The Montgomery advertiser., 1908-01-30
CONTIGUOUS
REPORT FILED
Information Concerning
Treasury Operations.
TMLMAN REGISTERS A KICK
Objections Made to Report Being
In Printed Form.
There Is Great Deal Of statistical
Matter I'm The Reply of The
secretary to senate's
Resolution.
TnLMAN REGISTERS A KICK

secretary GOEIetyOu 10 inc 6ctIAtc ASoS
luton calling for information concern
ing the operations of the treasury de-
partment In connection with the recent
financial crisis, was laid before the
Senate today by the Vice President.
The document was read. but print
ed copy of II was on the desk Of each
Senator. and nearly ell of them at once
gave 1t his attention. Mr.. Culberson
inquired of the Vice President whether
the pamphlet contained all OF the
Secretary's communication. The Vice
President said he had not examined
the report.
II do not recall an instance" said
Mr.. Culberson. 'tn which a head OF
a department of the government has
answered Senate resolution in print
ed form"
~ ask the Senator from Massachu-
setts,'' broke In Senator Tiliman. turn
ing to Senator Lodge. who Is such .
stickler for Senatorial dignity and
Senatorial rights to Seply to this In
CURRY"
II don't know" responded Mr.. Lodge
whether q cabinet officer ever sent
In q printed report of this kind as
convenience and don't think IL
10 4 matter of Importance. The entire
reply will be printed tomorrow"
rs IL legaIT' asked Mr.. Tillman.
Secretary can communicate to Congress
either in typewriting or in print"
Mr.. Aidrich remarked that all the
reports OF the Secretary of the Treas
ury are made to the Senate in printed
form.
Mr.. Tillman retorted to this sugges-
ton by declaring: ~The Secretary Of
the Treasury IL assuming the airs OF
president Before he Is elected to
that office, The president sends his
message in this printed form. but !
have never known a cabinet officer 20
assume to do this before"
Mr.. Aldrich said that there was q
great deal OF statistical mattte In the
reply OF the Secretary. That part was
not being priated white the body Of the
report had been laid before the Senate.
Mr.. Culberson said that the fact OF
which he complained was that the
Secretary OF the Treasury had printed
his argument and had II laid upon the
desks OF Senators and, had left the
statement of facts which accompanied
1t. to be printed from them. Senator
Carter, of Montana referred to con
slant opportunities" that had been
heard in the Senate for an immediate
answer to the Senate resolution by the
Secretary Of the Treasury.
Had the Secretary of the Treasury
delayed in making this reply" he add
ed, "he would have been criticized no
doubt. Now his expeditions method OF
the placing his reply before the Senate
Is made q subject for criticism. How
in the world could the Secretary of the
Treasury have pleased the Senators
From South Carolina and Texas?"
C0rtelyOu's Report.
The report, which IL accompanied BIZ
long letter from Secretary Cortelyou
to the President of the Senate, en-
braces a list of other banks with the
amount of national deposits, and the
securities held therefor; statements
showing the condition of banks on Au-
gust 20. 1907 and December 30. 1907
and the amount of bank notes out
standing at various periods; list OF
banks and individuals who received
Panama canal bonds and lists OF those
who bid for the bonds without receiv-
ing allotments and subscriptions OF
per cent certificates of indebtedness;
data concerning Clearing House GER
tiicates issued uring the panic and a
budget of circulars. press announce
ments and correspondence relating to
financial transactions that took place
during the period mentioned in the res
olution.
Secretary Cortelyou states that bus
mess conditions were becoming unset
tied when he became a financial men,
Der OF the cabinet in March. 1907. Va
rious strinEencies occurred prior to Au-
gust, which were promptly relieved. A
plan Of weekly deposits of government
funds in various banks was begun on
August s. By October II these depos-
its had reached a total of t2S 900. 200 &.
In October occurred the stirring events
in New York which eliminated in the
closing Of the bank of the Knicker-
booker Trust Company and the decision
Of the New York banks to issue Clear
ing House certificates. The Treasury
transferred to national banks within a
few days &35.0O0.00 and transmitted to
New York within three days about
$4,000 900 IN small bills. In New
York City alone, the report shows
Clearing House certificates in excess
OF $100,000.000. BY the middle of No
vember the Treasury had met the de-
mand for relief to the extent that the
working balance was reduced to APP
proximately 100000. 1t being APP
parent that no further deposits could
safely be made. banks were permitted
to substitute bonds suitable for saw
ing bank investments for govern
ment bonds which were held as secur-
ity against public deposits. Govern
ment bonds were thus released as Sc
curity for additional bank note circu-
lation. After the issue of Panama
canal OO1ub anu SUNA W
tifcates the bank note circulation be-
gan TO increase until II stood on De-
cember 81. $3.50 ,1SO. 6s5 as against S607.-
iIs,T42 on October Is. On January
is. 1908. the issue had reached $685.
s27.s06.
Turning Point of Panic.
THE announcement OF the issues OF
new securities by the treasury" says
Mr.. CorteIyou. marked In some degree
the turning point of the panic. No
further steps were considered neces-
sary except to continue the deposit OF
public moneys for a time where they
were available, and early In December II
became possible to repIenish the cash
in the treasury by the withdrawal OF
about $4,000, 900 from national banks In
New York city. This was followed. on
January %. by another call for 10000
900 from New York banks. This will
be followed soon by call on outside
banks based upon the local conditions
rather than upon fixed percentage OF
their holdings of public money"
The amount of currency which dis.
appeared from circulation from ths
time of the auapAugion OF the Knicker,