New-York tribune., 1908-02-07
OORTELYOU UNDERF FIRE
rulberson Cnticises POlicy-Senate
for Yukon Exposition.
TFrom The Tri0une Bureau I

--sshfncton Feb. e-The feature of to-aay-s ses
&C, n the Senate was an attack the Secre-
.s-v Of the Treasury by Senator Culberson who
sinra7ed that great partiality had been shown
s. y- Cortelyou in the distribution of federal do
,os-s he charged that. while throughout tho
ourt-y the banks had been obliged to retre,,ch
-s steadily decrease their short time loans the
ysr York hanks throughout the financial s,rin-
rs.cy rad increased their shor, term loans which
" t-ubcrson declared be Of a spectacular cb.r
scter Senator Hopkins made an earnest defence
r. IN. Secretary.
| senator Piles OF Washington called m, bis t,,
<ppropriating s7eaooo for the governments mar
,,ci,s1ion in the Alaska Yukon-Pacihc e,,osi,;o
:. seattle IN lses- The measure was sunr,o-+a5 b.
xr Piles and opposed by Senator Burkett Sep-
sor Depew also supported the bill Mir Depew
sooke with all his oidtiIne force and huuor and
,sinied several laughs as he rccounteS p-;,t -,
6roery, some Of his experiences at preyio,,s aD,
positions Al the conclusion OF his speech NJ he
pew Was CONGRATULATED %! many OF his colleagues
sn6 was thanked especially by the Senators from
re Pacific Coast The bll was promptly rasSas
Senator Culberson declared that the Se,,-.,
{, the Treasury. by his report 10 the se,ot. -,
:sise6 issue Of fact az 10 whether na,io,,,,
heaks = New York used the s75a.0po Of ,,,,,,1,.
roneF oeir's4'ea WIN 1he1n for speculative nur-
poses, OF whether this money was used. 10 ~,.a.
TIE demand Of outside banks for reserve purposes
Re declared that The report OF the Secre7ar,- f
tie Treasury had shown that tfar Official -, -.
kied the law IN issuing Panama bonds hecs,,so
noaey for the cana was not needed and thar h.
tsd violated The iaw IN awarding these bonds n
national banks. instead OF 70 Individuals -, =
rs1ns the pToeeeas of the sales for the purposes
SCI forth the report and not for the consTr,,,
ror Of The canal
In issuing the per cent certificates TIE Sae-e
fsry also. Fie3&.ed the laW. M Culberso, s.is
because they =ere not used for the p1Iru.,see ,,-
Flded by me statutes as there were ample funds
fo- sRch purposes Moreover, he said the Score
fary had violated the law in issuing tte > -
cenls H. Law limits the basis Of s,,ct note
-egisterea bonds e the United States and -
Psnsma eonoS lie had aiso failed. it vas de-
cared, TO distribute tiis money as provided ,.,d-
the aC uf March : 1S7 His distribution Mas m
eqHiiaole, saia Nj Culberson the money was
used ey New York hanks for speculative prrr,osas
he sad. in parr-
The public money deposited in the national hanks
e the United States on March - 1897 was sq4a
s "a - .asl % me ne amount reached the
si7ne on March - the amount on denosit
raS E-ee.eoa OF august - SIS 0oe 600 and on ne-
csnloer sSs-Hee-tte- New York City. with atotJr
one-skih n me capital ana surplus Of All fha /
LIZ ss.sS sGIec -5llIg Of al The public money on
e nc 1ss'tIA states including New York
AsFlls oniy about three times the capital and sur-
lus 9. l1e southern states were given four times
as Iauch o. the public money.
The Increase n government deposits in the East
ea,SlaI.eS q Sla.eS from august TO December, 1867. was /
60 ~ ~ increase IN deposits in Southern I
sH-s vas s..re' gvV The increase OF government /
4 q
December S+1900.o .o00. or three ffftlls OF Tho
e1ife increase ot t7e.oeo-ooo- The State Of Texas
VIII .ee9eUo people and q banking capital and !
Trt r7r7,rs-jo,7 ~ 2a0 66t ,S ~, !"
trTius q sN13o-o0o. but s. -3S 600 Of the pub
1 money distributed on December g. while Wash
Ths Secretary Of the Treasury saws in effect that
..se,s eoe Of specie held by tie New York banks
O. Of outside banks whose reserve the banks OF
asE York held, whereas the report Of the Secre-
ar shows clearly that the amount which the
IA (
has decreased between August - and December
ihosFh the New York City banks did not pay to
y hanks outside Of that city more than this $40
EG5u they Increased their loans and discounts
suang the same time SO. 0oo Geo.
- el}tI leeelfeG hH ne ihls morning from th7
FHhstsndine The crisis between August and De
senhs- tn loans ard discounts of the na tional
banks o. New York Ci1H were increased on the
sCuitv ~ stock and bond loans from Sol eonoe /
ans5 en- clia1.raI II Vail Street. ard YET they
szlenoed Payment 70 their individual depositors
ne country, Ard they did il when they had money
f ther treasury with which 10 meet their obli-
CATIONS
The Ald-ich bin he declared. would give the
benks more power and would foster stock and
bn speculation by the banks and still further dis
c-nilare against he general public and in the in
is7sst q the bondholding classes
Senator Hopkins replied briefly Mr. Cuberson,
Eging. in part
Every statement made by The Senator has been
answered h. the Secretary Of the Treasury. and il
any one xii take the trouble read that report
= Ri ma there q complete answer to ali that
1es hsr- beer charged Instead Of the Secretary
sn0EinE fsvo-l-iSrl New York or other banks
= tss been actUatv6 by patriotic principles. and ne
rz1e the cennslrS in New York. Chicago or otner
tzzss because they We're located where the emer-
ssncy existed
ssaato- Iey,ew advocated the passage % the
ssss1s exposition bill in speech ii which he as
srsd thst che failure OF the jamestown exposition
rs d2s % its location.
z he said -1t rad been located at Richmond II
ruld have been successful john Smith and Poca-
naias make a beautiful picture on canvas. bCl
hsy CO not ulatcriaIize for exposition
: believe he ADDED. that the blood OF Foca-
t-rtas can be found in hundreds Of our patriotic
A1s-cans. r you take genealogy which they them
ESes furnish .
brief executive session. IN which the support >
q q the adrnin5stra successfully sought
nave GATE sci for the vote on the confirmation
Colonel Wotherspoon brigadier general foi- |
rTsi the passage Of the exposition bill. The Sen
u then adjourned until Monday, when the AIdrich