New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-18
FINANCING THE CANAL.
Further Legislation May Be Neces-
sary for the Operation.
IrRoM THE TRIBUNE BUREAU

Washington. Nov. ia serious question, TO
which the leaders of both political parties are Civ
ing careful thought. is whether the enactment of
conservative financial legislation may not be neces-
sary when the canal project becomes an accom-
plished fact and this government is required to
expend 100000 in cash In accordance with the
terms of the legislation enacted in the last Con-
gress This question is, of course. based on the
assumption that the United States will negotiate
with Panama a treaty containing provisions and
obligations corresponding to those Incorporated in
the Colombian convention.
The bill passed by the With Congress author
lied the payment to the Panama Canal Company
of S4oeoOOO0 for its right title and interest in the
Panama Canal and Railway and appropriated fIGm
the treasury whatever money was necessary to pay
Colombia for her part Of The transaction The
treaty with Colombia agreed TO give that country
sl0,00090 for interests she should to the
United States. Thus the payment Of $50 10000 was
involved before actual work on the canal was be-
gun For the construction of the canal after title
had been secured the Spooner amendment provided
for the issue of United States bonds to the
of sl50.0000oo to meet any contingency.
A recent statement of the available cash balance
of the Treasury Department showed 1921 3s9. Of
which s173, 32S,4 s4 in the national bank de-
positores throughout the country. This leaves a
total OF s5O0oOO00 in the Treasury proper. 1t has
been held from time immemorial that in order to
meet all possible emergencies, at least $50 600 eco
Financers believe, however. that no danger need
be apprehended should the cash balance be reduced
servativa limit OF the amount with national de-
positories and carried as liability of the Treasury
there is large to the credit of disbursing
officers While this amount could be materially
reduced II is improbable under existing conditions
that the Treasury Department could safely pay out
more than $4,000 900 for canal purposes This would
leave S200Co000 which would of necessity, have to
be withdrawn from the government deposits with
national banks.
Both Republican and Democratic leaders are CIV
iT. to this situation the most careful consideration
The withdrawal of this enormous amount of money
considerable extent the financial and business in
terests of the country 1t is recalled that recent
threatened financial stringency neceSsitated the
posit of internal revenue receipts in banks
and the acceptance collateral Of other
than government bonds. In the opinion OF some
of the abiest financiers, such strngency is likely
each fall and could not but be seriously
AUGMENTED by the withdrawal from circulation Of
so, 0l0 900.
Naturally this situation leads to the question
Would II not be well to form of legis-
lation which would facilitate the process whereby
national banks can increase their own circulation
and thus render them capable Of meeting any
emergency which may arise a result Of extrane-
demands the Treasury reserve?