New-York tribune., 1913-07-29
Of twenty years is distinctly beneficial
to the holders of the 2 per cent oonos'
Calls Contention Trivial.

of twenty years is distinctly benehclal
TO the holders of the 2 per cent oonds'
Calls Contention Trivial.
THE Secretary spoke with amuse-
ment of the grave statements sent out
from New York in effect that II the
currency bill should pass and govern
ment deposits were put in the federal
reserve banks, the per cent bonds
now used to secure deposits would be
thrown on the market and their Value
thereby impaired. AS only Sl3,DO,OOo
of the 2s out of a total Of $3.50, So, loo
are used to secure government de-
posits. il can be readily seen how INV
iaI this is If these bonds are not
used 10 secure deposits they can be
used for additional circulation.
"Nearly all Of the rs are owned by
the banks. II the price is marked
down IL is because the banks them
selves are putting pressure on the mar
ket and depressing the value OF their
securities. The fault is their own II
would seem the part Of good sense ana
aood business not to do It,
"The Secretary expressed the hope
that the process, il continued, would
not be carried to a point where the
department would have to take acton
There is and always has been a
narrow market for the per cent
bonds. Just as there is for many IN
active although high grade corpora
ton bonds, and every one knows how
easy 1t is to put up or down the quo
tations for such bonds, especially when
favoring state of mind has been
skilfully created.
THE department has, because OF It's
relation to the banks and its neces-
sarily important part in the financial
affairs of the country, a deep interest
in the welfare of the banks. in the
stability of the financial situation ana
in a continuance of the prosperity now
attaching to agricultural and indus
trial enterprises and general business.
Advised Against Restraint.
For these reasons the Secretary
said that he hoped that the banks
would not consider a suggestion from
him innpertinent In many quarters
there is a disposition on the part OF
the banks to restrict legitimate cred
it's. There is nothing in the SITUATION
TO warrant such course. The oanKs
should not put undue restraints on
business. Should any unusual strin-
gency appear the Secretary said that II
could easily be met through resort 10
the S5OOOOOOOO emergency currency
now held in reserve, which can be
issued if the banks need it, or by use
Of the resources Of the Treasury De-
partment, or both.
IN closing the Secretary said with
emphasis that there was not going 10
be anv financial trouble and that the
large crops now in prospect were 60
ing to he moved without difficulty and
that the powers of the department
would be exercised in their greatest
amplitude for the protection Of the
business interests of the country
United States government bonds eX-
hibited continued weakness on the New
York Stock Exchange yesterday. one
sale Of Panama 2s were recorded at s51a'
and at private sale there were some small
transactions in the government 2s, when
are held largely by the banks to secure
their banknote circulation, around s519.
Out-of-town banks, which have been the
largest sellers of this issue, were unable
20 obtain a better bid than 95 for 10000
N block Of the 2 per cents. There is very
VI little demand for those bonds, however
and bond dealers say that there is not
likely to be unless the currency commit
tees at Washington do something soon
that will tend TO strengthen the market.
Even should the bonds return 10 par II
is believed there will be little activity
because then the banks will not care TO
sell