The Washington herald., 1908-01-14

The Senate yesterday INDUCED In a
brief but spirited debate on the action
Of the Secretary of the Treasury recently
IN going to the relief of the money
market by issuing Panama bonds and 8
per cent Treasury certificates.
Senator Tillman, of South Carolina,
opened the debate by inquiring of Senator
Aldrich, chairman of the finance com
mlttee. whether there had been a reply
from Secretary Cortelyou to the resolu-
ton adopted by the Senate, calling for
full information as TO the allotment of
Panama bonds.
I called up the Secretary of the Treas
ury this morning about the matter, and
was advised that the report would be sent
TO the Senate Wednesday" replied Mr..
Aldrich
Senator CulbersOn commented on the
delay in sending the report, which, he
said, was unnecessary.
"The Secretary Of the Treasury has
been ill., and that is the main reason
for the delay" suggested Mr.. Aldrich.
BID Higher Than Banks.
read a letter from George II. Kloeberg,
Of Wilmington, Del, who said he had
proposed to take an allotment of the
Panama bonds at 104. but had been
turned down, while banks received al
lotments at 1925. The writer offered to
. appear before a committee and testify.
At the same time, Mr. Tillman read a
wards in which he said: Individuals
whose bids We're greater than $4,000 were
not allotted any Panama bonds
Mr.. Tillman called the attention of
Chairman Aldrich to the fact that this
disclosed that individual bidders had been
refused the bonds at 1o4. while banks had
been allotted them at 1928. This he
said, 1t seems to me. affords an op-
portunity for the Finance Committee 10
make an investigation of this illegal ac-
ton"
Extraordinary" Declares Bailey.
Senator Bailey, Of Texas. characterized
this action Of the Secretary. in thus ap-
parently discriminating against individu-
al bidders in favor of banks, as extra
ordinary. He said the banks had ac-
tualIy made 30 per cent interest on the
purchase Of Panama bonds lie ex-
planned that the agreement under which
the banks took the bonds was that 80
per cent of the purchase money was
really to be left on deposit in the banks,
so that their investment was really only
10 per cent of the purchase price Of the
bonds.
THE explanation given for the issue
of the bonds at the time was that they
We're to be used 10 tempt money out OF
hiding" said Mr.. Bailey. THE money
was not hiding in the banks. but was
being sequestered by individuals, we
were told. The action of the Secretary
in making the Panama loan was all the
more extraordinary because the money
WAS not needed for construction work on
the canal"
Expects Report Tomorrow.
Mr.. Aldrich suggested thar the debate
was premature, in view of the fact that
Secretary Cortelyous report on the whole
transaction would reach the Senate
Wednesday
You are proceeding to discuss a hy-
pothetical case on the statement Of an
unknown correspondent" suggested Mr.,
Aldrich.
Il was not discussing a hypot etical
ease" replied Mr. Bailey. Il was pro-
ceeding on The statement OF fact In the
letter Of the Acting Secretary Of the
Treasury. read by Senator Tillman"
The subject was passed over AT this
point, after Senator TiHman had warned
his colleagues that there would be much
debate in the Senate on the financial
question. intimating that the Aldrich
currency bill would not be passed very
promptly