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 cir 
culation. The Treasury further announced its in 
tention 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 re 
lief. 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. 
137-