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JEFFERSONIAN WR
EDITED BY <a \\ ’'SZ
If THOS. E. WATSON ' J
Vol. 11. No. 43.
QUICK RELIEF WILL BE GIVEN
BY GOVERNMENT.
• Washington, November 17. —Secre-
tary Cortelyou tonight made the im
portant announcement that as a
means of affording relief to the finan
cial situation, the treasury would is
sue $50,000,000 of Panama bonds and
$100,000,000 certificates of indebted
ness, or so much thereof as may be
necessary. The certificates will run
for one year, and will bear 3 per
cent interest.
The secretary’s action in coming to
the relief of the financial situation
meets with President Roosevelt’s
hearty approval, and the plan is the
outcome of the several white house
conferences which have been held
within the past few days, when the
financial situation was under consid
eration.
Roosevelt Approves Plan
In his letter to Secretary Cortelyou,
approving the treasury plans, Presi
dent Roosevelt states that he has
been assured that the leaders in con
gress have under consideration a cur
rency measure “which will meet in
permanent fashion the needs of the
situation, and which I believe will be
passed at an early date after con
gress convenes two weeks hence.”
The President’s letter to Secretary
Cortelyou, under date of November
17, follows:
“The White House, Washington,
D. C., November 17, 1907. —My Dear
Mr. Cortelyou: I have considered
your proposal. I. approve the issue
of the of Panama bonds,
which will be immediately, available
as the basis for additional currency.
I also approve the issue of $100,000,-
000, or so much as you may find nec
essary of SSO 3 per cent interest
bearing government notes, the pro
ceeds of the sale of which can be at
once deposited by you where the
greatest need exists, and especially
ent, is that our citizens should real
crops have to be moved. I have been
assured the leaders of congress are
considering a currency bill which will
meet in permanent fishion the needs
of the situation, and which I believe
will be passed at an early date after
congress convenes, two weeks herxe.
Business Conditions Sound.
“What is most needed just as pres
ent, is that our citizens should real
ize how fundamentally sound busi
ness conditions in this country are,
and how absurd it is to permit them
selves to get into a panic and create
a stringency by hoarding their savings
instead of trusting perfectly sound
banks. There is no particle of risk
involved in letting business take its
natural course, and tIL people can
help themselves and the untry most
by putting back into active circulation
Atlanta, Ga., Thursday, November 21, 1907.
the money they are hoarding. The
banks and trust companies are sol
vent. There is more currency in the
country today than there was a month
ago, when the supply was ample.
Fifty-five million dollars in gold has
been imported, and the government
has deposited another $60,000,000.
These are facts; and I appeal to the
public to co-operate with us in re
storing normal business conditions.
The government will see that the peo
ple do not suffer if only the people
will act in a normal way. Crops are
good, and business conditions are
sound; and we should put the money
we have into circulation in order to
meet the needs of cur abounding
prosperity.
“There is no analogy at all with
the way things were in 1893. On
November 30, of that year, there was
in the treasury but $161,000,000 in
gold. On November 14, of this year,
there was in the treasury $904,000,-
000 of gold. Ten years ago circula
tion per capital was $23.23. It is
now $33.23. The steps that you now
take, the ability of the government to
back them up, and the fact that not
a particle of risk is involved therein,
give the fullest guarantees of the’
sound condition of our people and the
sound condition of our treasury. All
that our people have to do now is to
go ahead with their normal business
in normal fashion, and the whole dif
ficulty disappears; and this end will
be achieved at once if each man will
act as he normally does act, and as
the real conditions of the country’s
business fully warrant his now act
ing. Sincerely vours,
“THEODORE ROOSEVELT.
“Hon. George B. Cortelyou, Secre
tary of the Treasury.”
Statement by Cortelyou.
Upon receipt of President Roose
velt’s letter of approval today, the
following statement was issued bv
the secretary of the treasury:
“The available cash balance of the
treasury, amounting to $240,156.-
441.85, is, with the exception of a
small working balance, now on de
posit in national banks in every state
tand territory in the Union, thus plac
ing it where it can serve the needs of
Ihe people as far as possible under
existing law.
“The secretary of the treasury,
with the approval of the President,
has announced an issue of Panama
canal bonds to the extent of $50,-
000,000. 4
“He has also, with the approval of
the President, availed himself of cer
tain provisions of the law applicable
to the transactions of the treasury in
times of emergency. These provis
ions are contained in section 32 of the
act of June 13, 1898, authorizing the
issuance of interest-bearing certifi
cates of indebtedness to run for one
year. Certificates bearing three per
cent interest wall be issued to the ex
tent, if necessary’, of $100,000,000.
