Los Angeles herald., 1908-02-07
CULBERSON
GOES AFTER
BIG SHARKS
SHOWS Up NATIONAL BANKS IN
GOTHAM
SENATE HEARS LIVELY SPEECH
FROM TEXAS soLoN
AIaska-YulSon Exposition Bill Passes
Upper House, Opposed Vigor-
cusIy by 5urkett, but
Supported by TiIlman
By Associated Press.


a government exhibit at the Alaska
Yukon Pacific exposition were the chlet
features of interest in the proceedings
of the senate today.
Mr.. Culberson gave the results or ms
ANALYSIS of the recent report OF the
secretary of the treasury on the ran
anna bond issue in order to supslan-
tiate his contention that the national
hanks of New York city We're unduiy
favored by the secretary in the dlspo-
sition of public funds and had violated
the law by issuing those bonds.
The last hour of the day was deVoted
10 a further consideration of the plu
TO revise the criminal laws OF the
United States. 49, +ba
secretarv of the treasury by his report
Ia The senate has raised an issue OF
fact as to whether national banks IN
New York used the SIS, 10000 of pubic
money deposited with them for specu-
1ative purposes. or whether the money
was used to meet the demands Oh OUT
side banks for reserve purposes
Failed to Take Action
Mr. Culberson complained that tne
committee on finance had failed to take
anv action on the resolution in direct
ing that it inquire into the causes Vi
the present financial stringeney' A.,
He 0GCldreQ litetl AAtS
secretarv of the treasury hau SHOWN
+baf that office had violated the law
~ issuing the Panama bonds because
money for the canal was not neeoe1,
I'D that he had violated the law IN
awarding these bonds to natonai LAIlhs
insread of individuals and in using Ine
proceeds of the sales for the purpose
SET forth in the report, ana not lol '"e
construction of the canal.
IN issuing the 3 per cent certlncates
the secretary also violated the law ar
Culberson said, because they were I,ot
used for the purpose PROVIDED py tnS
statutes. as there were ample luluS
for such purposes. ..ou,, hod
Moreover, he said. the secretary na Tau
can1z as the law limits the basis OF
such notes to registered bonds Oh inc
Trnited States and to Panama bonds
he had also failed TO distribute TINS
noonev as provided under the act OIL
March 4 1907. His distribution was
ineouitabie. said Mr.. Culberson. as tne
money was used by the New forA
banks for speculative purposes
Gives Telling Figures
s"rhe public money deposited IN tn $.
national banks of the Onlte1 90 1ooI1
M C,uIberson. ION March %, 1907,
vas $40. 600. 900. On December the
amount reached the enormous sum OF
@ooe mn 00O In New York city alone
~, NTa,.cb % the amount on deposit
there was $14.0O0,000. August y SO 80
600 600 and on December St5,VVV,OVV'
'"New York city, with about one re-,
sixth of the capital and surplus OF an
tba hanks. secured one-third of all the
n,,bIic money on deposit t. eastern
States. including New York, having
onlv about three times the capitl anu
sl1rnlus of the southern states, were
given four times as much OF the pupnc
money"
Mr.. culberson charged that the re-
mort of the secretary OF the treasury
contained a denial of its own state
sThe secretary of tho treasury he
ss3d "savs in effect that $25,000,0O0 OF
apecie held by the New York banks
and $40. 1000, 600 of reserve was used 10
meet the call of outside banks whose
reserve the banks OF New forR ao ~;
whereas, the report of the secretary
shows clearly that the amount which
the New York city banks owed all
other national banks decreased between
August % and December only SlO,-
S20.511. and it is significant that az,
though the New York city banks did
not pav TO the banks outside OF that
citv more than this s1O,S2O.511 they
Increased their loans and their dis
counts during the same time $3Z'OOO'-
000'
Mr.. CuIberson exclaimed:
Il want these figures to ring in the
cars of the American people.
Mr. Culberson, continuing, said:
s'These figures show that while this
manic was on and while individual de-
nositors we're clamoring for their
money; while the New York banks
were issuing clearing house certificates,
while the outside banks were demand
ing their reserve the national banks
Of New York increased their loans and
discounts by 63,000,000
Seattle Exposition
Mr.. Burkett said this afternoon that
the proposition to hold the Seattle
Yukon exposition did not originate In
Alaska. The senate argued the bill for
some time
1T has been put forward" said Sen
ator Burkett, "by lot of boomers of
Seattle, who purpose to boom their
real estate and their private interests.
THE men who promote the exposi-
tions.o said Mr. Burkett, ARE not the
men who have to bear the responsible
ity for the bills incurred.
"They start an exposition" he said
'sand unload their ideas on the COM
muntiy and then demand our money
and the money OF every nation on earth
TO pay for st."
Mar. BurkeIL READ Il llSt OF eNpOSlllOils
in the United States. showing that
S20,960727 had been expended by con-
gress in aid of them.
Mr.. Tillman supported the idea OF
holding expositions. saying that the
Charleston exposition had brought g
great many people from the north tc
the south TO be civilized there. He
believed in expositions I'm order to en-
courage travel among, the people from
one section to another
Senator Depew advocated the pass
age OF the bill in speech in which he
asserted that the failure of jamestown
exposition was due to it's location
If" he said, sit had been located al
Richmond it would have been sue.
cessfuI."
"John Smith and Pocahontas" h,
said, make beautiful picture on can.
vas, but they do not materialize fol
an exposition"
I believe" he added, "that the belle
Of Pocahontas can be found in hun.
dreds of patriotic Americans If yol
take the genealogy which they them
selves furnish"
The passage of the bill followed.
-
Alaskan Attorney Appointed
WASHINGTON. Feb. 6.-The presi
20, "A faart.