Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-03-21
BOND ISSUE DEFERRED
Administration Reluctant to Borrow
for Current Expenses.
AVAILABLE FUNDS ESTIMATED
Increase in Customs Receipts Hoped
For-Panama Bonds May In
crease Balance Until Fall.

IreSldent Id1I CoHleyTeO IOf TWO itoui
yesterday afternoon with Secretary Knox
Secretary MacVeagh and Senator Aidricf
as to the tariff bill and the financial con-
dition Of the government.
For the first time the new tariff bill
was considered in detail by the President
and his Secretary of the Treasury. Mr..
MacVeagh took up the bill a few days
ago and began deliberate study of its
provisions.
President Taft will from now on confer
frequently with republican leaders and
others as TO schedules of the bill. SO that
he may be thoroughly posted before a
measure is finally passed.
One result of the conference was that
1t will not be necessary to issue bonds
TO secure revenues for the government
before some time next fall 1t is adj
nIitted that such a course looks ineyi-
table at this time.
Treasury receipts show gratifying in
crease at this time. With cash on hand
and proceeds from the sale of Panama
bonds TO repay the Treasury for expendi-
lures upon that work IL Is believed the
Treasury Will be able to keep away from
a bond issue for six months OF possibly
longer.
The Treasury has been advancing money
right along for the account of the canal.
in the next month or SO Panama bonds
will be sold to bring In money TO meet
the advances.
The administration Is exceedingly de-
Dirous of escaping an issue Of bonds or
of Treasury certificates intended merely
10 meet expenditures that ought to be
paid out of daily receipts. II matters
ran be tided over until fall or early win
ter with the money on hand and derived
from Panama bonds the new tariff bill
will then begin to show what may be
>e In, he nf
Opposed to Inheritance Tax.
Senator Aldrich Is opposed to the in
Aeritance tax proposals of President Taft.
II Is said this subject was discussed yes
terday afternoon.
The Rhode Island senator Is understood
to be firm In his determination that If
he can have his way there will be no in
heritance tax In the tariff bill OF as .
separate measure. In this the President
and the senator have their first clash
Mr.. Taft holds to his opinion that there
should be such q tax, both for the rev.
enues 1t win yield and because it Is just
that there should be such a tax
Senator Aldrich will meet the warmest
kind OF opposition on this score In the
Senate. 1t is known The belief is ex-
pressed by those favoring an Inheritance
tax that the senator will not be able to
win In the open Senate, and probably not
in the committee on finance.
Senator Aldrich has let the President
know that the Payne bill will be riddled
In the Senate, and that II will be changed
in so many ways as to be unrecognizable.
10 the White House that a measure sat
isfactory to all will be finally passed.
No Repetition Of Wilson Bill.
Senator Aldrich and other republican
leaders do not doubt the ability of Con-
gress 10 present to the White House a
bill that will meet approval there They
do not believe there will be any repetition
OF the situations arising about the time of
the passage of the Wilson bill
They inform the President that he may
look for numerous changes and that he
may not get everything he wants. A
sincere effort will be made, they promise
him to enact a tariff bill that will meet
the conditions OF the country and the de-
sires of the majority of the people.
Panama Bond Issue.
Secretary MacVeagh has authority
under existing laws to issue $45 100000
more Panama bonds. In the tariff bill
provision is made for an issue Of $40 OOO,
Co more 10 cover the original expendi-
tures OF the Treasury In connection with
The canal Tfss covers the purchase cost
The Payne tariff bill also gives author
4ty 10 the Secretary of the Treasury TO
issue S:JO,o00OOo certificates OF indebted
hess. running one year. Present laws
permit an issue of $1OOOOO.OOO of these
certificates. During the panic seventeen
months ago Secretary Cortelyou did issue
some of these obligations.
The working balance of the Treasury
dax- oIo
SSS,00o.O00 This balance Is being daily
depleted by necessary expenditures tina,
have been pfling up the deficit all the
year So far the deficit amounts to SSS-
Sb.cO In round numbers. By the end ol
the month II will be in excess of $50. 600,
month during the year.
BY the end OF the fiscal year the work
ing balance will surely be depleted tC
aS low a point as $40 900 600 and possibly
take care of expenditures that will Ger
sainly add TO the deficit we'll into the next
fiscal year. as things now look.
To this S4o.OOO.OOO in prospect. however
may he added possible $4j 100000 from
The sale of Panama bonds and about Sl1
tCoCO more that may be Withdrawn from
rational banks. There are S61 .G,po,D or
deposit with the banks but S,0.oO. 600 oI
. this Is with permanent depositares, which
handle the business OF the government a
different collection points and are re
quired 10 keep bonds on hand to guar
antee the deposits placed daily with them
From bonds and depositaries therefore
u Is possible TO replenish the workin,
balance and meet the deficit to the ex
tent of Sl5.OO00OO. experimenting a prob
able working balance at the end of th
year of SIO.00OOo. leaving a total to tn
good OF s95.O0O,OOO in the next fiscal year
Depending on Customs.
Secretary MacVeagh is understood L
lie hopeful OF increased receipts from
customs right along. AS a business ma
lie knows that when the panic struck til
country. eighteen months ago. importer
and jobbers had immense stocks of good
on hand. These stocks have been mad
IN answer the demands of business 1
thc country. along with the comparativel
scant imports made in the ne period
As consequence the big stoc
importations fell off so much that tn
revenues of the government have bee
greatly affected. With the exhaustio
Of these large stocks and a revivng O
business the imports now on the in
crease and the result may. il is hoped
he x steady increase in customs receipt:
even in tire face of revision OF the tari
and the hesitating disposition oi importer
Ia bring to this country just sufficien
sturl to carry their business. until tn