The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-07-06
ALDRICH EXPLAINS
PLANS FOR FINANCE
Tells Why Panama Bond
Issue Will Go Over to
Next Congress.

The Senate Finance committee has
decided TO postpone until the next ses-
sion of Congress the question of al
thorizing the issue Of additional bonds
to meet the cost OF the construction of
the Panama Canal, together with the
proposition of increasing to $3.50, 900, 900
the amount of certificates Of indebted
ness which may be issued by the Gov
ernment which is now limited by law to
500, 0O0.000.
Senator Aldrich. who besides being
chairman of that committee. is also
chairman of the Monetary Commission,
also has announced that he expects the
latter body to be able to make a pre-
Iiminary report some. time during the
next session which will involve some
different provisions with reference to
the character Of United States bonds
to be issued hereafter.
In making these important announce
ments. Mr.. Aldrich saId:
THE condition of the Treai ury is
such, and viii be such until Congress
shall meet again, that It will not be
necessary TO provide now for a differ
ent character of bOnus or for addi-
tional amount Of bonds. Under provi-
siOns of existing law, certifica -es Of
indebtedness to the extent of 100000. 000
may be issued if necessary. For the
Treasury have been equal 20 its dis
bursements: and IL IS perfectly clear to
my mind that no harm can some from
continuing existing conditions until the
meeting Of Congress IL December.
To Consider Cost.
1T then will be necessary to take I'D
questions involving the cost of the
canal, including its purchase, and as to
the character OF the bonds which shall
-
to everyone that We shall have to pro-
vide for an additional class Of bonds for
this purpose.
THE question Of the issue OF. bonds is
Of course also involved in any changes
which may take place In our monetary
affairs I hope the Monetary Commits
sion VIII be able, at some time during
the next session. 10 make at least a
preliminary report on the important
matters committed 10 H. This viii prob
ably involve some different provisions
with reference to tbs character of
United States bonds to be issued here
after.
THE committee have thought it de-
sirable to strike out all Of the provisions
contained in the House bill with refer
ence to bonds and to additional certf-
ficates of Indebtedness. and as TO the
cost Of the Panama canal, as they are
nos strictly matters which should have
consideration in this bill, and would
certainly lead to a discussion of some
length as to the character of the pro-
visions 10 be inserted
Treasury Is Safe.
'Inasmuch as no harm can come to
the Treasury along this line between
now and December feel very positive
on that point-the committee believes
those matters should be left until the
next session of Congress"
1t had been the original intention of
Senator Aldrich to include in the tariff
bill q provision for the Issue Of $50 O0O-
900 Of bonds to reimburse the Treasury
for money advanced in the purchase
and construction Of the canal There
are now outstanding $85. 100000 OF Pan
anna bonds Of former issues, practically
all of which are held by national banks
and bond dealers. They were sold by
the Government at an average Of about
l03, and bear interest at 2 per cent
About $650O00o0 Of them are on deposit
as security for national bank circuIa-
ton.
Under existing law Panama bonds
cannot be sold for less than par, and in
the opinion of Senator Aldrich and
Treasury officials a = per cent bond is
sue at this time would not sell for that
price.
They think IT viii be necessary. to in
crease the rate to 255 or per cent But.
unless the law is changed, Government
bonds carrying a higher rate of inter
est than per cent cannot be used by
national banks as security for circulG-
ton on the same basis of taxation as
the present per cent Panamas and
consOIs.