Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-11-17
SPOONER AMENDMENT
PHASES OF THE ACT WHICH
MIGHT WORK MUCH HARM.
Gov. Durbin Calls on President - Al
fairs Of General Interest Taken
to the President.


factor In that purpose. the important
questions now confronting the President,
the cabinet and the republican leaders in
Congress are whether they can proceed with
the work under the Spooner amendment.
adopted in the last Congress. or whether
1t will be necessary to enact new legislation
throughout. The Spooner amendment pro-
vided for the construction of the canal by
the Panama route, IL the President could
acquire from the republic of Colombia per-
petual control of strip of land not less
| than six niles wide. such terms as
might be deemed reasonable. Failing In
this the President should proceed to con-
struct the canal by the Nicaragua route.
| securing terms from Nicaragua and Costa
Rica that would be considered mutually
agreeable.
The bill authorized the payment to tho
Panama Canal Company of $40-0o0.0Oo for
the right, title and interest In the Panama
canal, and appropriated from the Treasury
Department wha ateyer money was necessary
to pay Colombia for her part of the trans
action. The treaty with Colombia agreed
to give that country $10,000,OOo for the In
| terests she should turn over to the United
States. This made a prospective cash paw
ment from the United States treasury Oh
$50 600 600 before real work began For the
&C instruction of the canal after title hao
been secured the Spooner amendment pro-
vided for the issuing of United States bonds
to the amount of s130Oo0,oo0 to meet any
contingency.
There is a wide difference of opinion
whether the administration can proceed
under the Spooner amendment in dealing
with the republic Of Panama. or whether II
will be necessary to nuliify that amend-
ment and enact other legislation. Whether
or not Senator Spooner who was at th0
White House to-day. discussed this question
with the President, he did not say.
A most important consideration for the
treasury Is the expenditure of the $6O000,-
600 in cash that is authorized under tho
canal amendment. The supposition 10 gen
United States agreed TO pay Colombia
would go to the new republic of Panama
TOR concessions. Atieast some part Of the
$1O,OgB0D allowed win be given to Pam
anna and the balance may be kept as an in
demnity to pay Colombia for WI !. she may
demand from this country. Colombia alone
may be offered $40, 000. 600 for what she has
lost. At any rate. there would be q big
cash payment to be made If the Spooner
amendment is considered as covering the
present situation.
Might Disturb Business.
Can this amount be paid without unset
Ting financial conditions to some extentf
The total available cash balance of the
Treasury Department a few days ago was
S223, IA ,399 but of this vast sum STA, aga
was in national bank repositories through
out the country. That makes a total OF
about $50. 100000 in the treasury proper.
The amount will probably change in favor
of a larger cash balance by the time this
country gets to the point of doing business
and making canal payments, but 1t will not
be above sec, 100000 at the outside, unless
the transaction is long delayed. Tradition
declares that there should always be in the
Treasury Department proper $50, 1000
with which to meet possible emergencies. 1t
is admitted, however, that the amount
could safely be reduced to $4,000, 600 or
less. OF the amount with national bank
repositories and carried as a liability of
the treasury there is a large sum to the
credit of disbursing officers. This could be
reduced, and the treasury could probably
pay of the canal payments $50 000000 out
of the funds now in hand But this would
leave $20OO0OO0 to come from the deposits
with national banks. How seriously would
the withdrawal of this sum disturb the
financial and business interests of the coun-
try?
Secretary Shaw has been placing money
with the banks for months because of q
threatened stringency in finances. If his
the ory was correct then, how can he afford
to withdraw from business such large
sum $20O00,0O0 at one time? Some
fEanciers say that the payments will not
have to be made before spring, or early
next summer, when business will be In
better condition to spare the money. but
others contend that the deficiency will
again be felt in the following fall ana
winter, when the republicans, according to
program, will not have provided new legis-
lation affecting finances.
On the other hand, it is said, new legis-
lation is decided upon for the canal, and
this should provide for the 1000 pay
ments by the sale of United States bonds,
leaving the deposits with the national
banks The democrats. these partisans
maintain might be furnished with a cam
paign issue of Importance relative to the
weakness of financial laws which would not
permit the government to take from banks
its own money without precipitatings serious
frnn hle oil her a - me n
afterward when business again became
brisk and there was a demand for money
to move the crops of the country.
Such is the problem confronting the re-
publican party and which il must solve IL
it intends to carry the canal negotions to
a decisive point without delay That the
President would be glad to have the honor
of settling the question of a canal and
doing something there seems to be no
doubt, and 1t is believed that If he Is en-
powered to act this country will be in pos
session of the canal route and be ready to
begin work before the middle of next year.
Canal at the Cabinet Meeting.
Practically only one subject was consid-
cred at today's session Of the cabinet Tho
Panama situation was gone over in all its
phases. Secretary Hay laid before the
President and cabinet the protest against
the action of the United States government
sent to the Senate by President Marroquin
of Colombia. The protest. which went into
the hands of Senator Frye. as president pro
tempore of the Senate, was turned over by
him to the Secretary of State, as the Senate
cannot receive petitions or protests from a
foreign government. BY Secretary Hay the
protest was laid before the President and
his cabinet. No decision has been reached
as to whether the document Will be Tor
maIIy received. That will lie finally with
the President himself. The nature and the
terms of the treaty to be made between
the Unitd States and the republic of Pana-
ma for the construction of the canal were
discussed at length. but no statement OF
those terms was made public
Canal Commissioners.
Seven commissioners are under the pro-
visions of the Spooner amendment. to have
charge of the building OF the canal. That