New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-28
TAFT BEFORE SENATORS
agreement Concerning Panama Cur
renCu Discussed.

Washington, Jan. 27-secretary Taft was again
before the Finance Committee OF the Senate to-day
and 1t was said by Senator Bailey, who introduced
the resolution regarding the monetary conditions In
Panama that the Secretary left nothing 10 investl-
gate.
Mr.. Bailey said he would like 10 give the secre-
tary OF War the opportunity to deny that he had
attempted to make an agreement as secretary OF
War which, If made by the Secretary OF state
would have required the approval of the Senate.
The denial was made by the Secretary who then
said
When Congress or the Senate, by law or treaty,
duty is 10 do something in foreign c9untry wh5cn
ment amounts to rnodus viyendi-which means
method of living togetheT-Whlch is Ipethod OF
getting a temporary dlfnculty.
He added that this government was much inter-
ss+ed in having stable currency established on the
istbnlus. and he thought the President had power
to authorize him TO make this temporary arrange
ment.
But think when an officer commits his govern
,,en+ IN maintain the parity of the currency Of
foreign power he has done something he had no
authority to do said Senator Bailey. secretary
Taft in reply, called attention to the agreement
itself, which was as follows:
The Istbnlian Canal Commission shall cooperate
with the Republic of Panama to maintain 9ne RST
inv ~ the fractional silver coinage OF the HepuDuC
OF FH o IT'S fnds at reasonable rates and on
terms which will tend 10 prevent the dlstut 0ahee ol
such parity
All members Of the committee agreed that
7,ror,isa 10 co-operate with Panama did not commit
this government TO maintain the parity Q; the sill
yer Of Panama, especially as it was set forth IN
what manner the Canal Commission agreed 10 iehu
its aid.
At the former hearing the Secretary salo 'hat ne
had thought the clause in the agreement by Whicn
the Canal Commission undertook 10 make the ran
ana currency legal tender and 10 MAINTAIN 'is
parity had been stricken out Commenting upon
the statement, Senator Bailey said that haa pseit
the only point on which he desired light. lie sdlu
that the contract with the bankers by which the
Canal Commission agreed to use the Panaman cur
rency on the isthmus was a business afTdhse
r7ent the Secretary Of War had the right 20 make
and the Finance Committee would not be warranted
IN Investigating whether the deal had been pront-
able one
Senator Bailey thought the Secretary OF War
should make himself understood. however concern
ing language used in a conference WIN the ran
aman fiscal commission for entering upon IhlS
arrangement The question had been raised wheth-
or the proposed arrangement could be made Win
out a treaty or whether the Secretary OF var hAo
not the authority to proceed under Inc cana4 act
In the proceedings OF that conferences SOU
Taft Is quoted as saying:
,js uG The authority which the Secretary OF
state would have is authority Whlcn neCsSse! L Lg
s IToiTeS Now we don't want to do that The
T0S[oHgS bicb never 90 to the Senate at all and
thjs TbinE might properly be made by me as
S51S, ~ war Representing the Isthmian Canal
Commission. with your government They have
the disbursement Of Sl5oGooo0 for TINS very pud-
nose and I do not why II Is not sufncient Sc
cuTjty for YOU if you adopt that law lcreaung the
Panama currency SYSTEM 10 say tllaI VIC WA
subscribe 10 its terms.
When this question was raised to-day there fol
lowed a long technical discussion OF the powers or
the Secretary Of War under the Spooner act ana Ihe
powers Of executive department 10 PIoeetea
Under authority granted by general law. senator
T2aHe, said he had serious doubt whether an eXScu-
ti5a Se7ceT could make a contract with foreign
royernn1ent which involved the essence OF treaty.
Senator Spooner replied that unquestonaply that
coul6 not be done but that Secretary TAFT had as
avowed any intention Of making snch an agree
ing that he had tried TO have the canal transerreS
- the Secretary Of State but that the secretary or
State was wise enough 10 decline. He then said
mat the language he had used In the conferences
,,es rather unfortunate. but that II had been his
nurpose to show the Panaman agents that this
t10varnT1eut was not entering into a treaty, but
Fnto a tentative agreement teTminable at any time