The times. [volume] (Richmond, Va.) 1890-1903, 1898-03-31
WHAT MUST THE
POSTMASTER SAY?
A Practical Question in Connection
With Postal Banks.
WHAT FORM OF MONEYT0 BE PAID
If the Agent Were Asked Now He
Would Find Difficulty in Replying
With ANY Show Of Authority.
Questions are interviewer.

WASHINGTON. u. c.. March GA
warning OF the necessity OF planting the
country firmly upon the gold standard
and an argument IN favor OF currency re-
form are embodied in letter which Sec
Rotary Gage has written to Senator VOL
colt. OF the Senate Committee on Post
Offices I'm regard to the Postal Savings
Bank project. Secretary Gage was asked
bv the committee 10 express his opinion
on several lills which are before the SEN
ate Committee. and TO iyake any sugges-
lions for amendment which he might
think advisable. The Secretary. in let
ter written last week. expressed some del
icacy about criticising plan endorsed
by the Postmaster General but stated
that he was urged by the latter 10 speak
with frsnkness In response To the inquiry
OF the Senate Committee. lie limited his
discussion Of the bills 10 the following
| suggestions
In Offering some general reflections
upon the subject which l avail myself
| Of your liberty to do the suggestions l
make are 10 be construed as relating TO
| the proper time for authorizing the Gre
! alton OF a postal savings system and not
as in opposition 10 the proposition itself.
Whatever may be the determination OF
the merits Of the quertion, action looking
TO establishment Of the system should he
| delayed until certain contemporaneous or
previous questions shall be settled.
QUESTIONS TO BE SETTLED.
"The first of these I'm importance is the
money standard which is 10 measure In
| the future the value Of the fund TO the
| depositors. IN undertaking a great idu-
| ciary trust Ike the one proposed a great
| and powerful nation will enter into con-
| tract relations with many thousands OF
| the most humble units composing I'm part
| the national life. The whole proposition
rests upon the theory that these persons
would find in the arrangements proposed
| a guardian whose justice and fidelity
could not be questioned and thus their
! savings, the fruits Of self-denial and in
| dustry be kept effective for their future
needs In dealing with the young. the I'M
skilled. the dependent. the strong and
powerful entering into contract relations
| with such are under the highest oblga-
| tiOns 10 make the contract 50 plain that
the simplest can understand H. And yet
| | discover nowhere I'm any OF these bills
any agreement or pledge as 10 the form
Of money in which depositors are 10 be
| paid This would not be a necessity II
in the tody Of the general laws or
| through a long and settled usage having
| substantially the force OF law this ques-
| ton was universally understood. But
manifestly this is not the present situa-
! ton. If one Of the humblest parties TO
| the proposed contract should ask the
| postmaster agent to whom he should
| hand his accumulated earnings. now as
| good as gold VIII my money. when /
1 Ira,y . ont f,a in cold of. fu fair auufV.
| aent% what answer will you authorize
| your agent TO make? At present he can
| make no specific answer He can point
| TO the current fact that the government
| is now paying gold or its equivalent lie
| can point al clauses I'm certain acts OF
| Congress which declare the policy of the
| government 10 be the maintenance OF
| parity between silver and gold. In short.
| he can show that II these acts remain un-
| repealed and II the discretionary power
according TO the President and Secretary
Of the Treasury under the laws IS exer-
| cised in one direction. they will be paid
in as good money as that they part with.
| But IT, on the contrary, this discretionary
power be exercised In "a contrary direc-
ton. they may be paid in money OF
| much lower commercial value.
DOVE TAILED.
"The postal savings bank system. n
| adopted ought TO be concurrent with or
| closely follow after q general reform IN
our banking and currency system. The
| two ideas should have wise reference 10
| each other. 4 banking currency bill has
been prepared by a subcommittee OF the
| Banking and Currency Committee OF the
| House Of Representatives. Without here
! Offering any argument for or against that
| bin. / note the fact that under u way
could be easily opened TO bring under the
| control Of the public Treasury for pay
ment and cancellation large amount OF
| the United states bonds now held by the
national banks and thus means provided
! for al least partial absorption OF the
postal savings fund ! note further that
I'm five years after January next NlOVOn,-
900 of outstanding bonds VIII mature ana
become payable. and that three years az
terward some 5000 900 600 more Will also
thus mature. with our banking and cur
rency system established on more scien-
tinc foundations. with our money stan
dard taken out of the field OF political
debate with its accompanying uncertain
ties with a postal savings act set In OPP
Grafton in timely reference TO controlling
a fund so as TO retire a part or all Of the
present public debt. the experiment Of
postal savings could be inauguratei under
conditions favorable to the best results
for all concerned. Believing. as / do that
the general proposition is strongly sup
ported by public opinion. which will meet
with final recognition in Congress. yet
feel 1t 10 be for the interest Of the meas
ure that it be held in allegiance until a
more seasonable period for its Inaugural
ton"
MIR. WolcOtt Caustic.
WASHINGTON. March 3O-Mr. VOL
colt, Colorado. chairman OF the Com
mttee on Postofices and Post-Roads.
made a remarkable and caustic arraign-
ment OF the Secretary OF the Treasury in
the Senate to-day on account Of the Sec
retary's alleged fippant treatment OF a
request made by Mr. Wolcott's commit
tee for his opinion upon a postal savings
bank system.
After waiting Tor an unusual time. the
committee Mr.. Nolcott said. had receiv-
ed the Secretary's reply. II have TO re-
port to the Senate" said he. that the
reply was OF such a nature that have
been unanimously instructed by the COM
mitteo 10 respectfully return IL. ] will
not ask here 10 have the letter Of the Sec
rotary read. IL was nippant and imperti-
nent and has no place on the records Of
- 90 10