The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1908-01-24


ties in the Senate Of the Sixtieth Congress
came up yesterday when a somewhat
tense situation was created by the refusal
of Senator Hepburn, of Idaho, to waive
his right 10 the floor as the Senator in
charge of the unfinished business, in
order that Senator Stone. Of Missouri.
might conclude a long address, replete
with statistics, which he was making in
support Of his resolution calling for In
formation regarding the deposit OF public
moneys In the national banks.
Senator Heyburns refusal TO extend the
usual courtesy TO his Democratic col
league. evidently surprised the Republi-
cans of the Senate as much as the Dem
ocrats. and Senator Beverage called his
attention TO the usual course In such. cir
cumstances aud urged him 10 withdraw
his objection to letting the unfinished bus
mess be temporarily put aside
Senator Culberson, leader of the minor
ity. finding that the Idaho Senator pur-
posed TO persist i'm what the Texas leader
characterized as discourtesy. insisted upon
the absence Of quorum. and compelled
roll call Then the silver-toned bells.
which are provided for just such an
emergency. began 10 ring, and the absent
Senators trooped into the chamber Be
fore the bells were runC. there were less
IMAM TWO dozen members i'm their seats.
but when the roll call had been finished
The Vice President was enabled to an
nounce the presence OF q quorum.
Refuses Peace Offering.
Meanwhile, however, the Democratic
leaders had been comforting. and when
The unfinished business-the bin 10 codffv
revise. and amend the penal laws of the
niJed StateS-was taken UP. Senator
stone adopted the method of moving to
strike out" the clause which was first
read, and in support of his motion" re-
sumed his speech on the distribution of
Treasury funds among the banks. After
the roll call. Senator Hepburn tried 10
make the amende honorable by asking
Tor unanimous consent that the UnfnisH-
ed business lie over until the Senator
from Missouri could conclude his remarks.
but Senator Stone. who had been thor
oughly aroused by his former rebuff, oh
ected, and chose the other course.
Senator Stone drew his facts from tho
report Of the Comptroller of the Cur
rency- He gave them at great length, oc-
cupying nearly two hours in reading fig
ures from the report and comparing them
with others from the same document
With the object of showing that the dis
trbuuon OF the public funds during the
period Immediately preceding and during
the panic was not equitable" as pro-
vided by law.
lie showed that while the deposits Of
public funds in the New York banks. i'm
the period from August - TO December
3 had increased out of all proportion 10
the increase in the banks I'm other cities
OF the country. and that the increase in
the Eastern States had been vastly
greater than i'm other sections Of the
country, DE claimed that the figures
showed a gross discrimination against the
cities OF the South and the Middle West,
and in favor Of New York.
AssaiIs Federal Loans.
He assailed the policy that had per
mitted the New York banks. while re-
fusing 20 send 20 the banks of other
cities the money which the latter banks
had deposited in New York. TO secure
Treasury funds without cost TO them
selves and "seu' the governments money
at high rate of interest to the other
banks Of the country.
At least one bank failure i'm the Middle
West he said, might have been nre-
vented had the city in which thar hank
was located received its due share of
the allotment Of government funds, In
the face Of all this however, he said
the Republicans Of that section continue
10 cry "halleluiah" for Roosevelt and
70 c!amor for "a continuation of his nof-
cies.
Senator Stone was interrupted by sena-
tors Hale Of Maine; Beyeridge. of In
diana. SmOOt. of Utah. and Burrows ar
A n. At the conclusion Senator
Teller, OF Colorado. surprised his Demo-
cratic colleagues by rebuking Mr.. stone
defending Secretary Cortelyou and prafs- /
ing me New York banks, as having come !
forward TO relieve the market.
Washington Well Cared for.
The statute authorizing the deposit of
government funds in national banks re-
quired, Mr., Stone declared, that there he T.
an equitable distribution. He cited The
cases of Pittsburg and Kansas civ /
which, he stated, We're Of about eouar /.
population. and said that the former held
on December $5,l4220g in deposits. while
Kansas City had but $6iI53s Boston. !
with less than one-third the population Of /
Chicago, held as much deposits.
Mr.. Clarke Dem, Ark called attention 4
to the fact that the capital Of the Rostop /
banks aggregated $26,O50, 0o0 and those of |
Chicago S2Ii)10op. Mr.. Smcot, Of Utah. !
reminded Mr.. Stone that Boston was a .
greater business and banking center than
Chicago.
Continuing, Mr.. Stone showed that on |
December New York City banks held
Sl5.S89.742 in government deposits. while
eight Middle Western States had but So.
56S329, and twenty-one Middle Western
and Southern States had only S726-6qu
He spoke Of the great commercial en-
porium. Washington city" as having de
posts Of government funds amounting TO
$4,4Sl55S. while i'm the following states
deposits We're, Iowa, S3.6l5397, Mime
sofa. S3,4l6.635. and in Texas and Kansas
the deposits were less.
Distribution by Sections
Mr. Stone presented computation 70
show the increase Of government de-
posits from August p until December 2
in the following localities; New England
percentage Of increase. AZ. Eastern States
81; Southern States, 81. Middle West 81.
west Of the Wisconsin River, 1O7; Pa
cifc Coast States, 9.
Next he showed the percentages of in
crease in government deposits in certain
cities during the same period: Boston. IS.
New York, 16S; Philadelphia, At; Pitts
burg 16; Baltimore. 80. In the five cities
the percentage Of increase on the aggre-
gate deposits in the period named was
I93 l-S.