New-York tribune., 1908-01-24
FINANCE In SENATE.
Cortelyou's Distribution Of Public
Funds attacked and Defended.
TFrorn The Tribune Bureau. ]

| cised the administration OF the natloh > hi"iioo
by Secretary Cortelyou Mr. Stone was freaueh'-
| J., i,+.r-r,+ad bx, senator Beverfdge and others
| An amusing incident occurred when senator
Hepburn, of Idaho. sought to cut OH Aaf o'one >
debate at 2 o'clock. after which the fenai Coue
| bill, of which Mr.. Hepburn has charge mas li'e
| right of way. Mr. Hepburn objected 10 Allowing
| the Senator from Missouri 10 go on with ms
speech. Senator Culberson protested at TINS iaeh
| of courtesy and Senator Beveridge also appea4eu
| to Mr.. Hepburn to give way. Then Mr.. Culoerson
| raised the point of no quorum ana d ioiio+'
| followed. At its conclusion, Mr.. hey yuulh' WIN
| had meanwhile been appealed to by a NUMBER OF
| Republican Senators. asked unanimous consent
that the Penal Code bill be set aside until MI stone
| had finished his remarks By this time MI o'o"o
| was irate, and he promptly objected, whereupoh
| Mr.. Hepburn had the clerk read the next section
| of the Penal Code measure.
| II move to strike out that section. said SEN
| ator Stone, to the amazement of the loaho SeIi-
! ator. and Mr.. President, in support of my mo-
ton I desire to say''-and the Senator from MIS-
souri, continued his financial speech 10 the EN-
| barrassment Of the Senator from ldaho ana 'ne
| great amusement of his colleagues
Mr.. Stone read official statements showing
that August D. 1907. there deposited N ma
tional banks s143 1898. and on December B. 1871.
| So. .117,0S3, increase in three and one-hatr
months OF s7s S34 OS9 He found that this increase
| deposit had been distributed as TO give New
England increase of 47 per cent over the FORMER
amount placed there. the Middle States an increase
"a per cent the Southern States 55 per cent, the
Middle Western States 81 per cent, the western
States II per and the Pacific States per cent
These Increases he said, show startling con-
dition in the deposit of money in the different sec
tons and show TO nv mind an Indifference 20
and utter failure observe the requirements
of the law Boston. he said. in the same perioo
had increase of IS per cent, New York loS per
cent, Philadelphia AZ per cent, Pittsours 81 per
cent, Cincinnati SO per cent. Cleveland 109 per cent
indianapolis per cent. Chicago L3 per cent MIN
neapos and St Paul III per cent. St Louis II per
cent and Kansas City one-third of per cent
Boston," said Mr.. Stone with less than one
third OF the population of Chicago gets pracucaiiy
much OF these public funds for Its nauonaI
banks deposited in the banks OF chicago
Mr. Beveridge inquired whether the Senator from
Missouri had inquired of the Secretary Of the treas
ury why these discrepancies had occurred and MI
Stone replied that he had not addressed any inquiry
to the Secretary the subject
Mr.. Smoot asked If it was not true that Boston
was the centre Of a greater population and Oh a
greater business than Chicago.
II should say not" said Mr. Stone. He said the
capitalization of Boston banks S26.0Oo.0OO and
that Of those Chicago S27.000,Oo0- At the same
time the Boston national banks had on oeposil
$3.50 000, 900, while those Of Chicago had Sl4s'-
0OO. .00O Mr.. Stone expressed the opinion that IL
there had been a equitable distribution OF the
funds of the government the National Bank Of Com
merce of Kansas City would not have failed IN
spite of all this" he said the Republicans from
the West here are crying -Halleujah to Roosevelt!
a
Upon having his attention called TO his hgures OF
58 per cent Boston and 123 cent for Chicago
es the amount OF increase IN government oeposl1s
from August % to December 3, Mr.. Stone SAID the
statement incorrect and that the figures had
been about equal, the discrepancy, he Claimed
being from the fact that the population OF Chicago
is three times great as that of Boston
Mr.. Burrows said that he had statement OF the
distribution OF money referred to from August =
TO December 3, 1907, and IL showed that New Eng
land was entitled TO 1Gz per cent and received oa
per cent The Eastern states were entitled TO 4i1s
and received 90 per cent the Eastern states and
New England together were entitled to 90 per cenf
and had 5515 per cent Of the deposits The SOUTH
ero states as a whole were entitled under an
equitable distribution to L Ia per cent anc received
13 per cent The Middle West was entitled to D
per cent and had per cent, ard the Pacific states
were entitled TO "A and received 612 per cent MT
r,rroyvs said he had made his calculations the
basis Of capital and surplus OF the benhs IN the
several sections he had named.
In answer to a statement by Mr.. Stone that
Southern and Western banks send their money to
M work. MT Beveridge declared that they did
So merely in order receive the large rates OF In
terest and not because Of any control exercised
over them.
Mr. stone declared that the Treasury Department
had in three and half months placed 81, 1000 in
the hanks Of New York, an order that they might
loan II OUT and ST. Louis bankers had told him
that while their money was out Of reach in the
New York banks they had gone to that city and
had bought currency 1heTe paying AIoll II ~
Der cent for IT.
..7,hrae per cent was paid" declared Senator
Teller.
If he CAfr. stonel had made the distribution OF
this money he said, he would have taken into con-
sideration the population and the geographical 10
cation OF tie states, and would not have made 1t
on the basis of the capital and surplus OF banks
Senator Teller said he believed the recent fnan-
cial- trouble had resulted from the banking system
OF the country and had not grown out Of the ad
1nistration Of 'It IS possible. he said that
the Treasury Department did not distribute the
money proportion either 20 the banking capital
or Of population but there was one storm centre
Of the whole trouble We did not need any money
in the West Colorado did not need money, al
though It is that Colorado banks had 81. 1.oO
coo in New York banks. If true. that their
own fault, as there were other cities IN
which they might have kept their funds. The ques-
ton before the department was how it could best
serve the public interest distribution of this
money
In nv Judgment" the Colorado Senator de-
clared the Secretary Of the Treasury could not
have served the country better than by putting the
money New York City. There were twelve
fifteen trust companies that were in condition to
go to the wall They needed the money The
banks came to their relief If they had failed
there would have been a failure OF banks practi-
cally all over the country. The people in the West
had as much interest in maintaining the integrity
Of these trust companies the people in New
York This is the age of criticism of people who
have money They have been charged with having
brought on this panic. Some of the rich men of
this country who have been paraded in the maga-
zines as people inordinateIy rich put up prac-
fcalIy their entire capital to tide disaster IN
the panic. One man put up S4O0OO.GOo Some Of
these rich could have made great deal OF
money by letting the banks fail"
>
PANIC CAUSED BY EARTHQUAKE.