The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1908-02-27
.CORTELYOU EXPLAINS
ACTIONS DURING PANIC


the situation the excess OF exports
over imports rising from Sl.GlG.I0i i'm
Aug, 1907 to SlliS9O,GG5 in Dec. 1901
Secretary Cortelyou defends the is
sue of Panama bonds and treasury
certificates by saying that it was adj
yisabIe 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 its aid i'm every possible legal and
proper form.
Concerning the allotment of the new
issues of securities, he says:
Their character was such that it
was anticipated most of the subscrip-
tions would come from national banks:
that the per cent bonds afforded such
privileges to national banks as a basis
of note circulation tnat there were
strong inducements to the banks to
outbid private investors. who would
find in the bonds nothing more than
the best form of security, paying only
per cent per annum, and that it was
eXpected-and this expectation was
tuliilled-that the bonds would be used
chiefly as basis for additional bank
note circulation and that such circuIa-
ton would contribute its share to re-
lieving the acute pressure for currency
which existed throughout the country.
Even if there had been no other justi-
iication for limiting subscriptions to
national banks, this consideration
that the bonds would be used to meet
the pressure for currency-would, in
the opinion Of the department, have
justified an absolute restriction of the
awards to national banks"
The total amount Of the subscrip-
lions for certificates was $50, 959 500.
The amount issued was only 1885,
500. No awards Of Panama bonds were
made to individuals in excess Of S1O,-
900.
The report hints in a general way
at a possible treasury deficit at the
close Of the current year, the internal
revenue collections for the six months
ended Dec 81, 1907, showing a decrease
in custom receipts Of $S,S3S 900 and i'm
internal revenue receipts Of $G,22O,OOO
with the probability that the rate of
decrease during the remaining half OF
the year will still further decline.
Anticipating the financial wants of
the immediate future Secretary Cor
telyOu intimates that if new legisla-
ton does not relieve him of the guar
dianship over the money market that
has arisen, he must make provisions
for relieving it by making deposits in
the autumn, the season when the de-
mand for money is usually the great
est.
In closing the secretary says if re-
cent events should lead to intelligent
legislation, tending to adapt the move
ments of currency more nearly auto.
matically to the requirements of bust.
ness, It would be a source Of gratifica,
tion to the Secretary and would great.
ly diminish the sense of responsibility
which must weigh heavily upon any
occupant Of the Office under conditions
such as those of the recent crisis.
The secretary's report was not read
but was laid on the desk of each sena
tor in printed form. The fact that il
came in that shape started an argu
ment among Senators Culberson, Till
man and Lodge. Mr.. Aldrich remark
ed that all the reports Of the secretary
of the treasury are made to the senate
in printed form.
Mr.. Tillman retorted to this Rugges
ton by declaring: "The secretary o
the treasury is assuming the airs o
a president before he is elected to tha
office. The president sends his mes
sage in this printed form, but / have
never known a cabinet officer to as
sumo to do this before"