Evening star., 1909-07-06
NOT TO ISSUE BONDS
No Necessity for Government
Action During Recess.
Mo Al nRIcH GIVES REASON
Mr.. ALDRICH GIVES REASON
Says Monetary Commission Will Re-
port Next December.
FINANCIAL INTERESTS PLEASED
Currency Reform Declared to Be Alb
solutely Essential-Money Easy.
Demand for Cash.

mittee on finance is of opinion that there
will be no necessity for a bond issue
by the government during the recess of
Congress. even for Panama canal ex-
penditures. He further entertains the
hope that the monetary commission. of
which he is chairman, will be able to
make a preliminary report early in the
December session of Congress. recon-
mending changes in the currency laws.
Senator Aldrich is of opinion that it
up the whole broad question of bond is
sues for the canal construction. He
thinks it is inevitable that an additional
class of bonds will have to be authorized
for this purpose. and as the question
would be in a sense correlated to the
currency policy of the government it
would be appropriate to postpone its
consideration.
Certificates of Indebtedness.
If in the meantime the canal or the
government needs money, there is ex-
listing authorization for the issue of
S1OO,OOOOOo of certificates of indebtedness
which will suffice as an emergency meas
ure. Senator Aldrich notes with salts
faction that the receipts of the treasury
for the last two months have been equal
to it's disbursements and there is no
cause for alarm.
His statement that the monetary COM
mission may be able to make a prelim-
mary report early in the next session
will be very gratifying, it is said, to all
financial interests. The pendency of
the tariff bill has subordinated attention.
which otherwise would have been at
n nr0hlpmS.
revenue measure, but as soon as that Is
off the hooks there will be a renewal
of discussion of questions which the mon
etary commission set out to solve, and
financial interests will expect results.
Want Commission to Act.
The commission, it will be recalled.
spent summer abroad last year, study
ing the financial systems of European
governments. The result was something
on par with the report made by the old
New Bedford whaling skipper to his
owners after a two-year cruise for oil,
coming back empty; he dld not get any
oil, but he had bloomin' fine sail. :
Financial interests are already beginning
to clamor for the commission to produce
Currency reform is declared to be abb
solutely essential, and 1t is said that il
the expected boom of prosperity attends
the practical operation of the new tariff
law, the necessity for an expansive and
responsive currency will become more
urgent and obvious Most of the great
captains of industry who have ventured
opinions in the past month have agreed
that the rising tide of industry will set
in with a rush as soon as the tariff
question is settled, and the first call viii
be for a more elastic currency. system.
Money Is Now Easy.
Money has been easy for some time
partly because it was being withheld from
investment pending the settlement Of the
tariff question. A striking example of the
when the Treasury Department called In
the bulk of its deposits with national
banks. This action, which a year ago
would have produced stringency. did not
make ripple in the money market and
went practically unnoticed.
But the day the new tariff law goes
into effect it is confidently expected that
there will be starting up of mills. moving
of freight and general activity of bust
ness. which will call for ready cash. The
next thing will be the moving of the
promised bumper crops. and a lively
scramble for cash will be on.
The monetary commission will begin To
hold sessions as soon as the statesmen
who compose ii have had little vaca-
some of the sleep he has lost since the
18th of March. The commission will
probably hold some sessions in New York
and close up its preliminary report after
the members assemble in Washington
for the December session of Congress.
Disappoints Speculative Interests.
Senator Aldrich's statement that there
will be no bond issue during the recess
of Congress will, it is declared, disap-
point those exclusively speculative in
tercsts which dearly love bond issue
and which have been counting on a def
icit from the new tariff law that would
force the government to their favorite
recourse.
The new corporation tax will bring in
material sum of revenue for the time
between the enactment of the law and
December 10. 1910. but Chairman Aidrich
still is of opinion that pending the re-
ceipt of this increment the tariff act
and the internal revenue laws will suf-
flee to supply the government with need
f,.r