New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-08

colombian paper as It would the plague. Nobody
on the isthmus will handle the worthless stuff.
oliver has been so long in that other money.
except goId- Is known the ignorance of any other
Delns SO extensive that among the natives Amer
tn licH H ana coppers are refused when offered
ne oiilcaIs ali realize that it will be long and
of gold is worth is 9acs Ty OS PuoIc Gp tS
hal0hal prejudice against paper will be the great
sst QHlculty in the way Of acceptance of the plan.
for the Panamans counting with absolute con
hdence upon the ratification OF the canal treaty
SG me early payment to them OF the $loG9oovy in
This matter of converting the currency system
from deprecated and varying silver basis TO
Is however, the smaller horn of the
financial dilemma confronting Panama Under the
supposed to have aggregated about 500 600 annually
ms am amount may not be exact: as the statistics
are very FAULTY. Half million is given, however.
as a safe estimate for purposes of calculation.
These revenues are derived from several sources
and were supposed to be- Of two casses-one for the
national and the other for the departmental
S Sn Colombia manased very successfully 70
gob9e al OF IL but the dictionary division is still
T f IN me oookkeepng The national share came
from an import tax on alcoholic liquors. from
nominal tax on real estate. and from the sale OF
bane to the isthmus. The departmental revenues
were varlouSly derived from tax on the produc-
Zee assessed against saloons. and from the sale
and the sources from which It derived do not
Include the sum Of $4,000 (god) annually paid by
the canal company for its concession. OF this
amount $4,000 (sol0 was supposed to go to the
department Of Panama; although the whole
Upon this amount it is useless figure. during
Colombia vent to the usurSrs and disc6unted this
concession Zee for term OF years which will not
Panama cannot count upon receiving any revenue
ments.
THE REVENUES MUST SHRINK
This introduces the most serious difficulty before
the new republic BY the terms OF the treaty with
Panama the United States does not begin to pay
the $4,000 annual rental for the canal zone until
the year 1912 Under the same agreement Colon and
Panama at yyhi
custom house business OF consequence, made. to
all intents and purposes. free for the entry OF
merchandise OF all classes.
NOW Senior Amador, Minister OF Finance, who
dominion. estimates that three-ffths. or 5000 OF
S az th9 revenues national and departmental were
the provisions OF the treaty with the United States
cease TO be collected. and the revenues of the
REPUBLIC will, in consequence. be cut down some
thing like 10000 (silyer) annually.
Figure as they willard they figuring hard
and very closely-the officials OF the. new republic
conduct the government on a sum under $500 oo5
(silver( year. To bring the expenses within that
sum the army is to be reduced TO mere nothing
ness; the navy is TO be- permitted lapse into an
almost visionary state and official salaries TO
service and tho preservation of satisfaction and
With all Of this Panama looks n deficit OF about
$1,000 a year squarely in the face. Under these
of hs sv IN s .94sa
alcoholic liquors, and by more rigid enforcement
TO hope for much from this source The saloons
here poverty stricken the
while the only liquors produced are what ia known
as "chica, the native whiskey. and q native white
rum. fairly good in quality. but by force OF cir
cumstanceS small in quantity and marketed at an
extremely low figure, The imposition OF tax on
personal property would avail nothing. as, aside
from very few people. the Panamans have no
property worth assessing; Is II possible to add
very much TO tho revenues by increasing the tax
on real estate. for to tax it much heavier than at
present would be 10 tax IT out OF the OF its
After explaining all Of these facts and producing
ample proofs for their statements the offciaIs OF
the government vii! very frankly admit that they
are In quandary. II would be impossible OF
course. for them to pay expenses out of the prn-
cipal payment for the canal concessions unfit the
payment of the annual rental enriches the public
treasury but this they loath to do. They are
too long headed In a business way to deplete ths
only asset they have. or are ever likely to have
after the establishment OF the regular government
but that idea is not looked upon with favor for a
loan would only increase the annual charges
against the government and sooner or later Tho
principal would have TO be paid
To relieve her condition and extrcate herself
from this financial dilemma IT is absolutely neces-
sary for Panama to have 100000. or thereabouts
OF the canal concession fee put at Interest II
is her only hope This sum- II placed at 4 per
cent. would. even after the republic goes 10 gold
basis. AFFORD 1t revenues ample for all It's legiti-
requirements.
The investment must be with the United States
secured by convention that the principal can
be levied upon by the republic. Just now
the United States is in the highest favor on +ba
in which she is held besides strengthenin her CON
troll and easing her solution OF the police and other
problems appertaining to dominion the canal
zone. If she should meet Panama half way in this
matter. BY making herself the custodian OF eight
tenths OF the canal concession fee she would ease
the financial strain upon the republic and
obligation except for the annual payment of a
reasonable interest