Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-05-10
BOND ISSUE OF 35o,ooo,0oo Ex
sEcTeD TO BE OUT IN
JUNE.
TREASURY STRUGGLING ALONG
FROM HAND TO MOUTH
Panama Canal Work Constant Drain
on Treasury = Reciprocity Bill Will
Reduce Revenues, ~ Will Also Free
List Sill If Enacted Into Law-canai
Bonds No Aid to Banks.
especial Correspondence.


Washington. May 1o.-F'inanciers are
looking forward to the early Issue by
the government Of Panama canal
bonds. It is expected they will be is
sued not later than early in June and
perhaps in the course Of this month.
The issue will be one of $5O,000,00O
per cent bonds and they will be unlike
other bonds issued by the government
in recent years in that they will not be
available for circulation. That Is the
national banks will not be able to use
them as security for circua ton.
This means that the bonds viii Do
disable chiefly for investment purposes.
Government officials and financiers are
wondering how heavy will be the de-
mand for a 3 per cent investment Sc
curity issued by the government.
The bonds have already been ordered
and printed and will bear date Of June
1. 1911. This does not indicate. how
printed and will bear date Of June
1. II they should be sold after June l.,
the interest to the time Of delivery
would be added to the price which
would have to be paid by the success
full bidder. This has been done in other
instances.
Treasury Needs Money.
For about year, the treasury has
been struggling along from hand to
mouth trying to avoid a bond issue.
But 1t is now plain that 1t can not De
deferred much longer. In the first
place the constant drain on the treas
ury due to the Panama canal, Is TAX
ing out money constantly. About
$50, O0O, 900 has now been taken out on
account Of the construction OF the
camel The proposed bond issue Will
not by any means meet this but 1t Will
give the treasury comfortable amount
of cash to 60 ahead doing business
with.
Not only Is the drain. on the treasury
due to the construction OF the canal
mounting up to large figure but there
IL practically no longer any doubt that
the reciprocity agreement will pass
congress. This will mean some reduc-
ton IN revenue. It Is estimated that
this reduction will be IN the region OF
IS, 000, 900 or 100000.
Free List Bill Would Cut Heavily.
Should the house democrats get thru
the farmers free list bill and the other
reductions in schedules which they
plan, Of course the revenue would be
cut into heavily. But there Is little an
dicationl that the regular republicans
in the senate will allow any other tarin
LEGISLATION than that on reciprocity.
Moreover. the tendency now is for the
customs revenues to fail off. This tend
ency has been noticeable for some time.
Whether it Is due to expectation OF
tariff reductions or what Is not quite
clear but there IS little doubt this is
the case The falling OF OF revenue
from the tariff has been more than
balanced by gain of about $20.000.00o
in internal revenue. from tobacco. beer,
whisky, and the like. The loss in Gus
toms revenue thus far IN the fiscal
year hiss been about $14:Oo0,00o.
The corporation tax IS expected TO
bring into the treasury about the same
SUM az last year, that IS approximately
$4,000 900. A number OF corporations
have abandoned business ana have be-
come Arms or Individual concerns TO
escape the corporation tax. On the
other hand. some new corporations
have arisen to take their places.