New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-04

ment had authority to issue such a
statement on behalf Of the Treasury
was asked.
mo one had such authority was the
reply.
THAT statement was issued on NO
vember 22. II was printed consplcu-
ously in Mr. Munsey's newspaper ana
il has never been denied or repudiated
by Secretary Williams or any one else
in the Treasury Department, although
il has been used to the manifest pen
eft of the Munsey Trust Company
was suggested
Secretary Takes Blame.
Then Secretary Williams's loyal sec
rotary undertook 10 assume the Diane
for this situation by saying that prop
ably he was himself at fault IN not
having called the matter to Mr.. Will
iams's attention.
1t is learned to-day that prior to Inc
Tribune's publication of the part played
by Assistant Secretary Williams IN the
requirement by the Munsey lrust
Company of the United States Trust
Company the President had had under
serious consideration the appointment
of Mr.. Williams as a member OF the
Federal Reserve Board TO be created
by the pending currency bill. Ihere 49,
in fact, no indication that the Ihlel
Executive has abandoned his purpose
in this respect. although ii is SAID IN
financial circles that unquesuonaoIy
the President will not pursue that
course until and unless Secretary
Williams is completely exonerated
from the charge of partisanship as the
result of a Congressional investiSa-
ton.
Friends of the administration VINO
are seeking to prevent Congressional
investigation by the declaration th2t
such a step would probably result in
run on all the savings banks in Wash
ington, in which city there is an I'M
usual number Of depositors of that class
are met by those members OF Congress
well informed on financial matters
with the statement that there would
be nothing in such an investigation u
precipitate a run on the banks; that
there has been nothing disclosed even
10 suggest that the Munsey Trust Com
pany is not entirely responsible and
that the sole question at issue is
whether or not Assistant Secretary
Williams exhibited undue favoritism IN
promoting the requirement, practically
without compensation, by the Munsey
Trust Company of the S4OOO,OOo and
more deposits Of the United states
Trust Company.
Tribunes Bought Up.
The Tribune story caused sensation
I'm Washington to-day, and by lO:oO
a. m. it was impossible to purchase
COPY of the paper in this city even the
supply Of the news company having
been exhausted. There were rumors
that an attempt had been made TO buy
UP the issue, based probably on the
ldCl lHdl many pun . nav SNNe''N
the entire supply of the news dealers
they found possessed of copies.
At the Commercial Club the copies
customarily taken there were in con-
slant demand, and at one time twelve
men were seen trying simultaneously
to read single copy. Newsdealers
said that early in the day purchasers
had come to them. inquired how many
copies of The Tribune they had, and
bought their entire stock, whether II
was twenty or forty or more papers.
There was almost unanimous con-
firmation and communication OF the
Tribune's story by the local bankers
although all of them feared TO incur
the hostility Of the administration by
expressing their views for publication
They pointed to the wide discretion
confided to the Treasury Department
under the law, a discretion which II
used TO vent a spleen could be made
at least materially to curtail the profits
of their stockholders, as their reason
| for refraining from commenting the
dispatch over their own names.
Some of them added that under the
pending currency bill still greater lat
| itude in the matter Of favoritism would
| be possible and that any bank which
| incurred the enmity Of the administra
ton at this time would undoubtedly
suffer severely at the hands Of the pro-
posed Federal Reserve Board.