The Montgomery advertiser., 1908-01-14
CANAL BONDS
 UNDER FIRE Cortelyou Both Attacked
 and Defended. SENATE AWAITS REPORT
TilIman's Resolutions Referred to
 Committee on Finance.
MT. Aidrich Assures the Senators that Report of Secretary Of the Treasury Would Be Be-
 fore Them Wednesday.

f :
 washington, Jan 1S.-After short discussion Tn the Senate concerning the recent bond issue of the Treasury De- partment. 1t was agreed. before taking up the question in detail to await a report Of the Secretary of the Treas ury. which Mir. Aldrich assured the Sen ators would be before them on next Wednesday.
 Mfr. Clay of Georgia asked whether the Secretary would be required to make q report of these facts by law Mir. Aldfich replied that he believed he was SO required. but there was TO pro- vision Of law st.pulating how the re- port should be made.
 Mr Cuiberson Insisted thatsthe duty of the Secretary under the law was to make such Q statement on or before January l for the preceding year, con cernins deposits of public money. He said he had not seen any such state- mert.
 Mr. TiiInan referred to two resoIu- tions py him which had remained on the calendar since December 9, calling for information concerning clearing house certificates and the bond issues and said he thought it would be best to let them go to the Committee on Finance without attempting to pass them without reference to that com niittee. He said he wished to lay some correspondence on thls subject before the committee, and had read a letter from George Fl. Kloebers of Whining. ont Del. stating that he had bid an average of 104 1-2 for $10.000 of Pana. ma bonds and had not been awarded any of them. although they had sold for 1O2 1-2. Mir. Tillman wanted to know how It happened that the bonds had been sold to the banks at a lower price, and denied to citizens who bid higher for them. He read a letter from Assistant Secretary J. H. Edwards of the Treasury Department, to Mir. Kloeb- CTS as follows: .g rIn reply to your inquiry of the I7th instant. you are Informed that indi- than s1a,Qoo were not allowed any bonds.
 He also read another letter rom e corfespondefit in Augusta. Ga.. who wanted to know how 1t Mad happened that the Secretary places vast amounts of currency in New York baflks' to re- lieve the financial stringency, while these banks charge 1-4 per cent pre- mum on this money to Southern banks. The stringency seems to be a source of profit to some one" MT. Tillman's correspondent added.
 "a. Mr. Bailey of Texas wanted to know whether MT. Tillman's Delaware cor respondent was the man who had in- stituted q suit against the Secretary of the Treasury in the matter of award of these bonds.
 Mir. Tillman did not know whether the in1unction suit had been brought by his correspondent
 'As, some courts have been so glad to issue injunctions," said MT. Bailey, 'I think they would be glad of an op- portunity In this cases think this course on the part of the Secretary all the more remarkable in view of the fact that the very purpose of issuing these ebonds was to attract the money that was in hiding. You might attract 1t from places where citizens had 1t. but not from the banks. part of the understanding under which these bonds were issued. was that 90 per cent of the money received from their sale would be left on deposit with the banks"
 "If that be true" he declared. the banks received from the government interest at the rate of 30 per cent per annum."
 Mir. Tillman remarked that he would wait for the Secretary's reply. Mr. Tillman's resolutions were referred to the Committee on Finance and the dis eussion of the financial question was suspended awaiting Secretary Cortel- you's response to the Senate inquiry.