The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-13
HOW THE FIFTY MILLION
DOLLARS FOR PANAMA
CANAL WILL Be PAID
FormalitieS to Be Observed by the
Government in This Finan-
cial Transaction.
MIR. HAYS INITIATIVE
Signature of an Indianian, Con
troller Tracewell, an Indis-
pensable Feature.
Special to the Indianapolis Journal.

cpceAd4 10 NJ lHAldudlOils JOURNAL
WASHINGTON. March 12-The payment
by the United States Of the fifty millions
OF dollars for the Panama canal properties
and franchises-forty millions to the Pan
anna Canal Company and ten millions TO
the Republic OF ~Panama-wi1 be a pretty
transaction.
II will be notable by comparison, as we'll
rs interesting 20 the layman not familiar
with the processes of governmental settle
ments. The United States paid fifteen mil
lions of dollars for the Louisiana territory,
seven millions for Alaska and twenty mil
lions for the Philippines. The gross re-
ceipts OF the government in 1916 aggregat-
ed twenty-nine millions of dollars, or TWEEN
ty-one millions less than we pay for this
diminished waterway across the isthmus.
-Four times only from 1860 to 1896 did the
United States produce in one year gold
enough 10 make these initiatOry payments
I'm the ship canal business and only twice
during that period produced exceeding that
amount Of gold and then by a paltry mil
hon or so. AS late as 1896 this country's
production of gold for the twelve months
was worth only three millions more than
the present obligation to the French Canal
Company and the infant republic.
1t is presumed that this account will be
closed in the very near future and there
are possibly some pretty well Informed
persons who imagine that the Panama
Canal Company and the Republic of Pan
ANA will back up their carts to the doors
of the United States treasury and receive
therein their fifty millions of dollars in
gold. Strictly speaking. these parties have
this right. though in case they availed
themselves of it they would have to bring
oI~~x ~vftb tbaro Gro frafgbt GAYS of or1f-
nary burden in which to carry their treas
IRE away.
The truth Of the matter is that very lit
tie, If indeed any, of the shining yellow
coin will play a concrete part in the trans
fer of the fifty millions from Uncle Sans
strong boxes to the Golfers of the parties
of the second part. The amount of gold 10
be actually handled in the process of pay
ment will depend upon the conditions and
bank balances in the United States and Eu-
rope while payment is In course OF compile
ton.
THE FORMAL PROCEDURE.
The Initiative, in the ordinary course of
such settlements, will be taken by Secre-
tary of State Hay. All treaty stipuIations
as between the United States and the Re
public OF Panama having been complied
with, and the SpoOner act and any neces-
sary subsequent legislation by the Congress
Ol Tie OHllcQ olditS HdNllB Dttn July I'll
crossed, passed and signed by the proper
officials. ending with President Roosevelt,
the secretary. OF state, either with or with
out request from the fiscal agents of the
Panama Canal Company and the Republic
OF Panama, will certify these accounts to
the secretary of the treasury.
Secretary Shaw, technically speaking, will
be in complete ignorance of these items of
forty and ten millions. respectively, alleged
70 De due certain French gentlemen and
others, and will refer the matter to the
auditor for the State and other depart
ments, who at this time is Mr.. Ernest CT.
T1mme. Auditor Timme Will have before
him the Spooner act, authorizing the Pres
1dent TO negotiate for the canal properties
and the right of way. the treaty with the
Republic OF Panama, the contract with the
Panama Canal Company, the opinions of
Attorney General Knox and the titles ten
dered by the conveying parties. If he finds
satisfactory evidence OF the validity of
the claims and full authority conferred for
the payment Of the same, Auditor Timme
rotary Shaw.
Secretary Shaw will then have the divi-
sion of bookkeeping and warrants of his
department prepare warrants authorizing
the assistant treasurer at New York to pay
the sums indicated TO the proper parties.
duly identified. Secretary Shaw will sign
these warrants. but they will not be valid
until countersigned by Robert j. Tracewell,
controller OF the treasury. who must O.. X.
these bills before they are PAID, and if he
does rot o. X them they will not be paid.
since he has the right of veto in such mat
tiers. unless the same thing should happen
4 4lAA WHICH DtlEll Olc II Ills predecessors
who declined to attach mis- signature to GER
tain papers which were considered legal bv
his superiors. There were a number of
stormy conferences. according to the story
some peremptory orders 10 the controller.
and his final standing pat with the remark
that ne couldn't change the law.
Very true, was the answer which
reached him next day, but we can change
controllers"
MIR. TRACEwELLS PART.
1t is expected. however. that Controller
Tracewell. after close scrutiny. will find
these claims in proper form and valid and
pass them along for the final signature of
Ellis II. Roberts. the treasurer of the
United States, and then the precious bits
of paper will be ready to hand over to the
persons authorized 10 receive them.
In case anything prevents the presence
of Secretary Shaw. the law provides that
az assistant secretary may sign warrants.
The warrants to pay for the Philippines
were signed by Assistant Secretary Frank
A Vanderlip. There were four of them
for hve millions each and they were handed
sian ambassador. acting for Spain. who de-
posted the warrants in the Riggs National
Bank. OF Washington. The Riggs Bank for
warded them 10 the National City Bank.
Of New York, and it collected the money
from the subtreasury at convenient periods
and paid it TO the Spanish agents in Lon
don through drafts on its English CORE
Epondents- Necessarily the great majority
OF the treasury warrants are signed by the
assistant secretaries in order that the sec
rotary himself may have time for more i'm
portant duties Just prior to the resigning
OF Assistant Secretary Allies he finished a
task of signing 5000 warrants made neces-
ssry by a single act of Congress, a similar
batch having come TO the assistant secre-
tary from the same source the previous
year. 1t is highly probable. however,
that Secretary Shaw Will attach his
signature TO the canal warrants in ques-
ton.
As TO the actual money TO be used in
meeting the warrants drawn for these
first payments on the canal. IL has been
: scattered throughout the United States in
national banks designated as United States
REPOSITORIES Here again there will be
no counting and transporting OF great loads
OF gold coin. The secretary Of the treasury
having called upon the various United
States repositories for a certain percentage
OF the government funds charged to~them.
, the banks will simply mail drafts on the
New York banking houses with which they
do business and on the books of which they
always have 10 their credits amounts suf-
fciently large 10 meet ordinary demands.
Thus will the Treasury Department in COM
paratfvely a few hours have TO its credit
In national banks in New York and i'm the
subtrcasury there the fifty millions of dol
lars needed.
IL Is not unlikely that these first canal
warrants In question Will be drawn for ten
millions each and deposited in some five diff
ferent New York banks. and here again