Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1908-02-06
RESPONDS ATLAST
After More Than One Month, Cor
teIyOu Sends to the Senate
fta Statement.
REsAROING BOND ISSUES
Tells Why National Banks Got Them
All and Justifies His Own
Acts-Deposits In
1921 Banks.

| Washington, Jan. 30.-In response to
a resolution agreed to by the Senate
on December IL, 1907, the secretary Of
the treasury Wednesday transmitted to
that body detailed statements concern
ing the award of the Panama bonds
and three-per-cent certificates, together
with recent financial transactions OF
the government, and also embodying
information as to the general state Of
the nations finances during the closing
months Of 1907-the period over which
the recent financial panic extended.
Secretary Cortelyou before analyz-
ing the crisis and setting forth his
official 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
special report was compiled.
Secretary Cortelyou defends the is
sue of Panama bonds and treasury GER
tifcates by saying that 1t was advis
|,able to take some strong and resolute
step which would convince the public,
both at home and abroad, that the
government was thoroughly alive
the situation and determined to give
its aid in every possible legal and
proper form.
THE legal right of the department
to make allotments of the bonds and
securities to such persons and banks
and in such amounts as it might see
fit can hardly be called in question In
view of the fact that the circular of
fering the Panama bonds contained
this distinct provision:
"The department also reserves the
right to reject any or all bids, IL
deemed to be to the interests Of tn
United States so to do
1.-THE total bids for the Panama
canal bondsfpcoontinues the secretary,
amounted to 1920, 1904 $50, or more
than A times the amount offered. This
fact, not heretofore made public, would
have stamped the loan as an even
more remarkable success than It was,
If all these bids could have been re
garded as made in good faith by re-
sponsible parties. Examination Of the
bids showed, however, that many OF
them we're not only speculative IL
character but that they were made in
many cases for very large amounts by
those who were personally irresponsi
BILE and incapable of having made even
the smallest preliminary payment II
such payment had been required"
Details OF the distribution appended
to the report shows that the present
deposits are divided among 1,421
banks. Considerable space is devoted
to showing that great care has been
taken in distributing the deposits and
much consideration is shown to COM
munities where particular trade move
ments involve special demand for
currency at certain intervals.
The senate was entertained by
series of animated comments on the
method adopted by Secretary Of the
Treasury Cortelyou in placing before
the senate his reply to the resolution
calling for information relative to the
operations Of the treasury department
in connection with the financial dis
turbance. The secretary had had the
part Of his reply printed
and copies Of the pamphlet were on
the desks of all senators, which was
declared by democratic senators to be
vjtbnpt precedent.