The Washington herald., 1909-07-16

As result Of a conference held at the
White House yesterday, the tariG bill
conferees viii write into the tariff meas
ure a provision authorizing the Secretary
Of the Treasury 10 issue bonds for the
construction Of the Panama Canal to an
amount equivalent 70 the total cost OF
canal construction.
Col Goethals. the chief engineer Of the
canal. has estimated that the limit Of
cost for the building OF the great water
way will be SSg7. 7.Oo0.oO. and, under the
authority 20 be conferred on the Secretary
Of the Treasury. bonds to thar amount
may be issued by the Secretary at his dis
erection.
The decision 20 provide for the bond IS
sue was the outcome Of a discussion OF
the subject at a luncheon at which PresI-
dent Taft was host. Senator Aidrich.
chairman Of the Finance Committee. Rep
reseutative Payne. chairman or the Com
mittee on Ways and Means: Secretary OF
the Treasury Macveagh. and Assistant
Secretary OF the Treasury Norton were
present
Cardinal Gibbons Present.
Cardinal Gibbons happened 10 be a
luncheon guest, but did not partlcipafs
IN the conference The question eons.d-
cred was made acute by the condition OF
the Treasury, of which Mr.. MacVeagh
was able 10 give fun information
The working balance or the Treasury Is
dwindling. and deficit is threatened
1t was with this state of affairs in
mind that the Ways and Means Com
mittee in drafting the tarim bill insert
ed provision authorizing the Secretary
Of the Treasury 10 issue bonds 10 the
amount OF S40.0000oo. which amount when
realized was 70 be paid into the general
fund OF the Treasury 20 take the place
OF an equal amount paid for the property
Of the New Panama Canal COMPANY.
under the canal construction act Of June
2S. 1902
The Senate Committee on Finance
struck this provision out Of the House
bin, the committeeman being impressed
with the idea that il would be better
policy 70 provide means for reimbursing
the Treasury through legislation I'm the
proposed general currency law. which is
10 be brought before Congress al its next
session.
The whole subject was thrashed out az
the White House yesterday on the basis
Of the necessity for furnishing some re-
lief TO the Treasury. and as a result SEN
ator Aldrich and Representative Payne
agreed to draw a substitute to the House
bill provision so as TO provide authority
for the issue OF bonds 70 the amount of
the complete cost OF Panama Canal con
structiOn.
The details OF the bond issue plan have
not been worked out. To-day estimates
OF the amount OF money that will be
needed to complete the construction OF
the canal will be presented 10 the Presi-
dent and the Cabinet at their regular
meeting
Working on Estimates.
Assistant Secretary Of the Treasury
Norton. who is working on the estimates.
viii go to New York soor TO discuss the
matter with hnanciers, and II is not likely
that the programme contemplated will
be put into final shape until alter his re-
turn. The amount OF interest which the
bonds viii draw has not been fixed. and
no decision has been reached as to the
length Of time the bonds are 10 run.
In order 10 prevent misunderstanding Il
must be borne in mind that the provision
10 be inserted in the tariff bin by the
conferees VIII be In the nature Of a
statute extending the limit Of the amount
OF bonds that may be issued by the Sec
retary of the Treasury to obtain money
-
Canal Under the previous authority
for a Panama Canal bond issue the
Secretary Of the Treasury was permitted
20 issue canal bonds up TO the amount OF
S13O. 100000
The new provision will make It plain
that this authority 10 issue Sl3O,000OO0 In