New-York tribune., 1908-01-14
ATTACK ON CORTELYOU.
DEMOCRATS IN CONCEPT.
SenGte's Inquiries, Mr. -4Idrich Says,
U'W Be 4ns7cered T0-mOrro7c.
From The Tribune Bureau.

From The Tribune Bureau
Washington. Jan. l2.-The feature of to-days
session OF the Senate the apparent deter
rnination OF the minority to probe the admin
istration Of the Secretary of the Treasury and
a disposition severely TO criticise Mr.. Cortelyou.
Senator Culberson. referring to his resolution
calling the Finance Committee investigate
the administration of the governments finances,
insisted that no time should be lost in prob
ing the Treasury Senator Aldrch replied that
he had been informed that comprehensive in
formation would reach the Senate on Wednes-
day.
Senator Clay cited the statute requiring the
Secretary of the Treasury to submit on January
! of each year a list Of securities accepted by
him collateral for federal deposits. and called
attention o the fact that Mr.. Cortelyou had not
yet complied with the law. Senator Aldrich
urged patience and intimated that this informa-
ton would probably be forthcoming on Wednes-
day.
Senators Bailey and Tillman Joined in with
criticisms of the Secretary. and made evident
the determination of the Democrats to probe
Treasury affairs with the hope Of finding some
thing out OF which TO create political capital
Mr Aldrich succeeded in Tending off further at
tacks pending the receipt of the data the Treas
u-y Department is now preparing
When the subject came up Mr.. Clay asked
whether the Secretary was not required by Id"
10 make a report Of the desired facts MI
Aldrich replied that he believed he was SO re-
uuired but there was provision OF law s1pu-
lating how the reports should be mace. MT
Culberson insisted that the duty of the Secre-
ta-v under the law was 10 make such state
nent on or before January for the preceding
year concerning deposits of public moneys
LETTERS TO TILLNAN READ
Mr.. TfIInan referred to two resolutions by
him which had remained on the calendar since
December Q, calling for information concerning
clea ring house certificates and the bond issue.
He said he thought it would be best 20 let them
go 10 the Committee on Finance without at
tempting to pass them without reference to
that committee. He said he wished to lay some
correspondence on this subject before the COM
rnsttee and had read from the Nice-Presidents
desk letter from George H kloebers, of VIII
nington. DEL stating that he had bid an aver
age Of lO41a for $4,000 of Panama bonds and
had not been awarded any of them, although
they had sold for 1o212. Mr. Tillnan
wanted TO know how it happened that the bonds
had been sold TO the banks at a lower price
and had been denied to citizens who bid higher
for them
He also read a letter from ]. H. Edwards,
Assistant Secretary of the Treasury Depart
rnent to Mr.. Kloebers. as follows: In reply to
your inquiry of the 18th inst. YOU are Informed
that individual bidders whose bids were greater
than $4,000 were not allowed any bonds"
He read another letter from q correspondent
IN Augusta Ca who wanted TO know how il
happened that the Secretary places vast cur
rency in New York banks" 10 relieve the fnan-
cIal stringency, while those banks charged IA
per cent premium this money to Southern
banks The stringency seems TO be q source
Of profit 10 some one" Mr.. Tiran's corre-
spondent added.
As some courts have been so glad 10 issue
Nr Pal
would be glad of an opportunity in this case
I think this course the part Of the Secre-
tary all the more remarkable in view of the
fact that the very purpose Of issuing these bonds
was 70 attract the money that was in hiding
You might attract from places where citizens
had =. but not from the banks
ASSERTS PROFIT BY BANKS.
A part Of the understanding under which these
bonds were issued was that 80 per cent Of the
money received from their sale would be left
On deposit with the banks. If that be true the
banks derived from the government interest at
the rate of 50 per cent per annum. The govern
ulent sold these bonds at 1922 and deposited
il the banks 60 per cent of the purchase price.
SO that the SO paiG on each bond actually drew
interest al the rate Of 80 per cent per annum.
It was not intended that this money should
BE- used fer the Panama Canal. but ii was to
relieve the financial pressure. Under the plan
with that profession on his lips, the Secretary
seems TO have declined the money which in
diyidUal citizens were willing to take from their
trunks or other places of hiding, and turned the
bonds over 10 the banks at 80 PEI cent per an
mum
III Timan's resolutions were referred 70 the
Committee on Finance. and the discussion OF
the financial question was suspended awaiting
Secretary Cortelyou's response 10 the Senates 5
inquiry.