Waterbury evening Democrat. [volume] (Waterbury [Connecticut]) 1903-1917, 1908-01-30
ANGRY At CORT.ELYOU
Democratic Senators Rage Over
His Printed Reply.
NO PRECEDENT FOR ACTION.
TiIlman Objects That Treasury Head
is PrematureIy Taking on the Airs
of a President''-CorteIyou Accounts
For His Stewardship.


of a President"-CorteIyou Accounts
For His Stewardship.
Washington, Jan. 30.-Secretary Cor
telyOu sent to the senate a long let
ter transmitting a much longer state
ment in reply to all the criticisms upon
his course during the recent monetary
disturbances. The facts and figures
on which his defense is based accom-
pany the letter in the shape of eight
cen exhibits. The letter was not read
to the senate, but printed copy was
laid upon the desk of each senator.
Senator Culberson asked the vice
president if the pamphlet contained all
of Secretary Cortelyou's cOmmunica-
ton, but Mr.. Fairbanks said he did
not know.
Il do not know of any previous in
stance in which the head of an eXecu-
tive department has answered senate
inquiry in printed form" remarked
Senator Culberson, and Senator Till
man broke in with, Il ask the sena-
tor from Massachusetts," pointing his
finger at Mr. Lodge, ''if there has ever
been an occurrence Of this kind"
Il do not know replied Mr.. Lodge,
"but | think the action Of the secre
tary is right and proper"
~ IapaI Shonta5 Nfr TiIIp,on
at certainly is legal" replied Mr..
Lodge, because the secretary can
communicate to congress either in
manuscript or print"
Mr.. Tillman said he had never known
of an executive officer doing this thing
before. THE secretary of the treasury
is assuming the airs of president be-
fore being elected to that Office" he
said.
Mr.. Culberson said his complaint was
based on the fact that the secretary
had printed his argument, having it
laid on the desk of each senator, leav-
ing the facts accompanying it to be
printed hereafter
Il do not care three straws for Mr..
attempted vindication Of
his action in transgressing the laws"
said Mr.. Tillman. What l want is
the facts"
Secretary Cortelyou says in his let
ter that the panic resulted in the with
drawal of $296, 100000, or one-tenth of
the entire circulation. Indicating the
energy with which our economic re-
sources were devoted to the relief of
the situation, the excess of exports
over imports rose from 81 AGA, ,404 in
August, 1907, to S114,S90,665 in De-
cember
Pointing out the success attending
the issue of new securities in relieving
the acute pressure for currency, he
says:
"The total bids for the Panama canal
bonds amounted to S2,220,G04, $50. or
more than forty-four times the amount
offered. This fact, not heretofore made
public, would have stamped the loan
as an even more remarkable success
than it was if all these bids could
have been regarded as made in good
faith by responsible parties. Exami-
nation of the bids showed, however,
that many of them were not only spec
ulative in character, but that they
were made in many cases for very
large amounts by those who were per-
sonally irresponsible and incapable Of
having made even the smallest prelim- |
mary payment, II such payment had |
been required. When the awards were |
made. therefore. the bonds were |
lwarded without hesitation TO national
banks in those cases where the prices
offered were 102Is or higher and where |
the bid appeared in other respects to |
be made In good faith and with full |
on the part Of the bidder to |
execute his contract. The amount |
thus awarded TO national banks was |
81. .99S. .OIO."
Concerning the distribution Of pub
ic moneys in banks throughout the |
the secretary says IL has been |
lone without regard to partisanship. |
ind no section has received other than |
he fair and impartial consideration TO
which IL is entitled.
while the banks OF the state Of 1
New York appear as holders Of public /
moneys 20 the amount Of 26.s per cent
" their capital and surplus. the banks
" New England. eastern and middle
western states. taken as a whole and
New York. show a percent
lge Of deposits 10 capital aud surplus
4 only a litsle more than II per cent.
The hanks Of the southern. western
ind Pacific states. ON the other hand.
how a proportion Of nearly Is per
'ent. With the elimination Of New
fork from the eastern group the per
'entage of the remaining eastern and
middle western states is only abOut
H.
Details 81 the distribution appended
n the report show that the present de-
'osits are divided among 1.42l hanks.
treat care had been taken in distribut-
ng the deposits. and much c0nsidera-
ion was shown TO communities where
larticular trade movements involve a
peciaI demand for currency at CERTAIN