THE  PAST

19

advance  in  their  price  ”—  to  take  out  additional
note  circulation. 22  The  Treasury  on  November  17,
1907,  announced  that  bids  would  be  received  for  an
issue  of  $50,000,000  Panama  Canal  bonds  under  the
act  of  June  28,  1902,  and  $100,000,000  three  per
cent,  certificates  of  indebtedness  under  the  act  of
June  13,  1898  —  both  to  be  available  for  note  circulation. ­
  The  Treasury  further  announced  its  intention ­
  of  permitting  90  per  cent,  of  the  proceeds
of  the  bonds  and  75  per  cent,  of  the  proceeds  of  the
certificates  to  remain  as  public  deposits  in  depositary
banks.
The  mere  announcement  brought  the  desired  relief. ­
  It  was  ultimately  found  necessary  to  issue
only  $24,631,980  of  the  Panama  bonds  and  $15,-436,500
  of  the  certificates  of  indebtedness.  The
certificates  were  almost  wholly  absorbed  by  the
banks  and  were  used  for  increasing  circulation  or
for  securing  public  deposits.  Of  the  total  amount
issued,  there  were  purchased  by  the  Treasury  at  par
and  interest  $1,250,000  on  March  3,  1908,  and
$250,000  on  September  14,  1908.  The  remaining
$ i 3>936,5oo  were  called  for  redemption  at  maturity
on  November  20,  1910. 23
In  summary,  it  appears  that  of  the  six  occasions
upon  which,  prior  to  the  present  war,  the  Treasury
made  use  of  negotiable  short-term  debt  obligations,
the  first  four—1812-15,  1837-42,  1846,  1857  —
developed  from  inability  to  sell  long  term  bonds  in
22  Report  of  Secretary  of  Treasury,  1908,  p.  21.
23  Report  of  Treasurer  of  United  States,  1908,  p.  152,  1909,  p.
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