The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-07-17
FALSE PRETENsEs.


That the national treasury was in
desperate financial straits has been gem
orally known for some time. and an is
sue Of bonds early In the Taft admins
tratlon was predicted before the echoes
Of the Big Noise had ceased TO rever-
berate through the halls and corridors
OF the White house. Yet it was not sup
posed that an issue of three OF four hun
dred millions would be necessary TO ex-
tricate the government from the fnan-
cial difficulties incident to seven years
of Theodore Roosevelt.
At a conference between President
Taft, Secretary Of the Treasury Mac
Veagh. Senator Aidrich and Chairman
Payne of the house ways and means
committee it was decided that the pres
idcnt should ask congress to authorize
the issuance of bonds TO the extent of
the latest estimate Of the cost of the
Panama canal The estimate of Colonel
Goethals OF 1897. 100000 as the cost Of
the canal complete was used as a basis
for the proposed bond issue. The orig
inal limit for canal bonds was S1SO.OOO,-
600. and of these $50, 900. coo have been
issued The treasury department has
advanced S40,OO0.0O0 for canal purposes.
A rider to the Payne bin carried this
amount for the reimbursement of the
treasury.
Now ii is proposed to issue over three
hundred millions in bonds, ostensibly
for the building of the Panama canal.
but in reality for the purpose Of paying
the running expenses Of the government
and making good the deficit of one hum
dred millions or more now existing. In
stead of asking for bonds for the pur-
pose for which they are intended, Pres
ident Taft, employing the usual crooked
method of reasoning used by the Re
publican leaders to cover up their
tracks. will urge the issuance of bonds
To the amount of hundreds of millions
for the Panama canal, which Will not
be needed for years to come. In addi-
ton, it is proposed that 3 per cent bonds
be issued, as it is not believed possible
to sell them at per cent at this time.
This is manifestly a robbing scheme
from its very inception. If it is neces-
sary to issue per cent bonds at the
present time, only enough OF them
should be authorized to make good the
s4O0OO,0OO due the general fund of the
treasury and an additional amount for
construction work for the ensuing two
years. Then, if normal conditions are
ever 10 return under a Republican ad-
ministration, the country should be on
its feet in a financial sense. and the re-
mainder of the canal bonds could be
issued at the same rate as those first is
sued. > per cent
President TAFT is endeavoring to force
congress to levy tax on corporations,
and we are told it viii furnish abundant
revenue and at the same time open the
books of the business men of the coun-
try TO the federal government. 1t is
conceded that the Payne Aldrich bill
will not be a revenue measure. and is
not intended 10 be. If the corporation
tax is certain to produce the amount OF
revenue needed. why issue Panama
canal bonds to such an enormous ex-
tent? Has there been a deal by which
]. P. Morgan & Co. will float the bonds
and pocket the per cent in addition 10
the usual rakeoff allowed that favored
inancier and his fortunate partners ?
An explanation should be forthcoming
at once. In the meantime, the bill
should be labeled a Bill for an Act to
Obtain Money Under False Pretenses
and Cover Up the Criminal Extrava-
gance and Financial Incompetency Of
the Republican Party