New-York tribune., 1911-01-01
COMMERCE COURT WORK
National City Bank Circular Dis
cusses Subject.
OPINION ON PANAMA BONDS
Character of Postal Savings
Banks Securities Also
Taken Up.

! The January circular OF the National City
Bank Is devoted largely 20 a discussion of
the duties OF the new Commerce Court
created at the last session Of Congress,
which will be formally opened in Wash
/ ington within the next few weeks The cir
cular says that previous legislation OF the
kind TO be brought before the Commerce
/ Court does not indicate that the new court
will be kept hard al work. unless il finds
means 20 busy itsel. in extended hearings
on cases which come before il. II points
out in this connection that I'm the last four
/ years there have been only about thirty
cases IN the United States which would
/ have been tried in tho Commerce Court II
/ Il had been in existence
/ In regard 20 the interest rate on future
issues Of Panama bonds the circular says:
( II vill be recalled that the Secretary ~
the Treasury has always since the passage
I Of the tariff law Of August o. 1899. refused
70 avail himself OF the bond authority con-
/ tanned I'm that measure That act provided
. for additional Panama bonds 20 be issued
at a rate not exceeding 3 per cent per an
nun, and 20 an amount necessary 10 reim-
/ burse the Treasury for the original cost OF
the canal and construction work TO date.
and for the work yet remaining 10 be done
l total issue OF $3.50. 0.569.0r Any attempt TO
! issue bonds under this authority. in the alb
| sence OF an adjustment Of the circulation
\ tax IN such manner as 10 protect the si3l-
O].000 outstanding ., would have been eN-
/ ceedingly harmful I'm its results The old
/ .. representing al this time the bulk or
I the interest bearing debt, would probably
/ have fallen below par. II has come TO oe
realized by almost everybody-g
/ officials, As well as the public at large
/ that the time has arrived when the nted
States must seek a market for lis bonds on
an investment basis, uncomphcated oy
such artificial considerations a. are IN
voved in the availability Of bonds as a
basis for national bank circulation In
! order 70 test the Investment value or
| United States bonds which have no clrcula-
/ ton privilege, and 70 pave the wa Cor the
/ utilization Of the Panama bond authority
/ contained IN the last tariff act. without
prejudice 70 previous issues, the secretary
I % the Treasury on December L. submitted
for the consideration Of Congress the fol-
lowing bill:
That the secretary of the Treasury be.
and he IS hereby authorized 70 insert IN
/ the bonds 20 be issued oy him under Sec
ton % Of an act TO provide revenue. equa :
/ izs duties and encourage the industries or
! the United States, and for other purpose
/ approved August g. 1903, a provision that
1 such bonds shall not be receivable by the
! Treasurer of the United States a. security
/ FOR the issue OF circulating notes 10 ma
/ tional banks: and the bonds containing
/ such provision shall not be receivable Tor
that purpose. Provided that the authority
/ hereby conferred shall cease when DonaS
I 10 the value of ilpJ 0N.00O. containing such
J provision shall have been issued.
/ Although n Is believed that very little IN
I the wav of general legislation can ue
passed at this short session OF congress, s.
/ there is some hope that the measure As
above proposed will become laW SnoIlu
d this be the case an offer OF bonds uhuSl
/ the amended act may be eXpecteI shoIlLs
( thereafter In the mean time the treasury
must either maintain itself OUT or curTeh'
revenues. which are now fairly satlsIac-
tory or resort 10 an issue OF per CSHl
. oue-vaar certificates Of indebtedness aIsH
/ provided for IN the tariff act or August D.
As the result Of much research Treas
~. officials are doubtful whether theie u
/ an investment market IN the United States
fnr bonds hearing as low a rate as "a pei
T cont l. Is probable therefore, that shou!u
tho authority asked for be gwen; the Tae y
on the new bonds would he nNed a. D P.I
. cent while the issue would %" oteIeu ~
~ ntirIic and the awards made 10 the
/ highest bidders. II H. only IN TINS ndnnei
| that the true basis can be a''e "a. "a ~ - - -
The Treasury inycsiiGat9[1s [N, s,IoN ,yo,srr
bonds Of the most stable European EoNs .
/ r77e-.s to-day Weld more than per Celll
/ British consols bearing ~ per CeHt ~" :,
/ sell at .. a price which Yields ah dllrua' r..a
i raturn of 2is per cent The German In
/ ne-isi nor cent bonds sell at So "'eldlne
/ . 81 nAr cent. and the French per 5e"'
/ rentes eel A. a7f-. yielding S.h per cen"
sneakirc oe tho character OF the securi-
ties that will be received from postal sa'
irvs depositarv banks after the new pos'a
savings banks system IL put into operation
u.bicb ,s expected - - early this ear. INC
circular says
7, nov. seems probable that all bonds on
he United States, the government o. on ~ ~
Philippine Islands. the District 81 20
and the government ~ Porto Hl,o VIII "
aT -. RRse Also been tentatively decided that
honds of ary state of the United state el,'I ~,
honds Of the Territory or HaWal sna. ~
/ sccen,ed al ~ per cent of their maIHsl
value. such market value not 10 10 'o'lS''-
| cred as exceeding par. 49,. l..,s- - any
I II is also understood that oon9s OF an
CITY. town. county or otner IesdI! yUr.s, yyI,s,I
! .t,.sd ,,,unicipalltv or district IN the Onlteu
/ Statos yrhIch has been in existence Tor a
period OF ten years and which Tor ~ E5,S 30,
Tre,ious 70 such deposit mas NOT uTta"' - u u
/ in the payment OF any part OF tl1HsI ~,
-. -.i.,.;,aI - ~ interest OF any funded deDt
authorized 10 be cOntracted by II, anu S y IN
ret ponded Indebtedness does nol tA.etut ~
nor cent Of the valuation or lts taAdol'
HIrarerrv IN he ascertained BY the iaSt pr
! cradinr valuation for the assessment ot
tayse will be received at 20 per ,thI ot
their market value, suctl ii.lL m.at HeI ,'a
Tn TO this time the board OF trustees ".'1
not formally approved oi inls pau a. an an
| the character Of the securities wiz ~.
! no -eceIyed or as to the percentase OF Li.e
/ u,s.I,at ,aIue at which they viii ne accept
4 mo - = g. known that this statement IS,
az least, approximately correct as TO the
] present views OF the board
/ According to the circular II Is estimate
that the gold production Of the mines OF me me
r-,itad states for the calendar year 1910
! viii approximate between SoVp'Wo ana
/ sGs GOO as against Ao0@JOOo Tor the ca,
erda- wear 1893 The silver produ 70 -
/ ssti~oated 10 be about the same a last year
100000 fne ounces.
1ocnDon-u ErTpOpOIJTAN SALE