The semi-weekly messenger., 1908-01-28

the horn IN OrQer IlaI Ie may SHOW
that we have some spirits left for war
If war should come"
He branched OF on he subject Of
Panama canal and defended the ex-
penditures for it. Consideration of the
bill had not been concluded when the
House adjourned at 4:40 D. m
THE SENATE.
Senator Stone, of Missouri, today
presented statistics Of government de-
posts in national banks to show that
the distribution Of money during the
recent currency stringency was not
equitable as contemplated by the law
governing the treasury department.
He declared that the west and south
were Disseminated against while
His speech was on his resolution pend
ing in the senate directing commit
tee to investigate and report the
facts in these transactions.
Mr.. Stone read from official state
ment showing that on August %,
banks $143,2S2, 1893 and on December
3, 1907 $223. III ,083 an increase In three
and one half months of 1884 ,089.
He found that this increase deposit
had been distributed so as to give New
England an increase Of At per cent.
over the former amount placed there,
the middle states an increase OF "a
per cent; the southern states 35 per
cent; the middle western states 81
per cent; the western states 10 and
the Pacific states 9 per cent.
These increases" he said, "show
a startling condition in the deposit
of money in the different sections and
shows to my mind TN indi:f1rence to,
and an utter failure to observe the
requirements Of the law.
Senator Burrows, Of Michigan, said
that he had statement of the distri-
tuition of money referred to from Au-
gust %, 1907 and December 3, 1907
and it showd that New England was
entitled to 10 1-2 per cent, and re-
ceived 5 1-2 per cent. The eastern
states were entitled to "A IL and re-
ceived so per cent; the eastern states
and New England together were en-
titled to 55 per cent; and had 55 1-2
per cent of the deposits
The southern states, as a whole,
were entitled to II 1-3 per cent, and
received IS per cent. The middle west
vas entitled to % IL Drr cent, and
received 20 per cent The wesleTu
states were entitled to per cent,
and had four per cent, and the Pa
cific states were entitled to IL per
and received IL per cent
Mr. Burrows said he had made his
calculations on the basis of capital
and surplus of the banks in the sew
eral sections.
In answer to statement by Mr..
Stone, that southern and western
banks sent in their money to New
York, Mr.. Beveridge declared that
they did SO merely in order to receive
the large rates of interest and not
because Of any control exercised ov-
e. them
Mr.. Stone declared that the treasury
department had had in the last three
and one half months, placed SAT ,O00,-
600 in the banks of New York In
order that they might loan it out"
If he (Mr. Stone.) had made the
distribution of this money, he said
he would have taken into considera-
ton the population and geographical
location of the states and would not
have made it on the basis Of the Capl-
tai and surplus Of banks
Mr. Teller followed with brief COM
ments upon the action Of the secretary
of the treasury declaring that the
placing of money in New York city
during the panic was fully justified. He
paid a high tribute to the rich men
who he said had promptly offered prac
tically their entire capital in order to
stem the tide of disaster in that city
which threatened the entire country.
ut is possible" he said that the
treasury department did not distribute
the money in proportion either to the
banking capital, or of population, but
there was one storm center of the
whole trouble.
I'm my Judgment" he declared. ''the
secretary of the treasury could not
have served the country better than by
putting the money in New York city.
There were twelve or fifteen trust COM
panies there that were il a condition
to go to the wall. They needed the
money. The banks came to their re-
lief If they had failed there would