Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-01-25
NEED OUR OWN MONEY.
Sec. Taft Explains Money Matters As
Existing on the Isthmus.

Washington, Jan. H.-Sec. Taft was be-
fore the Senate committee on finance to-
day to explain the monetary agreement
entered into by the secretary and the
| sthmian canal commission with certain
| bankers on the isthmus as called for by
| a resolution Endorsed by Senator Bailey.
| Under this agreement the commission is
supplied with currency by these banks
as it is needed for the payment of sala-
| ries and TO meet other urgent demands in
| the canal zone, which relieved the COM
! mission of the necessity of shipping cur
rency from New York
when this agreement was made said
| the secretary. II had in mind not to
usurp the treaty-makin:; lowers of the
| United States Senate. but my letter to the
Panama fiscal agents reveals the frailty
of the human memory. If ! had been
asked concerning the letter I should have
said without hesitancy that tn" portion
agreeing 10 maintain the parity of the
fractional silver with the gold standard
had been struck out. But it is there and
my name is signed to it. must admit it. -
The secretary added that So far as the
wOrkins, of the agreemen. was; concerned
no attempt had been made by the Pan
aman government to "lrry any part OF
the agreement into effect beyond that
which required the commission to give
general circulation to the coinage within
the zone.
In explanation of his visit to the 18TH
mus when arrangements for the monetary
agreement were entered into, Sec. Taf,
said the trip was decided upon by the
President, who thought the presence of
n cabinet officer might lissipate Il hostile
feeling tina: was rising up against the
United States.
'"This hostile feeling" said the secreta-
ry. was the result of a mistake arising
through haste in organizing the canal
zone in applying the DinGley tariff act to
the zone. After a time the republic, fear
ing the effect of the Dngley act on their
revenue. made difficulties for our repre-
sentatives in the canal zone
The secretary explained these difficult
ties which were the refusals of the re-
public to live up to certain local agree
ments. This situation. he said. caused
him to suspend the operation of the Ding
ley act SO far as it applied to the canal
zone.
1.-THE act,'' he added, twas put in force
by Executive order and certainly it could
be rescinded in the same manner"
He held that the monetary agreement
could be revoked at the will of the canal
commission.
He added: But have been informed
by the bankers that they will not con-
sent to renewal of the agreement which
expires in April. They claim it is INSULT
GENTLY compensatory
What will we do when this agreement
expires?" asked Senator Allison.
I'VE will have to make new one on
more favorable terms to the bankers. pay
ing them a higher rate of exchange"
said Mr. Taft. 1T amounts to a pre-
MUM" he added.
would it not be better to provide coin
age of our own for use down there, about
si.0000OO / was going to say. but perhaps
s.. cor. COO" asked Senator Teller
"I think So" said the secretary. 'rI
think we should be Independent in the
matter of coinage to meet disburse-
ments."
The secretary said that Congress was
responsible for conditions under which
the commission had to operate through
/ its failure to enact legislation. and that
Congress could expect mistakes to be
made.
The committee will continue tho cXami
nation of the secretary on Saturday.