Basis for Bank Notes.
“The Panama canal bonds will
serve as a measure of most substan
tial relief, for, among other things,
the law T expressly provides that they
may be used as a basis for additional
national bank circulation.
“The proceeds of the sale of cer
tificates provided for under the above
section can be deposited almost sim
ultaneously with their purchase, upon
, approved security. They can be made
directly available at points where the
need is most urgent and especially
for the movement of crops which, if
properly accelerated, will give the
greatest relief and result in the most
immediate financial returns. The ac
ceptance of subscriptions by the sec
retary of the treasury will be made
with special reference to such use.
“Both the bonds and certificates
-are attractive as absolutely safe in
vestments.
“These measures will, among other
things, enable the secretary of the
treasury to meet public expenditures
without withdrawing for that pur
pose any appreciable amount of the
public moneys now deposited in na
tional banks throughout the coun
try.”
Bids Asked for Panama Bonds.
The treasury circular inviting pro
posals for Panama canal bonds reads
as follows:
Treasury Department, Office of the
Secretary, Washington, D. C., No
vember 18, 1907. —The secretary of
the treasury offers to the public $50,-
000,000 of the bonds of the Panama
canal loan, authorized by section 8 of
the act approved June 28, 1902, and
supplemented by section 1 of the act
of December 21, 1905.
The bonds will bear interest at the
rat 3 of two per cent per annum, will
be dated August 1, 1906, id the in
terest will be paid quarterly on the
first days of November, February,
May and August. They will be issued
in denominations of S2O, SIOO and
SI,OOO of coupon bonds, and of S2O,
SIOO, SI,OOO and SIO,OOO of registered
bonds. They will be redeemable in
United States gold coin, at the pleas
ure of the United States, after ten
years from the date of their issue,
and will be payable thirty years from
such date. They will be exempt from
all taxes or duties frem the United
States, as well as from taxation in
any form, by or under state, muni
cipal or local authority. They will
be available to national banks as se
curity for circulating notes upon the
same terms as the two per cent con
sols of 1930, to wit: The semiannual
tax upon circulating notes based upon
the said bonds as security will be
one-forth of one per centum. They
Price Five Cents.
will bo receivable like all other
United States bonds as security for
public deposits in national banks.
The law forbids their sale at lower
than par, and provides that all citi
zens of the United States shall have
equal opportunity to subscribe there
for.
What Bids Must State.
Tn pursuance of the above an
nouncement, the secretary invites bids
for the bonds heretofore described,
which must be submitted to this de
partment on or before the thirtieth
of November, 1907. Each bid should
state the amount of bonds desired by
the subscriber, whether coupon or
registered, the price he is willing to
pay, and the place where he desire®
to make payment, whether at the
treasury of the United States or at
the office of some one of the assist
ant treasurers at New York, Balti
more, Philadelphia, Boston, Chicago,
St. Louis, Cincinnati, New Orleans or
San Francisco. All bids should be ad
dressed to the Secretary of the Treas
ury, Division of Loans and Currency,
and the envelope enclosing them
should be plainly, marked, “Bids for
Panama Canal Bonds.”
Upon receipt and classification of
the bids hereby invited, the success
ful bidders will be advised of the ac
ceptance of their bids and they will
be instructed as to the date upon
which payment is desired to be mads
at the treasury or some sub-treasury
of the United States.
In considering the bids, the bidders
offering the highest prices will re
ceive the first allotment. If two or
more bidders offer the same price,
those asking for smaller amounts of
bonds will receive priority in allot
ment. The department reserves the
right to permit bidders offering the
highest prices to increase the amount
of their purchases.
For the sake of uniformity, the
bonds will be dated August 1. 1906,
which is the date of the outstanding
Panama canal bonds, but interest on
the bonds of this issue will begin No
vember 1, 1907, and bidders will be
required to pay accrued interest on
their bonds from that date to the
date of payment.
The department also reserves the
right to reject any or all bids, if
deemed to be to the interests of the
United States so to do.
The bonds will be ready for deliv
ery upon receipt of the payment
therefor.
Prospective bidders desiring infor
mation not contained in this circular
may address the’ Secretary of the
Treasury, Division of Loans and Cur
rency, Washington, D. C., the assist
ant treasurers at Chicago, St. Louis,
New' Orleans or San Francisco.
GEORGE B. CORTELYOU,
Secretary.
—ConsUtiMon,