The Washington times., 1913-02-07
SPRECKELS AYERS
PLOT IS ON FOOT
TO NJURE WILSON
Says He Will Have to Draw Big
Deposits From National
Banks.
Continued from First Pagel

AtOll L
scinded. we win witness a marked
and unusual Increase of deposits, prin-
clpally with the New York national
banks, amounting TO more than 500, ,co0, :
coo IN gold annually in New York alone.
When tthe new Administration takes
charge of the Treasury. 1t will be OBJ
lised TO demand the return OF these
funds TO the Government.
The effect OF the withdrawal of SO
many millions Of dollars is bound 10
cause financial difficulties.
N any case II seems an uncaIIed for
move at time of year when there Is
10 unusual demand throughout the
country for money as is the case DUR
ing the crop moving period.
Il believe the people are entitled to
know who it is that is responsible for
the plan and why 1t was put out at
this time.
Congress should investigate the mat
ter and bring out the facts.
On the face of the Treasury order
there is no specific provision that the
banks s2all give security for the de-
posits and no provision that they shall
pay any interest"
The funds affected by the order were
held in tie subtreasuries previous to
February /, when the order went into
effect. The Government accepts only
gold in payment for duties; the entire
sum involved is gold.
Subject To Call.
Mr. SpBeckels pointed out that IL the
banks made use of the money, they
would have to use il in such way
as TO have It subject to call on notice
from the Government For this reason.
he said, the money would find its way
through the usual channels into Wall
street, to be LOANED out at call. There
fore, Spreckels said, in the event OF The
m Hons beng suddenly recalled, the de-
mand would go directly into the call
money market In New York and force
the immediate withdrawal of enormous
sums.
Should the order remain in effect until
March a, II was pointed out by Mr.
Spreckels, President Wilson would face
situation where to leave the order
in effect would involve the Govern
ments money more every day, and to
rescind the order would cause great
financial disturbances. It is Spreckels'
opinion that the order will be held
Illegal and that Wilson will be COM
PEELED to resctnd IT II 1t is not re-
Friends of Wilson have been informed
REGARDING the situation, and they re-
called Wilson's public announcement
that he would:
Erect gibbet high as Haman's for
a panic" The situation has been pre-
sented to Wilson personally.
49, Is a Progressive.
Rudolph Spreckels organized and con-
Quoted the Progressive Republican VIII
son League IN the recent campaign.
He had supported Senator La Toilette
as long as La Toilette was factor in
the contest. Spreckels is a member Of
the wealthy sugar family of California
and n millionaire himself. He per-
sonaIly. financed the famous graft prose-
cutions in San Francisco
Il shah go to Washington very soon
TO zee that the facts are presented to
prominent members of Congress, If Con-
sress does not act of its own initiative
at once" said Spreckels in New York
today
Denying that there was any iIlegality
behind Treasury order No. 81 and as
sert ng that Mr.. Spreckels had mis-
construed" the order Assistant Secre-
tary Robert o. Bailey. who signed the
order, today made this explanation OF
the change In Treasury procedure in
voived:
Treasury order No. 8 simply in
creases the number of repositories for |
the purpose Of Simplifying check ex-
changing, without materially increasing |
the fixed balance OF national funds in |
national banks. Under the old system
there were $50 national repositories |
CARRYING a total fixed balance OF SiS.-
0oe.00c. Under Treasury order No. the |
number OF repositories is increased to |
55a. and the fixed balance IS increased |
20 about $50. 10000. This means a de- !
crease In each individual bank The |
change was made because We found |
that In disbursing through the sub
treasures much detail work was leces- |
sary.