ~,
!. thaJr maturity and redemption on NO
; ,.s.,hsr al 81 the present year. Con
. ssrnSne the distribution Of public none
a. banks throughout the country, IN
I. aa.rstsrv saws IL has bsen done with
!, 80 1890 10 craftsmanship and no sec
|. 49,, nas received other than the tai
: 80 ,nonartIai consideration to which !
IL entitled. -. 80 ,.,,h,,
!, s.nosita ON August % was about $ile'
!, onh ma az which the New York bank
- RIA aeR 2ss. ASS. on December Z. tn
! agures show public deposits through
: NE the country amounting 70 S2zs'
n SsS as9' In connection with this state
n1ant the report says: while IN
: Ranks Of the state of New York az
4 nsar as holders of public monies I
= the amount of ass per cent OF tnei
: canitaI and surplus the banks OF tn
v New England. Eastern ana Miool
K western States, taken a. whole an
Including New York. show q per GEM
N age OF deposits to capital ana surplu
. Of only a little more than Is per cen
o The banks Of the Southern, Wester
Is and Pacific States on the other nam
show 3 proportion Of nearly - pc
syN...ua - ths siwtributlon Sppende