Los Angeles herald., 1908-01-30
COR TEL YOU
DEFENDS ACTS
DURING PANIC
SECRETARY OF TREASURY SUB
MlTS REPORT
PRINTED DOCUMENT plsPLEAsEs
SENATORS
Cabinet Official Asserts He Did Noth-
ing Beyond What Was Im-
posed on Him by
the Law


~ Associated Press.
WASHINGTON, Jan. 29.-The reply
of Secretary Cortelyou to the senate
resolution calling for information con-
corning the operations of the treasury
department in connection with the re
cent financial crisis, was laid before the
senate today by the vice president.
The document was not read, but 4
printed copy of it war on the desk Of
each senator. Mr.. Culberson inquired
of the vice president whether the
pamphlet contained all of the secre-
tary's communications. The vice pres
ident said he had not examined the
report and did not know whether the
pamphlet contained all of the message
Il do not recall an Instance said
Mr.. Culberson, Tin which head of a
department of the government has an
swered senate resolution in printed
FORM
Mr.. Aldrich said all reports Of the
secretary Of the treasury are made to
the senate in printed form. Mr.. Miller
retorted TO this suggestion by declar-
ing:
Raps corteIyou
THE secretary of the treasury is as
Stunning the airs of president before
he is elected to that Office. The presi-
dent sends his message in this printed
form, but I have never known a cab
met officer to assume to do this BEFORE
Senator Carter of Montana referred
to Constant opportunities" that had
been heard in the senate for an imme-
date answer to the senate resolution
by the secretary of the treasury.
Had the secretary of the treasury
delayed in making this reply" he
added, The would have been criticised.
N0uy fHfu aVF1afifffng1u rrN0fha6 af To- inc
his reply before the senate is made SUBJ
Ject for criticism. How in the world
gould the secretary of the treasury
have pleased the senators from South
Carolina and Texas?"
The report, which is accompanied by
y long letter from Secretary Cortelyou
TO the president of the senate, en-
braces a list of depositaries and the
amount of money placed on deposit
therein IN various states; list of
ether banks with the amounts of ma
fional deposits and the security held
therefor; statements showing the con-
dition Of banks on August %, 1907, and
December 3, 1907, and the amount of
bank notes outstanding at various
periods; lists of banks and individuals
who received Panama canal bonds and
lists of those who bid for the bonds
without receiving an allotment, and
subscriptions OF per cent certificates
of indebtedness; data concerning
clearing house certificates issued dur
ing the panic and budget of circu-
lars. press announcements and corre-
spondence relating to government
financial transactions that took place
during the period mentioned in the
resolutions.
Secretary Cortelyou, before analyz-
ing the crisis and setting forth his Of
fetal actions in regard to the report,
gives a summary of occurrences In
the United States financial world from
the time he assumed charge until the
epecial report was compiled.
He states that the business condi-
tions were becoming unsettled when
he became financial member of the
cabinet in March, 1907. Various strin-
gencies occurred prior to August.
which were promptly relieved. A plan
Of weekly deposits of government
funds in various banks was begun on
August 2S. BY October IA these de-
posts had reached a total of $2S 600.
In October occurred the stirring events
IN New York which eliminated in the
closing of the Knickerbocker Trust
company and the decision of New
York banks to issue clearing house
certificates.
Money Put in Banks
The treasury transferred to national
banks within a few days the sum or
$s5,000,000 and transmitted TO NE"
York within three days about $685.
100000 In small bills. In New York
citv alone, the report shows, clearing
house certificates were issued in ex-
cess of S10C, 100000.
Bv the middle of November the
treasury had met the demand for re-
lief to the extent that the working pal
ance was reduced to approximately
$4,000 600 It became apparent that no
further deposits could safely be made
Parks were permitted to substitute
bonds suitable for savings bank IN
yestments for government bohos
which were held as security against
rublic deposits. Government bonus
were thus released as additional Dank
note circulation. After the issue OF
Panama canal tonds and treasury GER
tificatss the bank note circulalloh De-
can to increase until it stood on De
cennber 81 $3.50. $780, 1886, as against sooi,-
71sl742 on october Is. On January 10
1ooe the issue had reached $685., 92o, sO6.
ssq-ha announcement of the United
states of the new securities by the
treasury. says Mr.. Cortelyou' fnarheo
in some degree the turning polhI VI
the panic. No further Steps were IN
sfdered necessary except to continue
the deposit of public moneys Tor :
fine where they. were available, anc
early in December il became possible
10 replenish the cash in the treasury
nv the withdrawal of about $6.oOOuOs
from national banks in New York CITY
This was followed on January y by
another call for $10,000.000 from New
work. banks This will be followed
soon nv a call on outside banks based
1Ipon local conditions rather than upor
a fixed percentage of their holdings Of
public money"
Immense Sum Disappeared
The amount of currency which dis
anneared from circulation from the
time Of the suspension of the Knicker-
hooker Trust company until confidence
was practically restored in December
IS stated as approximately $296,OOO,OO0
This amounted substantially to one
tenth of the entire estimated money
~ circulation in the United States
THE secretary of the treasury touched
unon the gravity Of The situation
abroad as we'll as in this country ant
Gives figures concerning the export o.
merchandise to show the energy witt
xvhich the enonomic resources of th'
country were devoted to the relief o
ire situation, the excess of exports
over imports rising from $1.464.4O4 IL
August, 1907, to $114S9O,665 In Deem
Der, 1907. -
Secretary Cortelyou defends the is
.,,e ~ Panama bonds and treasury GER
tffirafea nv saving that II was advis