The Savannah morning news. (Savannah, Ga.) 1900-current, 1904-01-06

finance, who was departmental treas
urer during the Colombian dominion,
estimates that three-fifths, or 100000.
of all the revenues, national and de-
partmental, were derived from the GUS
tom duties. This sum will, by the pro-
visions of the treaty with the United
States. cease to be collected, and the
revenues of the new republic will. in
consequence, be cut down to something
like 100000 (silveD annually.
Figure. as they willard they are
figuring hard and very closely-the Off
Gals of the new republic cannot dis
cover how it will be possible for them
to conduct the government on sum
under 100000 (silver) a year. To bring
the expenses within that sum the army
is to be reduced to mere nothingness;
the navy is to he permitted to lapse
into an almost visionary state, and off,
cial salaries are to be fixed at the low
est limit consistent, with good service
and the preservation of satisfaction and
contentment in official circles.
With all of this Panama looks de-
felt of about $300,000 a year squarely in
the face Under these circumstances
it is not difficult to understand the des-
peration of her immediate financial
prospects.
No Relief in Sight.
The situation may be eased slight
ly by increasing the tax on saloons,
and on the production of alcoholic
liquors, and by more rigid enforce
ment of the law in such respects,
though it is impossible to hope for
much from this source. The saloons
here are as poverty-stricken as are
the people, while the only liquors pro-
duced are what is known as "chica,"
the native whisky, and native white
rum fairly good in quality, but by
force of circumstances small in guam
tity and marketed at an extremely
low figure The imposition of a tax
on personal property would avail
nothing, as, aside from a very few
people, the Panamaians have no prop
erty worth assessing; nor is it pos
sible to add very much to the reve-
nues by increasing the tax on real
estate, for to tax it much heavier than
at present would be to tax it out of
the hands of it's owners.
After explaining all of these facts
and producing ample proofs for their
statements, the officials of the govern
are in a quandary. Tt would be i'm
possible, of course, for them to pay
expenses out of the principal pay
ment for the canal concessions until
the payment of the annual rental en-
riches the public treasury; but this
they are loath to do. They are too
long-headed in a business way to de-
plete the only asset they have, or are
ever likely to have. : 1t would, too, be
Ill f<,,. 20
the establishment of the regular gov
eminent; 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 the principal would have to
be paid.
The United States Must Help.
Two other reasons present them
selves to forbid acceptance of either
of these plans, and that is the reluct-
anee of those in authority to have any
large sums of ready cash not abso-
lutely needed for current expenses or
for reforming the currency system
brought into the country. Senior Es-
panoza, of the junta, explained this
reluctance in an interview which 1
quoted in my first letter. In
that interview Senior Espanoza
very frankly stated that the
Panamaians were not to be trusted to
protect $10,000,000 in goId from being
wasted, misapplied or from becoming
a bone of contention between rival
factions and an incentive to revolu-
tions. At the same time he explained
that the only hope of the republic in
a financial way was to evolve some
scheme by which all except the ST.
100000 needed for reforming the cur
rency shall be held out OF Panama
as national interest-bearing asset,
so safeguarded that it win be secured
in perpetuity to the government, no
matter who may be in control Senior
Espanoza stated a simple fact in the
latter part of that interview.
To relieve her condition and extri-
cate herself from this financial dilem-
ma it is absolutely necessary for Pan
anna to have $4,000 900, or whereabouts,
of the canal concession fee put out at
interest. 1t is her only hope. This
sum- if placed at per cent, would,
even after the republic goes to gold
basis, afford it revenues ample for all
its legitimate requirements. But how
can it be done? The government,
neither now nor hereafter can so in
ly safe from succeeding sets of Off
Gals, and here the possibility of the
dishonest and INSCRIPTIONS obtaining
control of affairs is always to be con-
sldered. So long, therefore, as this sum
is controlled by Panama it will be la
bic to waste and dissipation, thereby
leading to the destruction of the re-
public's only asset.
For the desperate financial diem
ma confronting Panama there is but
one relief. The investment must be
with the United States, and so secured
by convention that the principal can
never be levied upon by the republic.
lust now the United States Is in the
highest favor on the isthmus. 1t would
materially increase the respect in
which she is held, besides strengthen
ing her control and easing her solu-
ton of the police and other problems
entertaining to dominion over the ca
nal 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 new |
republic. and, while keeping $S,000,000 |
in her pocket. incur no obligation ex-
cept for the annual payment of a rea-
sonable interest. There is no other |
way out for Panama, and unless some
thing of this sort is done the new re- |
publics plight win soon be most un-
one.
---e-1n-e-
Cuban National Lottery.
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