New-York tribune., 1909-12-29
NO BOND ISSUE NOW
M4CVEAGH WAITING.
Plan to Equalise Circulation
Tor May Be Opposed.
[By Telegraph to The Tribune. ]

BY Telegraph TO The Tribune
Washington. Dec 2S.-Unless some uneS-
pected contingency shall arise no Panama
Canal bonds or certificates of Indebtedness
will be issued by tha Secretary of the Treas
ury for several months
There seems to be a sentiment in Con-
gress against Secretary MacVeaghs plan to
equaize the tax on bonds which are used AS
security for bank circulation. Mr.. Mac
Neagh does not want TO issue Panama
bonds at per cent under existing condi-
tions because he fears that the effect would
be to discriminate against the outstanding
2 per cent bonds. The Republican leaders
have suggested that a parity will be main
tanned if the new Panama bonds bear IA
per cent interest.
If the Secretary Is unable 10 obtain the
desired legislation changing the circulation
tax, he will probably issue the Panama
bonds al . II per cent, provided he is salts
fed he can make satisfactory sale at this
interest rate. If he is not satisfied that he
will be able to market the bonds at this
rate he may decide to issue certificates OF
Indebtedness al 3 per cent. The Treasury
officials anxious to avoid the issue OF
certifca tes of Indebtedness, and would like
to issue per cent Panama bonds under an
equalized circulation tax
1t is probable that the Senate and House
leaders will make several amendments sug-
gested by Secretary MacVeagh to the para
graph of the Payne law authorizing an
issue of Panama bonds One of these
amendments will provide for the redemption
OF the bonds in gold coin. The law pro-
vides for the payment of the interest In
gold, but neglects to provide that the prin-
cipal shall be paid in gold. 1t is also de-
sired that there shall be a modification OF
the law regarding the denominations of the
bonds The Payne law provides that they
shall be in denominations of 500, $500 and
$1,000. Secretary MacVeagh will suggest
that he be authorized to issue bonds of larS-
denomination in certain instances.
No provision is made in the law for re-
Gemption of the certificates of Indebted
ness in gold. This omission is not regard
cd as serious. however, as the life of the
certificates is limited to one year. The
law also failed to provide the usual appro-
priation of one-tenth of l per cent to meet
the expense of preparing. advertising and
issuing the certificates. 1t is understood
that the Treasury officials believe they will
be able to make suitable provision for the
issuance of the certificates even If Con-
sress should refuse to grant specific au-
thority for this expense
Since Secretary MacVeagh and Senator
AIdrich had their conference on the bond
question with President Taft a week ago
there has been steady increase of the
working balance in the Treasury. This
fund is not what it should be, but if the
customs and internal revenue receipts con-
tinue to show an increase it may reach a
satisfactory figure. On December % the
working balance was s22,S00,000. whereas
it is now s24.160,O0O. The general fund
now has S7s.3S2OoO 30 its credit. against
s7S.S50.000 week ago. The Treasury Of
ficials feel that the working balance ought
to be at least s45 900, 900 and the general
fund 00.000, 900.