Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1909-07-06

to its disbursements; and it Is perfectly
clear TO my mind that no harm can come
from continuing existing conditions un-
Ill the meeting Of Congress inDecemoer.
It will then be necessary to take up
questions involving cost OF the canal,
including its purchase, and IS to the
character OF the bonds which
shall be issued. | think 1t must
be evident to everyone that we
shall have to provide for an ad-
ditIonsl class Of bonds for this purpose.
The question of the issue of bonds
is of course also involved in any changes
which may take place in our monetary
affairs. l hope the Monetary Commits
sion will be able, at some time during
The next session, to make at least pre-
limipary report on the important matters
committed to it. This will probably in-
volve some differsnt provisions with re-
ference to the character Of the United
states bonds TO be issued hereafter. The
committee have thought it desirable to
strike out sll of the provisions contain
ed in the Houss bill with reference to
bonds and to additional certificates OF
indebtedness, and as to the cost of the
Panama Canal, as they are not strictly
matters which shonld have consideration
in this bill, and would certainly lead to a
discussion Of some length as 10 the char
scler Of the provisions to be inserted.
Inasmuch as no harm can come to the
Treasury along this line between now
and December-I feel very positive on
that point-tbe committee believes
those matters should be left un-
til the next session of Congress. "
1t had been the original intention Of
Senator Aldrich to include in the tariff
bill provision for the issue of $780,
900. 900 of Panama bonds to reimburse
the treasury for money advanced in the
purchase and construction Of the canal.
There are now outstanding $S5, coo, 900
of Panama bonds of former issues,
practically all of which are held
By national banks and bond dealers.
They were sold by the government at
an average of about 1913, and bear in
terest at 2 per cent About $65, 000,-
900 of them are on deposit as security
for national bank circulation. Under
existing law Panama bonds cannot be
sold for less than par, and in the opinion
of Senator Aldrich and treasury officials
az per cent bond issue at this time
would not sell for that price. They
think 1t will be necessary to increase
the rate to % or 8 per cent, But unless
the law is changed government bonds
carrying a higher rate OF interest than
2 per cent cannot be used by national
banks as security for circulation on the
same basis of taxation IS the present
2 per cent Panamas and cOnsols.
The tax on circulation based on The 2
per cents is one half of one per cent a
year. while tina. based on bonds carrying
a higher rate Of interest is l per cent 8
wear. This fact would, it is thought,
tend to lessen the price at which the
bonds could be sold in the open market,
even though they carried 8 per cent in
terest. Another consideration to be taken
into account is the effect that an issue
If 60 or more millions Of bonds woald
have upon the price of the outstanding
sS5. 900, 600 Pauamas. 1t might send
hem below par and involve serious loss
m those who originally bought them for
1903 and over. 1t was these things
which Senator Aldrich had in mind
when he declared that an additional
class of bonds, or different provisions
With reference to their character, would
have to be provided when the subject
was taken up for disposition. Besides a
recommendation Gu this matter OF bonds
it is not expected that the preliminary
report of the monetary commission TO
which Mr.. Aldrich alluded will include
ANYTHING except some changes in the
laws regarding the management OF ma
tional banks.
In letter to President Taft 1t is made
clear by Senator JEFF Davis that the
newspaper charges that be was guilty OF
discourlesy in not attending a recent
White House dinner is not true.
Senator Davis explained that having
recently lost his wife, he brought HE y
year old son to Washington for company.
On the evening of the dinner the boy,
who had gone to Fort Myer to see the
sirship. failed to return until such late
hour that Davis become alarmed and
went to look for him. When the search
epded it was too late Tor him to attend
the dinner
An amendment TO the tariff bill introduced
by Senator ale and approved by the Senate
today provides that products OF the Maine
forests on the st. Johns and st CrOix river.
manufactured by American citizens in New
Brunswick may be admi ted free to the
United States for two years from the time OF
the passage of the bill.
Pickles and baking powder were the two
staples which were gravely discussed before
the Pure Food Board Of the Department OF
Agriculture today. Whether the use Of alum
rs q preservative in the pickles. and as con-
stituent of the powder is harmful was the
question at issue. ] he hearing lasted through
out the d4y. Decision will be rendered later
Representative Cassidy has secured an
order from the Department Of Commerce and
Laeor for the relief from custOday OF julius
BUD nyanszky, the editor Of the Hungarian
Daily News of Cleveland. Ohio. The editor
was under sentence of deportation.