Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-11-18
THE PANAMA CANAL,
Commission is Exhausted Of
Funds.
AN URGENT MEASUREi
TO BE INTRODUCED IMMEDIATE
LY AFTER CONGRESS MEETS.
Secretary of Treasury is Authorized toi
Issue Bonds, but These May
Not Sell.
AN URGENT MEASURE

| Prospective members of the House com q
mittee on appropriations were today go-
| ing over the subject of appropriations for
| the Panama canal. Immediately upon tho
| assembling of Congress urgent de-
| ficiency bill will be introduced providing
! funds for the canal commission. The
question at issue now is whether this bill
shall appropriate the money out of the
| treasury general fund or ont of the pro-
| ceeds of the proposed sale OF bonds.
There are several nice points in the
case which will require careful considers
alton. The subject has already been taken
up with the President, the Secretary of
the Treasury and some of the House Lead
| ers The existing precarious condition of
| the money market enters largely into the
| situation and will have to he taken into
account.
Exhausted the Funds.
! The primal fact is that the canal com-
mission will by the first of the year be
| exhausted of funds and of necessity COM
PEELED to replensh its war bags There
| won't be a shot in the locker. as they saw
in the navy. This condition can be reme-
! died very readily under the general au-
! thority now vested in tire Secretary of the
| Treasury to issue bonds for the construc-
| tion of the canal. He is authorized to Is
| sue from llHne TO Time. as necessities re-
qulre bonds not to exceed in amount
| S13o.o00,Goo. They are to bear per cent
| interest. are not to be sold at less than
| par and no commission can be paid for
| handling them.
Members of the appropriation committee
who have looked into the case say that
| even after the Secretary of The Treasury
has the proceeds of these bonds in the
| treasury he will have to have a warrant
| from, Congress in the shape of an appro-
! priation bill authorizing the expenditure
Of the money. So, in any event. whether
the money is to come from the bond sale
or be taken directly out of the treasury, a
deficiency bill will have to be passed. and
as the canal commission needs the money
before January l II VIII have TO be one OF
the first acts of Congress.
Bonds Might Not Sell
But it is by no means certain that the
bonds can be sold. As every one knows,
the money market is very tight Banks got
as high as 20 per cent this week for specu-
lative money. These per cent bonds can
be used by banks to increase their circula-
ton but they are subject to tax of / per
cent when so used. Competent authority
in the Treasury Department expresses
grave doubts whether the market would
nibble at those bonds under present con-
ditons.
Undoubtedly the Secretary could sell some
of the bonds. especially they Will he in
denominations as low $50 which would
draw out the pennies from the savings
banks and the gold eagles in the old stock
ing underneath the brick in the left-hand
corner of the hearth. but it is quite a guess
ton whether they would attract high finan-
ciers.
There is another consideration: If the
money is appropriated out OF the general
fund it will come from the treasury hoard
I'm small lots and will not affect circulat ton.
II is not believed the Secretary would call
In deposits from national banks. If bonds
are sold, however, the money for their pur-
posits.
The passage of the urgent deficiency bill
will bring general discussion in Congress
of canal affairs The first question asked
will be how the $10,030,G0O which Congress
gave for running expenses, I'm addition to
the sl0,C00o00 to Colombia and S40,O30.000
to the French Panama Canal Company,
have been expended. The next question
asked will be whether the canal commission
has made up it's mind what kind of canal
ii proposes to dig-ocean level or locks?
No Disposition to Be Captious.
In this connection it may be said that
there is no disposition in Congress 70 be
querulous or captious over canal affairs, but
there is a wholesome feeling of interest in
the progress of the work. 1t is pointed
out that there has been considerable backs
ing and filling by the administration in
canal matters. and Congress has to pay
the fiddler it feels as II it could ask some-
thing about the tune.
Several different canal policies have been
proposed and disposed of from time to time,
and in point of fact, II might be said that
with the successive lightning changes Com
gress head is in a whirl. First, the COM
mission was going to make the dirt fly.
Tfren 1t was found that some steamboats,
and railway materials had to be bought.
Then It was decided that sanitation had TO
take precedence of everything, and not
much dirt has been made to fly yet II is
considered certain in legislative circles that
satisfactory explanations of all these mat
ters will be forthcoming. and Il can be set
down as a certainty that in mild and per-
haps bashful way Congress intends to ash
the administrative branch for some eXpla-
nations.
One suggestion has already been put for-
ward among representatives in the House.
and that is that special subcommittee or
the appropra tions committee ON canal ex-
penditures shall be appointed to form o
means of communication between the coui<
mission and the House.