Empire, Canal Zone, July 30, 1910

 Sir: I have the honor to submit the following report of the dis­bursing department on the Isthmus for the fiscal year ended June 30, 1910:

On account of the subsidiary Panamanian coinage disappearing it became necessary, in September, 1909, to cease paying out 1, 5, 10, and 20 cent Panamanian pieces, except at the Ancon and Cristobal pay offices (contiguous to Panamanian territory), therefore, at Empire and on the pay car, for both gold and silver men, the United States coins.

In order to expedite payments, automatic cashiers were placed on the pay car for the payment of change where less than $1 is required in each individual case. This is a scheme which has been in use for a number of years in the States and not only expedites the payment of these small coins, but insures correctness as well. This has proved quite advantageous and has resulted in increased satisfaction among the silver employees for the reason that they all much prefer United States money to the Panamanian silver. 

The larger Panamanian coins, the peso and half peso, are at times scare, tending to show that they are being hoarded or else that the amount coined is hardly sufficient for the needs of the public. Should and further scarcity develop I would recommend that the present sil­ver payrolls (so designated) be continued, but that United States be paid to the entire force, as within a very short time sufficient gold would be accumulated on the Isthmus for that purpose.

 The only shipment of money received from the United States during the past year was a quantity of United States change, made necessary on­ account of the scarcity of the smaller Panamanian coins.

    Respectfully,   EDWARD J. WILLIAMS,
 Disbursing Officer

Col. GEO. W. GOETHALS, U. S. Army,
Chairman and Chief Engineer, Culebra, Canal Zone