The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-07-17
Panama Canal Issues Will Be
Made Only When Occas-
ion Demands.
MAcvEAGH ON THE PLAN
HE STATES THE TREASURY VIEW
WAS ASKED WHEN THE TARIFF
coNFEREEs TOOK UP THE
QUESTION:.

Washington, July 1.-THE bond 70.
sources Of the treasury department are
ample, declares Secretary MacVeagh
in a statement issued at the treasury
yesterday. and even il congress author
ICES per cent bonds to cover the en-
tire cost of the Panama canal, less the
amount already issued, the bonds
will only be issued as required" The
statement follows:
The conference yesterday over the
matter of bond legislation in the new
tariff bill was not held at the sugges-
ton OF the secretary of the treasury.
The bond resources of the treasury de-
partment are at present ample. in
Guiding $45,OC0OOO of unissued Pan
anna bonds, and $1OO.OOO.OOO of unis-
sued per cent certificates.
Treasury View Was Asked.
r 1t was, however. contemplated that
the tariff bill should contain a new
authorization Of bonds. The house bill
contained two authorizations. one for
100000 OF new Panama bonds and
one OF an additional $4,000, 600 of 3
per cent certificates. The finance COM
mittee of the senate at first intended
to include bond legislation, but finally
decided to omit it and let that matter
go over until the next session Of con-
gress, when it was supposed that the
banking and currency question might
be considered and when the govern
ment bond question might have to be
altogether recOnsidered.
This decision of the finance COM
mittee was acquiesced in by the treas
ury department. because 1t was a mat
ter Of comparative indifference to it..
as it could do without new authoriz-
alton. The consultation yesterday
was due to the fact that the question
had come to be considered by the con-
ference committees, and the treasury
department was asked for its views.
Proposition Entirely Acceptable.
THE preference manifested for an
authorization of per cent bonds to
cover the entire cost of the Panama
canal, less the amount Of Panama
bonds already issued. was entirely ac-
ceptable. as it would confirm the policy
OF payinf ultimately the entire cost of
the Panama canal out of bonds. 1t
goes without saying that even If such
authorization is made the bonds will
only be issued. as required.
This explanation is made because of
some misunderstanding of the attitude
Of the treasury department."
Three Per Cent Maximum.
The per cent interest is maximum
proposition. the purpose being to au-
thorize interest Of mot to exceed" )
per cent. This is regarded by those
concerned in the plan for bond author
ization as better than fiat Limitation
permitting as it does the fixing of less
than 8 per cent If found feasible while
meeting the objection raised as to the
present nonmarketability of such
bonds at so low a figure as = per cent.
1t Is left to the secretary's discretion
within that maximum limit and, in
case the issue Of any part Of the
amount is determined upon at any
time, or from time to time, the mar
ketable conditions of course will gov.
ern.
The provision in>the proposed legis.
lation that will govern the tax on cir
culation will follow the existing law.