The Providence news. (Providence [R.I.]) 1891-1906, 1906-01-25
SPECIAL
COINAGE
FOR Canal.

Washington. Jan 25.-Secretary Taft
was before the senate committee on
finance yesterday TO explain the monetary
| agreement entered into by the secretary
and the isthmian canal commission with
certain bankers on the isthmus, as called
for by resolution indorsed by Senator
Bailey.
Under this agreement the commission is
supplied with currency by these bankers
as 1t is needed for the payment OF salaries
and TO meet other urgent demands in the
canal zone, which relieves the commits
sion OF the necessity Of shipping currency
from New York
when this agreement was made" said
the secretary, ~ had I'm mind not to usuru
the treaty-making powers of the United
States senate, but my letter to the Pana-
ma fiscal agents reveals the frailty of the
human memory.
IF l had been asked concerning thL.
letter | should have said without hest
fancy that the portion agreeing to main
tain the parity Of the fractional silver
with the gold standard had been struck
out. But II is there ana my name is
signed to IT, | must admit it,
The secretary added that so far as the
working Of agreement vT7rs concerned
no attempt had been made by the Pana-
manian government to carry 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 to his visit to the 18th
mus, when arrangements for the none
tary agree ement were entered into. Secre-
tary Taft said the trip was decided upon
by the president, who thought the pres
ence Of cabinet officer might dissipate
a hosule feeling that was rising up
against the United States.
COULD EXPECT MISTAKES.
This hostile feeling" said the secre-
tary was the result of mistake aris.
ing through haste in organizing the canal
zone, I'm applying the Dingley tariff act
to the zone.
After n time the republic fearing tho
effect OF the Dingley act on its revenues.
made difficulties for our representatives
on the canal zone"
This situation. he said, caused him 10
suspend the operation OF the Dingley act
go far as 81 applied TO the canal zone
THE act" he added. was put I'm force
by executive order and certainly IL could
be rescnded In the Same manner" lie
held that the monetary agreement could
be revoked at the will OF the canal com
sion. He added:
but I have been Informed by the hank
ers that they will not consent TO n re-
newal q. the argument. which exuires in
April They claim II is not sufficiently
compensatory
What will we do when this agreement
expires" asked Senator Alison
1--WE Will have "a make new ono on
more favorable terms TO the bankers
paying them higher rate OF exchange"
said Mr. Taft. 1T amounts to n pre-
mium." he added:
Would IL not better 20 provide coinage
OF our own for use down there about
100000 I was going 20 say. but perhaps
S3,e0.o00?' asked Senator Teller.
81 think So said the secretary. II
think We should be independent in the
matter OF coinage 90 meet disbursements.
The secretary said that congress vas
responsible for conditions under which
the commission had 20 operate, through
it's failure 10 enact legislation. and that
congress could expect mistakes 10 be
made.
The committee will continue the exam
inatlon OF the secretary on Saturday.