New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-02-18
MONEY FOR THE CANAL
po,ts .4lready Beginning TO Return
DrDosits 10 the Treasury
-, - rnInrNE -

Zen FEB. r--N-arionsl banks having
- money on deposit have begun 70 re
:. che Treasury Tire 20 per cent % their
-,1,--s which vas requested by Secretary shaw
- .re eztraor1i-a-~ expenses connected
%. -. Panama Canal payments. No of1-isi
-, rss vet been given that this money must
- IN Aut the Secretary permits those 50
- - forward rcnittances al onoe 20 tho
.-----o-x ba-lss designated by him 70 receive
- within q Jew days Secretary shaw WIN
-.,-.ry i.s1e circular calling on the banks
-. i've rot anticipated the orSeT 20 make
- garments without further delay.
- million dollars have already been paid
,,s are now subject 70 the draft % the
..-r-v peDartre-- When the DEPOSITS are
= e ten New-Yo-k banks WI hold $50
e.,ooo n governu-ert money. which VII oc an
- inward the payment Of the FIRST 5GeHooeo
,.,-sI expenses As previously announced in
-, tribune q further call Tor 10 per cent VIII
-.ss On the go~ernuenr REPOSITORIES should
:. so-rd that the payment 81 the remaining
soseaeoo fro-, funds now IN the vaults Of the
--,,n-v would be TOO severe q strain On the
.ssh balance.
:. view q the assured ratification of the
..,..v next week. 4 is assumed that the pay
.,.-. ~ TIE 100000 to the Panama Canal
r,-,srv Tor It's property rights on the isthrnus
- -. 100000 70 the Republic Of Panama
o. concessions VII not be long delayed. 40
80. has actually been set, however. and Seer
,,-v shaw will be governed solely By the ezi-
rsncies Of the case
When the Treasury Department made the call
o.. % rer cent q government deposits eight
h,,,s-es national hanks had in their possessi On
.---,v,-,s+slv slC0Oo0O00. Allowing for with
s-svsl o. the 100000 required. there would
Ell rerrsin subject 10 the call OF the Score
,s-y should ne deem 81 necessary. Sl30oo0ee0
~ available cash balance IN the Treasur Is
ssnqs-ouslv close 70 the imaginary danger line
To- many wears succeeding Secretaries have
s,,bs--sbes 70 the tradition that the depar' 'srt
sb,uls have working balance OF a. least 500.
Oe0O0 Ths available cash balance n the
T-sssr-y proper to-day approximate S6409o.-
O0 and the payment q S20Oo0Ooo or tbs Pan
ana Canal would reduce this 70 S4o0o00oo
100000 below the figure that hnauciers in
rst absolute security requires.
Other extraordinary payments are about %
.sU dus. Congress recently enacted legislation
authorizing g government loan OF 100000 20
the St Louis Exposition. This. with other neces-
ss-v disbursements would reduce the cash bal
anne 70 S350t0000 In round numbers, y the sec
were not made. Ev making that call, Secretary
shaw wouil insure The withdrawal from govern
nent repositories q an amount sufficient 70 con
tinue the cash balance above the traditional
danger line.
The expenses Of constr citing the canal VIII not
Re uald from the regular income Of the govern
rert. II the SpoGuer amendment Of the last
session o. Congress is not ad5udged sufficient
Congress- viii take action soon after the rata
cation Of the canal treaty next week 10 provide
Tor the Issue q S150O000o0 . per cent bonds 70
furnish money 10 construct the canal X Is not
expected that al the bonds VIII be issued a. one
time as the government VIII not care TO pay in-
-e~est on 8 large sum Of borrowed money that
viii not be IN The bonds VIII be put on the
market only as the money is needed for con-
etrrction probably S5O0UuC0 or 100000 al a
time They viii be disposed Of al the best figures
obfsfnable. That they may be made attractive
20 national banks basis Tor Circlls ton
national bank currency issued on them as Sc
curIty VIII be required &c pay only one-ha. Of
Der cent taxation. That Is the law as 70 the F.
Der cent bonds now outstanding. but when ths
Spooner amendment was passed this provision
ves overlooked and Secretary Shaw has asket
that the Necessary authorization be given 70 hin
II this were not done the availability OF tn
BONDS would be curtailed. The outstanding
per cent bonds are now selling az lower fg1r
than for several years