Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-10-12


some of the officials who are identified
with the canal construction. Food sup
plies and clothing We're admitted into the
canal Zone free since they were part of
the commissary supplies, but the duty
had to be paid on cigars and two or
three other articles. In allowing Panama
| to collect this duty many of the Ameri-
| can officials thought that the United
States was really abrogating its own
sovereignty.
Laws to Encourage Industries.
The Panama national assembly at its
session last spring passed various laws
whose avowed purpose was to encourage
native industries. Some of these did not
| require the sanction of the United States
and are now in force. Others have not
been promulgated because the United
states has withheld it's approval y
measure for the encouragement OF the
native sugar industry was not oo)ecteu
to because the increased duty ievlee
did not exceed the existing rate Oh 10
| per cent ad valorem. But other tarlH
duties were held up because the new
rates proposed were in excess OF 10
per cent. Soap was one of these com
| modities, the intention OF Panama
being to encourage native soap IN
dustry
The plan of having the United States
continue to regulate the Panama tarlH
is questionable. some Glasses OF Soih
modities imported from the United
States would have to pay Increased
rates, but 1T does not appear that
American commerce would suHer VI
lose appreciably in volume. The ques-
ton is actually one of policy, or pos
sibly of expediency. Panama may not
legislate wisely in regard to her tariH
opinions will always differ on the
wisdom of this subject-but at present
she does not seem to be in urgent need
Of tary al n iran IN
United States. 1t is possible that IL
reciprocity agreements are enacted un-
der the new American tariff act
solution of this matter may be found IN
a reciprocity convention between the
United States and Panama.
With the other measures passed by
the national assembly was a very COM
prehensive .one which looked to the. eS,
tablishment of a national bank or IS
sue. 1t was drawn up with the purpose
of securing the establishment OF an
American bank on the isthmus, and its
provisions were submitted to various
financial institutions in New YORK
which, were understood to look with
favor on the project. After the meas
ure was passed the New York financiers
lost interest. The plan itself has not
been given up, but If carried out 1t
will be by London banking capital in
control and with American banks salts
fed to take minority Of the capital
Free fOrCS In view.
A project more directly related to the
canal is for the establishment of free
ports. This is somewhat vaguely advo-
Gated without definite distinction be-
tween bonded warehouses. with "a slight
warehouse transit charge, and absolutely
free ports with no restrictions on i'm
ports and exports. The Panama national
hi n
of bonded warehouses, but the terms are
not satisfactory to the local banks when
would be expecteo' to. advance funds on
goods in bond. Unless the act is modlned
it is not likely to prove effective in Great
ing bonded warehouses.
The free port project has pfoduei
basis. 1t is that Panama could be mace
the distributing center Tor large ara
on the Pacific side. while Colon would
serve for the Caribbean districts. 1T II
became a free port, Colon would nnd user
in competition with Curacao ana 81.
Thomas for the West Indian trade out
Panama would have no competition on
the Pacific side. Should the scheme ne
attempted il Light be necessary to make
the minor ports free also SO that Pana-
ma would in fact be free port repuplic.
The country could find sufnclent sources
of revenue to get along without lHlport
duties and could remit the present small
export tax but such plan would be
adopted with a great deal OF hesltatloh'
especially since it might mean the aoan-
donment of the present policy of enccur-
sing domestic industries. Long years
back Panama was a free port, and mer-
chants Paid a graded license tax. Those
of them who are advocating the free port
project say that such system would be
now and would insure
larger revenue.
Income of the Republic.
The republic does not seem to be at
all badly off for revenue. Besides the in
terest on the $1,000 canal purchase
money deposited in New York. it is now
receiving from the United States the
$3.50 900 perpetual annual rental for the
canal concession. This is very comfort
a BILE lump income for country which
has only 100000 inhabitants. But into !
the question of bonded warehouses and j
free ports again enter the relations with |
the United States and the Canal Zone. 1t |
Is the United States which is building a |
terminal at Balboa with all that is re-
quired for ships and cargoes
The administration of President Por-
ras has an internal Improvement |
program o its own-good roads, agricul !
tural development and railway building. !
All this is good. It's success is not de- |
pendent upon American control of the /
Canal Zone. 1t rests with the Panamans |
whether this program becomes more |