The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1908-02-07
.CULBERSON IS
VERY CRITICAL
DgMocRATIc SENATOR HOLDS 'l E'
coRTELYoU UP TO scoRN.
ANAL Yves Ills REPORT
Claims That Secretary Of the Treas-
ury Discr'minated Against Private
Citizens and Helped Out Only New
York Banks--ouotes Figures.

ga3f1 VtNG G00uN0r--- -N2NVsVO ~ s0SssSSs
washington, Feb GA financial
speech by Senator Culberson Of Texas
and the passage OF a bill providing
for q government exhibit at the
Alaska kon-P Pacific exposition were
the chief features Of interest Of the
proceedings OF the senate today.
During the debate Mr.. Burkett said
the proposition to hold the exposition
did not originate in Alaska. 1T has
been put forward" he said. "by lot
Of boomers Of Seattle who propose to
sell real estate.
@The men who promote the exposi-
tions," said he, "are not the men who
have to bear the responsibility for Iiie
bills incurred. They start an exposi-
ton, unload their ideas on the com
munity and then get their money to
pay for It,"
Mr.. Burkett read list Of exposi-
tiOns in the United States, showing
that $40. $50. .727 had been expended by
congress in aid Of them.
Mr.. Tillman supported the idea Of
holding expositions, saying the
Charleston exposition had brought a
great many people from the north to
the south to be Civilized" there.
Senator Depew advocated the bill
in a speech in which he asserted the
failure of the Jamestown exposition
was due to its location. The passage
OF the bill followed.
When the currency matter came up
Senator Culberson declared that the
secretary Of the treasury, by his report
to the senate, raised the issue Of
whether national banks in New York
used the $s5,0O0.o 900 Of public money
deposited with them for speculative
purposes or whether this money was
used to meet the demand Of outside
banks for reserve purposes.
Mr.. Culberson complained that the
committee On finance had failed to
take any action on the resolution d.
reoting that It inquire into the causes
OF the present financial depression.
He declared that the report Of the
secretary OF the treasury had shown
tAat that ofacer had violated the law
In issuing the Panama bonds because
money. for the canal was not needed,
and that be had violated the law In
awarding these bonds to national
banks instead OF individuals and In
using the proceeds of the sales for the
purpose Get forth in the report and not
for tie construction of the canal.
Charges Violation.
IN issuing the three per cent certin
Gates the secretary ALSO violated the
,am. he said. because they were moi
u.sd Tor the purpose provided BY
statute, as there were ample funds
for such purposes. Moreover, he said
the secretary had violated the law n
issuing the three per cents. as the lav
urnits the basis Of such notes TO res
4stered bonds 81 the United state'
.nd to Panama bonds. He had alss
failed TO distribute this money ~ pro
\ svided under the act Of March 1917
Hia distribution was ineQuitable. sal
Mr.. Culberson. and the money ~
usad by the New York banks for spec
ulative purposes.
The public money deposited in tn
national banks Of the united States,
aaad Mr.. Culberson. ION March =
1ao7 Wa 314o, ,ooo. 900. On Decsmbe
4 the amount reached the enormou
sum Of ;2as 100000. In New Yor
city alone on March p the 9 amount noun. 2 2
danosit there was 314.ooo.oo on AZ
4 gust q. $2s. .0oo 900. and On DecemOe
s.,7s. 900. 900.
n ..New York city. with about on
rixth Of the capital and surplus q e
ne banks, secured one-third O all =
.,rbl,c money on deposit. The cas-
arm states. including New York, hs'
Ing only about three times the capitl
and surplus OF the banks Of the sout
.ern states. were given four times :
much Of the public money.
Denial of Own staaemsnt.
Mr.. Culberson charged that the :
mort of the secretary Of the treasul
contained denial Of Ito own stat
meot. H We
.The secretary Of the treasury.
said, .'says In effect that $1b,ooo,o'
.oe specie held BY the New York BAN
and 81. 900. 900 Of reserve was used
meet the call Of outside banks who
.reserves the banks Of New York hol
whereas the report Of the secreta
elbows clearly that the amount Will
tho New York city banks owed
other national banks dscreased !
tween August a. and December , ou
31o, ,s1o, ,6l1. and It p significant th'
although tie New York city hanks q
nok pay 70 ths banm outside Of =
atty more ,haa tAis $40 o.s11. q