The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1908-01-31

cate the issue OF the Panama bonds?"
Mr.. Carter retorted promptly that
the secretary had Just sent the infor-
nation concerning that matter to the
senate and he did not propose to de.
termine that matter until he had an
opportunity to consider the facts.
Mr. Tillman declared that the sen.
ator from Montana was paztasan in
behalf Of the secretary.
II have not been in any q parti.
SAM replied Mr.. Carter, adding that
all presidential candidates would &C.
quit him Of being partisan.
The report, which is accompanied
by a long letter from Secretary Cor.
telysu to the president Of the senate,
embraces a list Of depositaries and
the amount of money placed on de-
posit therein on various dates; a list
Of other banks with the amounts Of
national deposits and the security held
therefor; statements showing the. con.
dition Of banks on August 20, 1907,
and December 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 receiving an allotment, and
subscriptions Of three per cent GER
ti1lcates Of indebtedness; data con-
corning clearing house certificates IT,
sued during the panic and a budget Of
circulars. press announcements and
correspondence relating to govern.
ment financial transactions that took
place during the period mentioned In
the resolutions.
A Thorough Summary.
Secretary Cortelyou, before ana
lying the crisis, and setting forth his
official action in regard to the report,
gives a summary Of occurrences In tn.
United States financial world from
the time he assumed charge until tho
special report was compiled. He
states that business conditions were
becoming unsettled when he became
financial member Of the cabinet IN.
March, 1907. Various s~tringencies
occurred prior to August, which were
promptly relieved.
A plan OF weekly deposits had reach
ed q total Of 32s,0oo,0Oo in October,
when occurred the stirring events in
New York which eliminated In the
closing Of the Knickerbocker Trust
company and the decision Of the New
York banks to issue clearing house
certificates. The treasury transferred
to national banks within a few days
the sum Of $780, 900, 900 and transmitted
to New York within three days about
100000 0 in small bills. In New
York city alone, the report shows,
clearing house certificates were issued
in excess Of $780, 600, 900. By the
middle of November the treasury had
met the demand for relief to the ex-
tent that the working balance was re-
duced to approximately IS, 100000.
It became apparent that no further
deposits could safely be made, and
banks we're permitted to substitute
bonds suitable for savings bank In.
vestments for government bonds
which were held as security against
public deposits. Government bonds
were thus released as additional bank
circulation. After the issue Of Panama
bonds ana one-year treasury certifl.
Gates, the bank note circulation he
gan to increase until It stood, on De-
cember 81, at 36st,1s0,ssb, as against
3eo7,11s.74s on October IL. On jan
nary Is, 1908. the issue had reached
$685., 1925, s06.
Defends Panama. Bonda
Secretary Cortelyou defends the is.
sue st Panama bonds and treasury
certificates by saying that It was ad.
visable to take some strong and reso-
Lutte step which would convince the
public, both at home and abroad. that
the government was thoroughly alive
to the situation and determined to give
it's aid in every possible legal and
propec form.
Concerning the allotment Of The new
issues OF, securities he says:
"Their character was such that 1t
was anticipated most Of the subscrip-
tions would come from national
banks; and it was expected-and this
expectation was fulflled-that the
bonds would be used chiefly as a basis
for additional note circulation and
that such circulation would contribute
It's share to relieving the acute pres
ure OF currency which existed
throughout the country.
''The legal right Of the department
to make allotments Of the bonds and
securities to such persons and banks
and in such amounts az It might see
At hardly be called in question. In
view Of the fact that the circular Of.
ferfng the Panama bonds contained
fhia dlafinrt nrnviulon.