The Washington herald., 1909-07-16
BIG BOND ISSUE.
Continued from Page One.

bonds makes that amount part or TIE
total amount OF bonds 20 be authorized
oy the new provision Under the authori-
" contained IN the original act for a
Panama Canal bond issue. the Secretary
Of the Treasury has sold 100000 IN
bonds. which amount must be deducted
from the total amount 70 be authorized
IN the forthcoming tariff law. Out OF the
money realized from the sale OF the new
bond issue there win be paid into the
general fund Of the Treasury S40.O00000 10
cover the amount paid 20 the Panama
Canal Company OF France for the pur-
chase Of the canal properties and rights.
and 100000 paid TO the Panaman re-
public
Officials are reticent as 70 the details
OF the decision reached at the White
House conference. and there IS some un-
certainty as 70 what the total amount Of
the proposed bond issue viii be. II is
understood that the amount OF S5s7.-
10000 VIII be inclusive not only OF the
cost Of the canal construction. but OF
the amount paid 10 the Panama Canal
Company, OF France. and Of the amount
paid 20 the government Of Panama
Some changes may be made IN Col
Cocktails estimate and until complete
OF the bond issue Will not be known
definitely.
SIHy Delay Subscriptions.
Il IS not expected that the Secretary
OF the Treasury, II the contemplated
bond issue IS legally authorized as part
OF the tariff bin. win call Immediately
for subscriptions 10 the fun amount Of
bonds authorized by the prospective law.
Conditions may arise which may make
It advisable for him to call for only part
Of the amount that ultimately viii be
required.
AS a matter OF fact, the main concern
Of the administration and the tariff con-
ferees is not with regard 20 getting
enough money through a bond issue 10
pay for the completion Of the Panama
Canal project. but 10 obtain an amount
sufficient 10 prevent the depletion OF the
general fund Of the Treasury. which was
hard lift by the big payments 20 the
Panama Canal Company OF France and
The Panama government.
The working balance OF the Treasury Is
now about 44G0.00l This amount IS In
elusive OF S25,ooo,0o0 now being withdrawn
from national bank repositories. IL Is ex-
pected that by the end Of the month the
hood OF 240.000000.
The tariff bill as passed by the House
provided that the Secretary OF the Treas
ury should borrow from time 20 time IN
his discretion al a rate OF Interest not ex-
ceeding g per cent such sums as would be
necessary 20 meet public expenditures.
and 20 issue IN return certificates OF IN
debtedness up 10 the amount OF S2500 900.
This provision was struck from the House
bill By the Senate Committee on Finance.
and the committees action was sustained
by the Senate.
The Senate did not regard this provl-
sion as necessary. IN view OF the fact
that the Secretary OF the Treasury has
ample authority % raise money IN this
way when the necessities Of the Treasury
demand H. The provision with regard %
an additional issue Of Panama Canal
bonds, with $50,0oO,o00 OF the amount de-
rived from their sale 10 be covered into
the general fund Of the Treasury. IS re-
garded as sufficient 10 meet any imme-
date Treasury crisis, and the House
tariff bin paragraph governing certif-
Gates Of indebtedness VIII not be rein
serted