In Arrears

For rental of the Canal Zone, the U. S. Government in 1904 contracted to pay the Republic of Panama $250,000 annually. When President Roosevelt knocked the U. S. dollar down to 59-c- in 1934, the U. S. handsomely agreed to up the annual rent to $430,000. But since the day the new rent was first due (Feb. 26, 1934), the U. S. has paid not a cent, now owes $2,150,000. Reason: The new agreement was buried in the revamped U. S.-Panama treaty, still unratified by the U. S. Senate, presumably because of the fear that other concessions in the treaty may interfere with proper U. S. defense of the canal.

Last week, Panama decided to start collecting, by hook or crook. Through the authoritative newspaper El Nuevo Diaro, President Juan Demostenes Arosemena let it be known that on a $3,500,000 loan floated in the U. S. in 1923, Panama would fail to make the $62,000 payment due this week.

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