New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-03-09
PREDICTS BOND ISSUE SOON
National City Bank Comments on
Canal Legislation.

The March circular Of the Nat,o,ai ,-,,,.
Bank comments as follows ,1pon The e-s,-
cial measures suggested bv The TrAas,,r,.
Department which became avs in tba ~
session Of Congress
The Treasury was mos, succsss,,,, -. -,
me departments of the government IN s.
curing ne legislation II recommended. Sec
rvtaiy MacN eagh asked Congress fo,. fonr
measures-one 10 enable biro - 80. -
Panarna bonds authorized under IT, tarifs
act OF lsJs without the circuia ,ot, nr,v;
Nsss;ec me aauon9orizing the issue OF gold
on ana tcreign coin one authorizing the
payment or customs and internal revenues
~ certified check on government deposit
tories, ana one repealng lie old sinkir q
funo laws and authorizing the SecrsTary
or The Treasury to use al his discretion
surplus moneys In the Treasury I'm the pur.
snase or redemption Of the outstanding in
tr-rst Dee ring obligations OF the United
states The first three were passed bv DO, h
ao4ses ana signed by the President. being
nov Jaw No action was taken or the
IourtA' so That the obsolete sinking fund
PROVISIONS remain on the statute books
The action of Congress in directing that
the eanaIna Canal construction bonds
whicr may be issued under the tariff act
OF august o. 1909. shall not be receivable as
security for national bank circulation will,
~ gond reasonable doubt result IN the issue
or somewhere between thirty and fftv mill
IONS OF these bonds within the next lew
weeks. review of the Treasury statement
of eceipts and expenditures shows conclu-
sNelN thaI a bond issue cannot be long
cel2yeo. The Treasury working balance is
not IN 8 satisfactory condition. and the cor
stant drains on the Treasury by reason Of
canal reQuisitiOLs make q engineering Of
the Treasury cash absolutely necessary. So
far this nscsl wear the canal disbursements
alone have aggregated over t5.G10.G00
Ire new bonds about 70 Dc issued b the
Secretary OF the Treasury will bear per
cent interest and by the terms Of The act
Il less
steps y any, the Secretary will take 20
popNierzc THIS loan s. not known. but Il
Is assumed that he will seek 70 secure g.
" ide distribution Of the bonds as posi-
ple. This legislation Is regarded as OF tie
highest Importance, since IL will demon
strate, as never before the basis upon
which the United States can sell its Sc
curlies. Beginning with TIE refunding act
OF 1900. each issue OF bonds carried with n
special privileges a. 10 security tOr clrc4-
l~tiOn ana low rate OF circulation tax. and
advantage was taken X this fact 20 re-
duce the RAE Of interest which they should
bear 10 the lowest possible limit. The bonds
soon TO be ISSUED offer no Inducements to
the purchaser other than the per cent IN
tereSt and the tax exempt TEXTURES which
they carry.
Referring 20 postal savings Banks the
circular says
The postal savings system up 20 this time
has proved 70 be decided success. quite
beyond the expectations Of the officials.
The receipts al the rorty-eight offices al
ready designated for tie month OF January
last aggree a ted about 5000, or something
over 81 ,2SO each. and Il is believed that the
returns for February will show material
increase over this amount The officials
have taken special pains 10 ascertain
whether or not any Of the money depos-
tied in postal savings offices had been with
drawn from local banking institutions, and
IL is stated 10 be the fact that bankers,
without exception, have reported that they
have lost nothing through deposits III saw
iug- postOfiices.