The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1908-02-13
INVESTIGATES
TREASURER! (!
SxdS Senator Declares
COrteIyOu'S Report to
Senate Contains De-
NAL of Own State
ment.

Washington, Feb. 6.--In a speech
|the senate today, Senator Culber.
! declared that the secretary of the
Sasury by his report to the senate
5 raised an issue OF facts as
5etber national banks In New York
ID the $S5 900, 600 OF public money
bosite with them for speculative
fposes or whether this money was
ID to meet the demand OF outside
bks for reserve purposes.
)enator Culberson declared that
report OF the secretary of the
tasury had shown that that Office
q violated the law in issuing the
hama bonds because money for the
BAL was not needed and that he
D violated the Law in awarding
Use bonds to national banks, in
lad OF individuals and in using the
)ceeds of the sales for the purpose
forth in the report and not for
construction of the canal.
n issuing the per cent. certifi
es the secretary also violated the
4, Mr.. Cnlberson said, because they
Re not used for the purpose pro.
ed by statutes, as there was ample
ids for such purposes. Moreover,
said, the secretary bad violated
law in using the per cents, as
law limits the basis of such notes
registered bonds of the United
ties and not to Panama bonds. He
b failed to distribute this money
provided under the act of March
1907.
BIS distribution was iuequitable,
b Mr.. Culberson, as the money was
Id by the New York banks for
|culative purposes.
1.-THE public money deposited in
national banks Of the United
|tes,'' said Mr. Culberson, ION
fch %, 1907. was sl40, 900, 900. On
fember the amount reached the
|rmous sum Of 1929, ,0O0,O 900. In
k York City alone on March %
amount on deposit there was $l4,-
1000; on August %, S2S, 200, 900,
New York City, with about one
fb Of the capital and surplus of all
banks, secured one-tnird of all
public money on deposit. The
tern states, including New York,
ling only about three times the
|ital and surplus of the southern
fes. we're given four times as
fh of the public money.
r. Culberson charged that the re-
Z OF the secretary of the treasury
|tained denial OF its own state. |
bt.
|'The secretary of the treasury,
said, STATED that s25, 900 900 OF |
pie held by the New York banks |
$40, 600, 600 Of reserve was used |
meet the call OF outside banks |
bse reserve the banks of New |
fk hold, whereas, the report of |
secretary shows clearly that the |
bunt which the New York City |
\ ks owed all other national hanks |
|reased between August - aud |
eember , only sl0,s20, ,5ll, and it |
|igniticant that although the New !
Fk CITY hanks did not pay to the |
ks outside OF that city more than |
; $40, ,5ll they increased their
hs and their discounts during the |
be time 81, 900, 900"
|r. Culberson exclaimed; II want I
|se figures to ring In the ears OF /
American people. /"
continuing. Mr., Culberson said
|hese figures show that while this /
lic was on, and while individual 1
|ositors were clamoring for their /
hey, While the New York banks I
fe issuing clearing house certih- |
es, while the outside banks were |
banding their reserve the national /
] ks OF New York increased their !
rs and discounts by S6a. coo. 600. -