The National tribune., 1909-12-30
CONDITION OF
THE TREASURY.
Secretary McVeagh Optimistic.
Panama Canal Bonds to Be
Issued.

Secretary of the Treasury MacVeagh
declines to take any alarmist views
about the condition of the Treasury.
After he and Senator Aldrich had con-
suited with President Taft, of a recent
afternoon, about the prospects of issu-
ing bonds and about the necessity for
legislation, there was an output of rath-
er striking stories about the working
balance of the Treasury being down to
the danger point.
The Secretary is very matter of fact,
frank and courteous about such impor-
tant matters in his Department. The
following afternoon the door of his in
ner office opened and dozen news
paper correspondents were invited in.
For half an hour the Secretary talked
things over with them in his character
istic fashion He says the working bal
ance of the Treasury is getting very
low, about $2S000,000, and he cannot
afford to let ii get much lower, because
the working balance under normal con-
ditions is over $40,000,000. There are
about $35,000.000 of Government funds
on deposit in National banks, but much
of this is to the credit of disbursing
officers of the Government, and but lit
tie can be realized from it, except in
the payment of immediate debts.
But the Secretary said frankly that
he did not anticipate an early issue of
bonds, did not want one, in reality, till
after Congress had legislated and made
provision for the payment of the bonds
in gold. He volunteered all this and
much more. showing that the solons of
the Senate and the House had failed to
make the issue, provided for in the
Aldrich-Payne tariff law, payable in
gold. This was a remarkable oversight,
but It gives the Secretary opportunity
to ask for the legislation which he
sax- Nnf sl
bank circulation, according to the in
terest of the bonds, upon which the cir
culation is based.
There is not calmer man under fire
in all the Cabinet than the Secretary of
the Treasury. He is gradually winning
golden opinions in Washington. 1t is
impossible to make any move of inn
portance in the management of the
Treasury Department without calling
down upon ones head a deal of criti-
cism. Secretary MacVeagh is having
his share. Ee has troubles with the
corporation tax regulations, the deficit,
the enforcement of the customs tariffs,
and so on. But he never shows per-
turbation. He carefully considers any
consequences.
He knows that before many months
go by there must be an issue of bonds
in settlement of the Panama Canal in
debtedness. There are very worrying
details as to the rate of interest and
the like. These the Secretary is under
taking to dispose of, after extended
consultations. Some think he will de-
eide to sell bonds at an interest Of two
and a half per cent. as he has already
declared publicly that two per cent
Government bonds are not feasible. But
the Secretary says he has not yet satis-
fed himself that two and a half per
cent is fair investment rate" and
until he does satisfy himself on that
point he will reach no conclusion about
the rate OF interest for the new bonds.
He says he does not intend to issue
certificates of indebtedness, which the
Aldrich-Payne law authorized in case
of Treasury emergencies.