The Montgomery advertiser., 1908-01-24
FINANCE DISCUSSED
CONTIGUOUS DISTRIBUTION or
MONEY IN PUBLIC DEPOSIT



Of Missouri. today discussed In the
Senate. his resolution directing the
committee on finance to report as>to
the distribution OF money In public
depositories by the secretary Of the
treasury.
Mr.. Stone read from official state
ments showing that on August %. 1907.
s22s.117.os3. an increase In three and
one half months of s7s.ss6s0ss. He
found that this increase in deposits
had been distributed az 10 give New
England an increase OF forty-seven
per cent over the formeramount placed
| there. the middle staes an increase OF
ninety-four per cent; the Southern
States thirty-five per cent: the Middle
the Western States ten, and the Pacific
States nine per cent.
these increases" he said. SHOW a
startling condition in the deposit OF
money In tho different sections and
shows to my mind an indifference to
and an utter failure to observe the
requirements OF the law"
Boston. he said.>in the same period
had an increase OF fffty-eight per
cent; New York 1853 per cent; Philadel-
phfa sixty-seven per cent: Pittsburg
seventy-six per cent; Cincinnati ninety
nine per cent: Cleveland 1863 per cent?
indianapolis nine per cent; Chicago 1z3
per cent; Minneapolis and st. Paul 1T
per cent; st. Louis seventeen per cent,
and Kansas City one-third OF one per-
cent
Boston" said Mr.. Stone, with less
than one-third of the population OF
Chicago gets practically as much OF
these public funds for it's national
banks as was deposited In the banks
Of Chicago"
Mr.. Bsvsridge inquired whether the
senator from Missouri had inquired Of
the Secretary OF the Treasury why
these discrepancies had occurred ana
MI Stone replied that he had not adj
dressed any inquiry to the secretary OF
the treasury on that subject.
Mr.. srnoot asked II II was not true
that Boston was the center of greater
populatlon and Of greater business
than Chicago.
II should Say not" said Mr. store
Mr.. stone said the capital d. 10 Of
Boston banks was e2s.000.e0o and that
those Of Chicago 3a7.00o,0oo. AZ the
sans time the Boston National banks
had on deposit $50. 900 while the
Chicago, banks had $4,000. 900
Mr.. stone expressed the opinion that
II there had been . more equitable dis
tribution OF the funds OF the Govern.
nent the National Bank OF Conn
merce OF Kansas City would not have
failed.
In spite Of all this" he said. ''the
Republicans from the West here are
crying Hallelujah TO Roosevelt and
are calling for continuance Of his
Upon having his attsntion called to
MS n9ures OF IS per cent for Boston
and i2s per cent for Chicago as the
amount OF increase in Government de-
posite from August az to December 9.
Mr.. stone said the statement was In.
correct, and that the figures should
have been about equal.
Mr.. Burrows said he had = statement
Of the distribution of the money re-
farred to from August % to December
., 1907. and 1t showed that New Eng
land was entitled to 10 Ia per cent,
and received s la per cent. The East
ern States were entikled to AZ la per
cent aud received 50 per cent; the
Eastern States and New England States
together were entitled to IS per cent
ana had received IS Ia per cent Of the
whole Were e.titled under an eduit.
able distribution OF 10 LIZ per cent, and
received ID per cent. The Middle west
was entitled TO 2s Ia per cent ana re-
ceived 20 per cent. The Western States
were entitled to s per cent and had re-
cetved per cent and the Pacific states
were entitled to la and received
la per cent.
In answer to statement by Mr..
Stone that Southern. and Western banks
send their money to New York, Mr..
Hevertdge declared that they did SO
merely In order to receive the larger
rates Of interest. Mr.. Stone declared
tnat the Treasury Department had In
Shree and q half months placed S4T.-
100000 in tho banks of New YORK. an
order that they might loan It out" ana
~. Louis bankers had told him that
while their money, was out OF their
reach in the New York banks thew
had gone to that city and had bought
currency there: paying from 1-s to
Tnree per cent was paid" declared
Senator Teller. II he (Mr' ston6
had made the distribution of the money.
ne said he would have taken into
consideration the population ana the
geographical location OF the States.
and would not have made It on are
basis OF the capital and surplus Of
Senator Teller. upon the conclus,on
OF Mr.. Stones speech, said he he
lieved the recent financial trouble had
resulted from the banking system az
the country, and had not grown out
OF the standardization Of the law.
1T is possible" he said, shat the
Treasury Department did not distrih-
aSS INC AAoupy ~ pEOpoEGOn either to
the banking capital or OF population.
but there was one storm center of the
whole trouble. The question before the
Department was how 1t could best serve
the public in the distribution of this
money,
I'm my judgment" the Colorado SEN
ator declared. "the Secretary OF the
Treasury could not have served the
country better than by putting the
money in New York city. There are
twelve or fifteen trust companies there
that were in condition to go to the
wall. They needed the money. The
banks came to their relief. n they
had failed there would have been q
failure Of banks practically all over the
This is the age Of criticism of peo-
pie who have money. They have been
charged with having brought ON this
panic. Some OF the rich men of this |
country, who have been paraded In the |
as people Unfortunately rich. |
put up practically their entire capital |
10 tide over possible disastrous panic. |
One man put up 100000. Some Of
these rich men could have made a great |
deal OF money by letting the banks |
fall" ....- .
The Senate then proceeded to con-