The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-12-10
BOND BUSINESS
BEFORE SENATE
Resolutions introduced by Till
man for Investigation of the
Treasury Department.
LEGALITY IS QUESTIONED
NO ACTION ON THE cULsERsoN
RESOLUTION.

Washington, Dec. e.-Senator Till
man today introduced resolutions di-
recting the committee on finance to in
vestigate the recent proceedings of the
secretary of. the treasury in connection
with the financial crisis, and also to
make inquiry concerning clearing house
certificates. The resolutions were pre-
scented in two series, the first dealing
with the operations of the treasury de-
partment, and the second with clearing
house certificates. both being divided
into three subdivisions.
The first of the resolutions directs the
committee on finance to investigate the
report of the senate. as follows:
Question of Legality.
"First-Whether the issue of certifi-
Gates of Indebtedness bearing 8 per cent
interest. bids for which were invited
by the secretary of the treasury Nov.
Is, 1907, were for the purpose of Dor
rowing money to meet public expendi-
lures as provided By section 80 of the
act approved June 10, 1899, and, if not
whether there is any warrant of law
for the issue of said certificates.
Second-Whether the issue of $780,
100000 of bonds of the Panama canal
loan, bids for which were called for by
the secretary of the treasury on Nov
is, 1907, was required to 'defray the
expenditures on said canal, there being
at the time when both of these loans
were made upward of $500, 900, 900 in the
treasury for current expenditures.
Clearing House Certificates.
"Third-Whether any legislation was
necessary TO protect the people and
business interests of the country from
the issue of unlawful money, If clear
ing house certificates are such, and to
prevent the Illegal increase of the pub
lie debt in time of peace"
The second series of resolutions direct
the finance committee to investigate
and to report to the senate as soon as
practicable:
'First-Whether clearing house GER
tificates with which the country is now
flooded are being issued under authori-
ty of law or contrary to the same.
'Second-Whether the issuing of such
certificates by an association of banks,
both state and national, and the use
of the same as money subjects such
notes TO the tax of 10 per cent pro-
vided in section 3412, United States re-
vised statutes.
Warehouse Receipts.
1Hnu--N neither II WOULD De DOSSi-
Bile, under the law as il is, for an as
ISOLATION of banks, warehouses and ele-
vators to issue certificates based on
cotton, wheat and tobacco, stored in
such warehouse or elevators, and fully
insured to be used as money in mar
keting said crops in the same way as
clearing house certificates are now
used"
The resolutions went over
Senator Culberson also called up his
resolutions asking for information con-
corning the issue of $4,000, 900 of Pan
ANA canal bonds and the total number
Of banks in operation on Dec. 1, and
Nov. is, 1907, and the amount of public
money on deposit in the banks of each
state and territory on those dates.
These resolutions also were allowed
to go over.
The same action was taken on the
resolution concerning deposits of public
money in national banks.