The Washington herald., 1908-02-07

Senator Culberson, of Texas, leader Of
the minority in the Senate, made an
other onslaught upon Secretary Of the
Treasury Cortelyou yesterday.
'-The Secretary of the Treasury has
raised the question of fact as TO whether
the S5,000,000 deposits with banks in New
York City was used to increase circula-
tion or for speculative uses, said Mr..
Culberson. and he charged the Secretary
and the Finance Committee with falling
% keep faith with him in regard TO
certain resolutions he had proposed call
ing for information.
Passing 10 the consideration OF the Sec
retary's relief measures. Mr.. Culberson
asserted that the Secretary violated the
law in five specific particulars in his is
suance of Panama bonds and per cent
Treasury certificates and in distributing
public funds in national bank depOsitaries
Not Used for Speculation.
Il charge that the money deposited in
the banks of New York City by the Secre-
tary Of the Treasury was not Used by
them to increase national bank circula-
tion, but for purposes Of speculation and
eXtortion," he said. THE deposits of pub
lie funds" he declared. had been arbi-
trariIy and unI8wfulIy concentrated in
New York and the Eastern States. In the
South, for the period between March and
December, the deposits had increased
from $93 O00000 20 S2g0d6000 while in
New York City they had increased during
the same period from $4,000 O10 TO Sl5,g0J,-
00l.
New York City banks. with one-sixth
OF the banking capital and surplus OF the
country had one-third of all the public
money deposits said the Senator.
RaPs CorteIyou and Banks.
lie pointed out that the law required
an equitable distribution of deposits Of
public funds, and he charged the Secre- /
tary with Improperly and unduly eulogiz-
ing the conduct of the New York banks
in the late financial furry The Secretary
had said IN his report that the New
York banks had expended S65 100000 to |
meet the call of outside banks whose re
serves they held Eut the report showed /
that the New York banks had reduced !
their Indebtedness to the outside banks
by only Slo,Ss05u
a comparison of the loans and discounts
Of the New York city banks with those
outside. for the period between August /
and Notwithstanding the duration of
the panic-made by Mr.. Culberson. showed |
that the New York banks increased their !
loans and discounts $63.00l600. while the
outside banks decreased theirs sg3. .0u0 n10 /
He pointed out also, that of the loans
and discounts of the New York banks
outstanding December ., 1907, S312, 10000
were demand loans. which had Increased
since August during the panic from $25l
e)J,090. These increased demand loans had
been made upon stocks, bonds, and specu- /
lative collateral, showing that they were
stock market loans.
Charges They Withheld Money.
These figures. Mr.. Culberson insisted. /
proved that the New York banks had
withheld money from the outside banks /
whose reserve agents they were, had de- /
cined 10 honor the checks of their indi- /
vdual depositors, and yet held millions /
OF government money which they were
lending at extortionate rates on specula- /
tive collateral
The New York banks IawIessIv and /
without cause suspended payments" said /
the Senator.
Mr.. Culberson charged that the Repub- |
icans had refused to investigate or seek
10 fix the responsibility Of the conditions.
And the executive departments had re-
fused to give information
And the only response to these condi- /
Tons is the so-eaIIed AIdrich bin. which .
seeks to increase the speculative condi- /
tions and give more power to those who
seek 10 pile up fortunes by speculation at
the expense Of the government and the
people he concluded.
Senator Hopkins, Of Illinois made a
brief reply declaring that every aecusa-
tiOn made by Mr.. CulbersOu had been an
SWered in the report Of Secretary CorteI-
you. lie read long excerpts therefrom to
support his statement