New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-07
NO PANAMA BONDS NOW
M4CVEAGH WILL AWAIT
CONGRESS- ACTION.
If Necessary the Secretary of the
Treasury VII Issue One Year
Treasury Certificates.
tFrom The Tribune Bureau. !

Washington, Aug 6.-There will be na issue OF
Panama bonds before Congress meets again.
This announcement. which was foreshadowed in
The Tribune Of August 3. was formally made
bv the Secretary of the Treasury to-day Secre-
tary MacVeagh says that he will issue only 3
per cent one-year treasury certificates, IF il
shall become necessary before Congress acts 10
replenish the Treasury cash"
In explanation of his purpose TO issue no Pan
anna bonds before Congress meets Mr.. Mac
Veagh says:
Under existing law the tax on circulation Sc
cured by per cent bonds is / per cent while
y per cent is the tax circulation secured by
2 per cent bonds. The circulation privileges OF
the new bonds would therefore be superior 10
those of the per cent bonds. and would pro-
dgce a discrimination against the latter The
Secretary feels that IL Is duty of the Govern
ment TO see that the per cent bonds have the
protection OF parity. The conference commit
taxes az this time. The Treasury Department
viii therefore sell only per cent certificates.
etc.
II may be added. however that IL is the desire
| of the Secretary 10 avoid increasing the bonded
debt until the National Monetary Commission
has made it's report. which II is expected will
contain recommendations os circulation which
will not be based on bonds. recommendations
which might be made moro difficult OF adoption
by further increases Of the debt through bonds
sold with the understanding that they may be
hypothecated for currency
II is the belief Of Secretary MacVeagh that
with the possible issue OF a few Treasury GER
| tihcates redeemable within year the Treasury
stringency can be tided over. thar the settlement
OF the tariff question will be followed by mate
rally increased importations and pFoportionate-
| ly larger customs receipts. that the increased
| duties certain Injuries will materially aug
ment the revenues, and that IT may even be
possible entirely 10 avoid any further increase
| OF the national debt.
Predictions have been made ever since March
that a loan would soon be necessary. and even
/ Treasury officials have urged Mr.. MacVeagh 10
sake the preliminary steps. BY careful conduct
| OF the national finances however, he has thus
| far avoided the necessity Of making loan. and
/ nothing short Of absolute necessity will lead
him 10 authorize even issue Of Treasury
/ certificates
/ Information that the Treasury Department
/ has decided II such action IS found necessary.
+ 20 finance It's requirements for the coming year.
/ or until the amount Of revenue under the new
\ tariff law can be definitely ascertained. by bOr
+ rowing on short term notes, was received by
bankers IN this city yesterday II was pointed
out IN this connection that authority for the is
suance Of this form of government obligation Is
found H. Section 90 81 the new tariff law. which
empowers the Secretary OF the Treasury 10 Dor
Z row such sums as may pe necessary 10 meet
public expenditures not in excess OF 100000 600.
/ on certificates ~ Indebtedness running not
/ longer than one year and bearing interest at not
more than per cent
OF the existing issues of per cent bonds.
whlch Il is the purpose OF this action 10 safe
guard there are AZ present outstanding $3.50 p
I $50 600 OF this amount Ss+0.5240oO is being
held as security for circulation.
( The Secretary OF the Treasury. according -
the bankers. considers the present time as an
p. opportune one to execute such ad interim hnanc-
/ ing as may be necessary. as by issuing short
term notes during or Just prior to the crop NOV
/ inc season ne anticipates that the banks. by
/ using them rs the basis OF additional circula-
/ ton viii be enabled 10 relieve the money strtn-
gencv which generally occurs at that season 70
an appreciable extent while at the same time
| the maturity OF the notes themselves may be so
| reckoned as 20 provide the retirement OF the
/ additional currency at season OF the year When
/ money is likely again 10 become redundant
The power 10 issue short term notes up 20
! 5000 GOO 900 is conferred the Secretary OF the
rrraasurv under the new tariff law through an
/ amendment of Section 81 of the act OF lS9S.
| ,rbich authorized the Secretary of the Treasury
10 borrow on short term paper up to SlOo'0OOOoo-
| The last time any Of these short term notes
we're issued was during the panic. when Secre-
tarv Cortelyou put opt si5OoOoOO per cent
no1as to be used as the basis of additional cir
/ cUlation-