Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-01-24
TO PUBLISH TREATY
Senate Committee Considers
Colombian Convention.
VERY LONG DOCUMENT
MR.. SHAW GIVES THOUGHT TO
MATTER OF PAYMENT.
First Installments to Be Settled With
Cash-May Not Issue
Any Bonds.
VERY LONG DOCUMENT

The Senate corfmittee on foreign relations
today considered the Colombian treaty for
canal strip, but reached conclusion,
except to vote that 1t should be made pub
lie. 1t was stated that the treaty is a very
long document, containing much detail,
and that it will be some time before it is
reported to the Senate.
Will Probably Pay Cash.
When the United States is finally in the
position of being ready to purchase the
Panama canal from the canal company the
big undertaking of paying for the property
must follow, and in this Secretary Shaw
will be the principal figure. He is already
giving the matter of payment some consid-
GRAFTON. This government will have to pay
to the canal company sfo.0oO,0Oo as the
purchase price of all it's rights and possess
sions on the Isthmus of Panama. In addi-
tion to this there will oe about s103cD,090
more to be paid to Colombia in the way of
concessions and other expenditures. In
brief. Secretary Shaw will have to provide
for paying out s50.30O,O00 within short
time. He has practically decided that these
first payments will be in cash. direct from
the treasury.
The cash balance in the treasury is large
and, in view of the likelihood that the
treasury will not be called upon for long
time to assist in kee ping fiscal affairs of
the country out of trouble, he will be able
to bear the strain of a large payment.
There is over $150,030,00 of government
money on deposit in national bank deposit
taries but Secretary Shaw does not intend
to withdraw any Of this
May Not Have to Issue Bonds
Under the law he has the power to issue
per cent bonds to raise the money to
meet the extraordinary expenditures occa-
stoned by the payments to the canal COM
pany and to Colombia. but he does not care
n fnpraa he seht of he
if he can pay cash out of the treasury and
continue to meet the expenses incident to
the building of the canal in the same way.
1t may never be necessary to issue bonds
to build the canal. If the receipts of the
government continue to exceed the eXpen-
ditures each year as for the last few years.
The receipts abundantly large to meet
every large increase of money that may be
occasioned by the work on the canal.
Will Go Out Of the Country.
The main point against paying out $5o.-
100000 from the treasury is that most of
this money will go out Of the United
States and consequently will be taken from
business channels of the country. Although
it is now out of circulation by being in
treasury vaults it is where it can be pu.
out by Secretary Shaw at any time should
there arise stringency, either by ncreas-
ing the deposits with national bank deposi.
taries or by purchasing bonds. In fact
Secretary Shaw found many eXpedientS to
increase circulation last fall, and put out
millions of government money. which Is
still with the banks.
Secretary Shaw denies a story circulated
in Wall street that he will soon begin re-
funding per cent bonds by turning them
into per cents, which he has authority to
do. He says he has never made any state
ment that he will refund the per cents.
Annual Payment of $25O,oOO.
The treaty between the United States and
the government Of Colombia which was
signed Thursday by Secretary Hay and DR..
Herran as the representatives of the two
countries was transmitted to the Senate
yesterday afternoon. and by the Senate re-
ferred to the committee ON foreign re,a-
tions.
The treaty was read in executive session.
but the Injunction of secrecy was not
moved. BY the terms of the treaty the
United States agrees to make cash pay
ment of $4,000, coo in gold to the Colombian
government, and after the expiration Of
nine years to pay a rental Of $4,000
year. The lease of the strip of land to be
used for the canal and for canal purposes
is practically made perpetual the pro-
vision that point being that the first
thereafter in terms of 100 years at the
pleasure of the United States. The strip
is to be ten kilometers, or about six miles,
in width, and over this territory the United
ton, although it is EXPLICITLY specified
that Colombia does not surrender sover-
eighty over it,. The United States is to
have the privilege of free importation of
vessels and material to be used in the con-
struction of the canal. 1t also is given the
right to improve, use and protect harbors
at both the Atlantic and Pacific ends of the
canal The grant is made exclusive to the
Bnited States, and no taxes or rentals are
to be charged in addition to the gross
sums of $10,O00O0O cash and $3.50, 900 an
nually.
1t was not Secretary Hays intention to
transmit the signed treaty to the Senate
yesterday, but after the President and the
cabinet discussed it the conclusion was
reached that it would be advisable to send
it to the Senate at the earliest possible mo-
ment. The formal letter of transmittal
therefore. was prepared at once and late
yesterday afternoon the treaty was sent
to the Senate. The President and members
of the cabinet are confident that the treaty
will be ratified at reasonably early date
without encountering serious opposition