The San Francisco call., 1903-12-28
United States Will Answer
the Colombian Minister'S
Protest With as Little De-
lay as VIII Be Consistent
SHAW WILL ISSUE
no BONDS ON CANAL
Panama Waterway to Be Paid
Fer With Money Drawn Di-
rectly From Banks After the
Ratification of the Treaty
Special Dispatch to The Call

CALL BUREAU, 1906 G STREET, y.
VI. WASHINGTON, Dec. 27.-State
Department officials have under consid-
Grafton rhe nature Of the reply which
is 70 be made to the note Of General
Reyes. Hhe Colombian Minister, regard
ing the action Of the United States in
connection with the affairs growing out
Of the secession of the Department of
Panama Just when the answer is TO
be ready is not definitely known. Gen
eral Reyes is anxious for an early re-
DIV and the State Department officials
are equally anxious that the affair shall
be disposed Of as quickly as is consist
ent with a careful preparation Of the
administration answer.
The Colombian note contains state
ment Of the grievances which that
country claims 70 have suffered under
the Interpretation put upon the treaty
Of 1876. il discusses these grievances
in calm and dignified tone and sets
ont reasons which, General Reyes
claims. supports the ccatention he has
made. The probability is that there
viii be several diplomatic exchanges
between. Colombia and the United
States before anything like conclu-
sion Of the discussions Of the questions
st issue is reached.
No CANAL BOND ISSUE.
With an available cash balance Of
s226. .803. .1zS at the command Of the Sec
retary- OF the Treasury, with Sl6S,132.s55
OF this amount loaned to banks without
i-t,presr. and with the current receipts
of the Government running ahead Of
the expenditures. il is not probable that
the administration on the eve Of the
Presidential election viii yield TO the
wishes of certain financial interests and
increase the interest bearing debt Of
the Emitted States $4,000, 600 to meet
the Panama canal payments. These
navments Of 100000. 900 the French
canal company and S10.000Oo0 to the re-
public Of Panama viii be MADE lmllle-
diately after the ratification OF the
pending treaty by the United States
Senate O.
Though Secretary. Shaw has. not yet
made aany statement as TO how ne pro-
poses 10 make the payments, 1t can De
said that he has no present intention OF
issuing bonds. On the contrary, he mas
already begun preparations for max
ing the payments direct from the Treas
t1rr His first step was to augment the
available cash balance by gradually re-
ducing the funds set apart to the credit
ffhe various disbursing officers of the
Government. which were far in excess
Of their immediate requirements. In
this way about 50. 900 600 has been added
20 the available cash balance. This
process will be continued until at least
$4,000. 900 more shall have been added TO
the available cash, bringing it up to
about s23e. .O00.oee -'
BANKS TO SUPPLY MONEY.
The present expectation at the Treas
ury Department is that the banks viii
be drawn on for a considerable part Of
the canal money. The payments prob
ably viii be made just at the season Of
the year when the funds withdrawn
from the money centers for crop NOV
ing purposes are flowing back in large
volume and; when. consequently. a de-
crease in the Government deposits in
the banks can be made with the least
disturbance to business.
As a matter Of fact, if the payments
are made at a time when Europe owes
the United States, the purchase money
viii not be Immediately Withdrawn from
circulation in this country. The pay
ments 10 the French company and the
republic Of Panama will be merely
transactions in the international ex-
change market.