Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1911-04-06
GOVERNMENT WILL
SELL BOND ISSUE
IN JUNE
Undertaking of Mr., McVeagh
is Biggest Financial Deal
Made in Many Years BY U.
s, Treasury Department.
TO Evening Herald.

special 20 Evening Hctald.
Washington. Ap.il q one of the
most important financial Innovations
ever lnauRuratod bs the federal gov-
ornmrut viii soon he made by ~ccrr-
tarS Franklin MacNrngh Of IN, trcas-
urN department
about June cor July I he viii Of
Ter for sale 1000 900 worth of Pan
anna canal bonds bearing per cent
interest The announcement ct this
issue siS months ago did not create
any excitement nor did IL affect wall
street IN tho least The tinancicrs.
however. wsr" somsN hat pertui bed
Wh"n II was found that ,nugrc,s had
decided 10 issue the bonds without
giving th'm the circulation privileges.
That u.s. national banks cannot buy
the bonds ANA issue bank notes ON
their security tn only hope of a
irott iu this connection for fnan-
DIrrs viii bo "a small commission for
buNIEg 10" bonds tnr customers Who
v'I hold the bonds for investments.
WHOM th,~, bonds are offered FOR
sai. ~ Niu h, IA. FIRST umr u the
nI~iorN of tn" treasury department.
since thr rnH .tmout OF the national
banking law nearly q hJ' .,uturt
agu. thal q similar uuuu issue was
contemplated, u ISSUE without th.
circulation privilege. UN circulation
privilege I> meant tnr us, o' govern
m'nt bonds b> national banks as s"-
.ur.tN for nauk notes WHICH tho, issue
a. money
Th,r, are already outstanding about
4 ..N
bonds hut the, onN bear tlout o.
per cont iutcrcs, Th.so ua,' th, .ir-
,uHtiun privilege. Tho Wuldt"d
issu,. however win oulN n, held hN
th, investing public should banks
hui them about the ouN th' use they
can make uf th"m wiz hc 60 t,e'll
th"W tn private parties Nnu are look
ing Tor giit-rdEt investments. should
'h, mouo, market be- flooded. Wou,N
cas-, and at the sam. tWc hard tu
ioau. Il may %, that some banks VIII
hold TIA, houd- as Investments nut it
is expected that onl, few Of them
would ur mp their surplus u mis-
WAY
What m, secretary OF the rr,usut>
du,~ expect and what is most likely
90 happen. Is that the people OF the
United states. tho ordinary tniNs win
small amounts of money laid away IN
national banks az In priyat, banks.
drawing very utti, uT ne interest, Viii
bu, these bonds and hold them aS So
ruritN They pltord the best security
M the world. ThcN viii d" easily CON
ycr,iblc into cash. aud are as good ass
gold amy dnN IN the year should
T.. "A
loan of ton times the amount OF the
issue 1t i- assured that these bonds
would son readily for the is-ur and
would not cause a ripple I'm the tirar-
ciul market
The significance behind the moVc-
mcpt tu obtain AN issue of bonds With
out the circulation priyilcs" vas nut
dimlN observed hN q number OF con-
gressmrn and experienced iinhnct"iN
when the last congress enacted tn"
Legislation that permitted the issu" 81
their hUnds. Certain astutr gentle
men IN congress were wen awar" of
hat war behind the scheme.
What VAS IN the Niud was simply
that the United states government II
an the cyr of great revolution IN iis
banking system, the adoption "i q
system which In the future viii in
rludc the issuAnc" at government
bonds only for investment purposes.
At present every bond ISSUED bN
the government has the circulation
privilege. The new three per cent
Panama bonds win he the ouly "N-
coptiun Win their issue - n"W f.
uancial order viii be inHugurat"d,
Government bonds WIN then be out
nut with a sufficient rate of interest
attached 'tu make them attractive I"
the citizen who cares to invest nnd
who has been reluctant To- entrust his
money To- the business Ncissitudos at