The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-02-07
.CULBERSON is HOT
AFTER C0RTELYOU.
Declares Secretary OF Treasury
Openly Violated Law i'll Dis
tribution Of Bonds.
SOUTH DID NOT GET SHARE
Figures Submitted 10 Show That
New York Got More Than
Entitled To.
SOUTH DID NOT GET SHARE

IF WASHINGTON, d. c., February o.
In a speech In the Senate to-day. Sena-
tor Culberson declared that the Sc
rotary of the Treasury, by his report
to the Senate, has raised an issue OF
fact as to whether NATIONAL banks IN
New York used the s75,000,OOO OF pubic
money deposited with them for spectl-
iative purposes or whether this money
was used to meet the demand of out
side banks for reserve purposes.
Mr.. Culberson complained that the
Committee on Finance had failed to
take any action on his resolution d.
recting that 1t inquire into the causes
os the recent financial 5stringency.
He declared that the report OF the
secretary had shown that that official
had violated tile law in Issuing Panama
bonds, because money for the canal was
not needed. and that he had violated
the law Ii, awarding these bonds to
national hunks. instead Of to individ-
iuals. and In using the proceeds OF the
gales for the purposes set forth In the
report, and not for the construction of
| the canal.
In issuing the 3 per cent. certificates
the secretary also violated the law,
aIr. Culherson said, because they were
mot used for the purposes provided
I by the statutes, as there were ample
he said the secretary had violated the
law in Issuing the ; per cents, as the
law limits the basis of such notes to
registered bonds of the United states
and to Panama bonds. He had also
failed to distribute these moneys as
provided under the act Of March T.,
E1107. Ills distribution was inequita-
Ible. said Mr.. Culberson. as the money
was used by New York banks for
] speculative purposes
New York Got Lions Share.
THE public money deposited In the
national banks of the United States
aid Mr.. Gulherson, con March %. 1907
was $4,000, 600. On December Sd the
mount reached the enormous sum of
22G 5000, 900. In New York City alone
IL March ed the amount on deposit
here was sl4,ooo,00o; on August ed,
100000. aud on December I'D. $751;
100000.
New York. city. with about one
he banks. secured one-third of all
.he public money on deposit. The
Eastern States, including New York.
4 having only about three times the
capital and surplus of the southern
states, were given four times as much
II the public money. The increase OF
government deposits In the Eastern
y
vas s54,0oo,00u, and the increase In
deposits in Southern states was ST.
i 100000.
/ .srhe increase of government de-
posits In New, York City alone from
August to December was Sl7,0Oo,00o. or
three-hfths of the entire increase OF
4 sT9.0D0,00e.
/ The State Sof Texas. with 4.ooo,-
I 900 OF people. and a banking capital
and surplus of $4,000 00c, compared
i with Washington, D. C. with a popu-
i lation Of 100000 and a bank capital and
i surplus of sS,7so.000 got but sl,73S.0O0
Il of the public money distributed De-
cember Cd, while Washington got ST.
4 $4,000"
Banks Increased Loans.
"The secretary says in effect that
S37.000,0o0 of specie held by the New
York banks and S40000,000 OF reserve
was used to meet the call of outside
4 banks whose reserve the banks OF New
York held, whereas the report of the
secretary shows clearly that the
amount which the New York City banks
owed all other national banks de-.
i creased between August ED and De-
4 cember Sd only s10.s2o,o1l, and It is
I Significant that although the New York
lefty banks did not pay 10 the banks
: outside of that city more than this
II S10,S20t51l. they increased their loans
1 and discounts during the same time
: S32,0QO.0U0.
These figures show that while this
4 panic was on, and while individual de-
Z positors We're clamorinE for their
money, while the New York banks were
issuing clearing house certificates,
while the outside banks were demands
ing their reserve, the national banks
lof New York increased their loans and
4 diScountS byaf S6S. 900 O0O 9SE
"A letter he said, received by me
this morning from the Comptroller OF
the Currency informs me that not
Understanding tho crisis between August
md December, the loans and discounts
df the national banks of New York