The Birmingham age-herald., 1911-02-21
-EXPEC1 ENORMOUS
 PANAMA BOND ISSUE
Will EndeavOr to Make the
 Bonds Popular
PEOPLE SHOULD BUY
United States Treasury Contemplates Issue of From Thirty to Fifty Millions of 3 Per Cent
 Panama Bonds

Washington. February 20.-An issue of $50, 100000 to $50, 900, 900 of per cent Panama bonds seems certain to be made as soon as Congress passes the bill authorizing the Secretary of the Treasury to withhold the new securi- ties from use as a basis for additional national bank notes.
 In the event that the present oppo- sition to the legislation affecting the bonds should prevent its passage, an issue of per cent certificates of in debtedness having one year to run, Is probable. That is the treasury's tenta- tive plan now.
 In view of the sale of about s1oo.0oo,0 ,0oo industrial improvement bonds during January and the prediction that about $500, 100000 more will find their way to market in the next few months, treasury officials agree that this is propitious time for an issue of govern ment securities. In any event they would have to be issued during the spring or early summer. It would not be considered practical to attempt an issue in the fall when the crop move ment season is on and money is in de- mand.
 Make Issue Popular
 Aside from that, Secretary MacVeagh wants to make the Issue popular one. Recent statistics which were gathered for him by Assistant Secretary Andrew show that more than four-fifths of the bonds of the United States are owned by the banks and that only .2o,o0o in- dividuals of a population of 92.000,000 are registered as holders of govern ment securities, while France. with a population of 40,o00,000 has more than 5000, 900 investors. Treasury onficials interpret the demand In some parts of the country for system of bank de- posit guarantee and the response to the establishment of the postal savings system as indicating a popular demand for government secured means of in vestment such would be presented by bonds available to the public. Sec retary MacVeagh believes that can be accomplished only by withholding from future issues the circulation privilege, which has tended to keep United States bonds in the hands of the bank CTS. NOt Increase bank NOteS Secretary MacNeagh is opposed to any further increase in national bank notes He and his advisers take the position that there is no relation be- tween the demand of the country for revenue to build the canal and the de- mand of the business of the country for currency. It Is pointed out by those who argue thus that the Issue of national bank notes has increased since 1900 from $500, 100000 to more than $70o,o00,000. Treasury officials hold that that. coupled with the great increase in the gold stock from $60o.- loco, 900 in 1896 to ,600,000.000 In I1s1O has been one of the factors in the general rise in prices. The per capita wealth of the nation increasing e5 per cent in the last 15 years Is regarded as indicating a plethora of currency. To issue more bonds on the old basis. Secretary MacVeagh feels. would be to add artifcially to the supply of cur rency and augment the general rise in prices.
 Taking these things into account. treasury officials are inclined, if the |leRislation in Congress fails. to borrow on short term notes