The sun., 1908-05-12
POSTAL SAYINGS BANKS AND
THE CONSTITUTION.

debate In the Senate last week on postal
savings dOposltories was interesting by
reason Of the novelty Of the topic. Al
though II has been much written and talked
Of during a third Of q century | had never
heard II debated at close quarters. Con-
slderation Of proposed bill was presented
by Mr.. Carter, = Republican from Mon
tana and a member Of the Post Office COM
mittee. Every other member OF the com
mittee was silent. No Democrat spoke
during the discussion. Apparently solicit
tous over the existence Of constitutional
power in Congress TO create the postal
repositories. Mr. Carter said at the outset
that athe Consultation vestsd In Congress
the power TO establish post onices and
post roads and also the power 10 provide
for the general welfare He did not show
a very visible link between the buslness
Of carrying the mails and using the postal
machinery for accepting small or big de-
posits OF money, paying interest thereon
and restoring 10 the deposltor his dues on
demand He seemed 10 rely on the vague
general welfare clause.
The growth. present size and cost of the
postal service we're interesting features Of
the debate Seventy-fve hundred dollars
Of annual income and expenditure in 1859.
nearly a quarter Of billion Of each, with
81, 900, 900 Of deficit In 1907 and t72O co., 900
Of outlay in 1909. excluding cost OF build
ings. we're startling figures. Not more
impressive. however, than 6Si7S existing
post Offices and as many postmasters, be-
sides postal carriers and clerks, all pre-
sumably working for TaftS nomination.
When one thinks Of that electioneering
force in a single Federal executive depart
ment II Is difficult 10 understand how Demo-
cratic Congressman can sincerely believe
in the election OF a tainted candidate like
Bryan. The only plausible explanation
is that they do not and will be content with
their own resleOtion.
The plan is that deposit may be made by
anybody, young or old, with any postmaster
Of not less than 81 or over 81 900; the money
is TO be put by the postmaster In the nearest
national bank the deposltor is 10 get per
cent interest the bank must pay ~ per
cent, the deposits are to be public funds
exempt from taxation and Servics on legal
process" The last feature caused much
debate.
The bill is contrivance TO enable any
body TO deposit money in national banks
under the guarantee Of repayment by the
Federal Government on demand OF the de-
positor. II was estimated In the debate
that the deposits might average $3.50, 900 900
a year liable TO payment by the banks on
demand.
The advantage in the Western States
where savings banks are few and inaoces-
sible, Of such a deposit scheme with post
masters under Government guarantee is
obvious: but II constitutional for children,
poor people and small sums, why not for
grownups. the rich and large sumsl
Very early in the interesting discussion
occurred the following conversation;
Mr DlGon-l DO not want to dsOrTsnae the
orderly proceedings OF my colleague In presenting
this matter II Is certainly very Interesting In It's
theory 70 me- but the thing about the postal savings
bank proposition which has puzzled my mind II.
under what theory Of delegated or implied powers
this matter Of postal savings banks | should be
glad II the senator will take that matter up al this
time or later on 10 hls address.
Mr. Carter-I shall be glad al this time 10 briefly
state that in my opinion Congress has ample
power under the general welfare clause Of the Con
sututlon 10 devote any Government property or
machinery II may have In its possession or under
lts control 10 such legitimate Use by the people as
10 the jud dGment Of Congress may seem proper.
Mr.. Aldrch-ThAt Is rather broad statement
Mr.. CGrter-Mr President, l think the proposition
as made viii stand the test, even In the broad Ian
TuaEe In which put H.
The general welfare phrase had been
mentioned at the outset by MIR. Carter as
his chief reliance Mr.. Lodge interpOsed to
say that he thought Mr.. Carter quite cor
rect. He quoted from the mastery argu-
ment 10y the Supreme Court in the Bank
case through Marshalls pen a Wharton,
sls) this sentence, interpreting the eigh-
teenth clause OF the eighth section Of the
first article Of the Constitution, which when
illustrated by numerals is very impressive;
let ul the end be legitimate. let It ~ be Vllniu
the scope Of the Constitution and all means which
are (9 appropriate which are IA plainly adapted
10 that end, which are (N not prohibited but Ol
consist with the letter and spirit OF the Constitution
are constitutional,
Mr. Lodge did not explain that the
general welfare" phrase is only twice used
in the Constitution, once In the preamble
which does not confer any power on Con-
gress, and once in the taxing clause, which
does give a power TO tax but only for
three special ends one OF which is to pro-
vide for the general welfare Of the Govern
ment Of the United States. In the Bank
case, from which he quoted, the Supreme
Court thus interprets that clause by insert
ing the words "in order before TO pay.
Mr.. Lodge can but be Influenced by Story's
Interpretation OF that general welfare
phrase, II not by Jeherson's In his opinion
given to Washington February IS, 1881
on the Bank case. Those potential inter.
pretations leave a small basis In the
general welfare phrase for postal savings
repositories. A larger basis must be found
Mr.. Hepburn, Republican from Idaho
made a penetrating criticism when he
said:
! The bill Ia carefully drawn and contains many
| points comprehensive In themselves but they Al
seem TO me TO lose sight OF the difference betweer
| the relation OF a constitutional government sucl
as Is ours to the people and the relation that exist
between a monarchy or other character OF govern
meht to It's people.
1t had already been said that the half
million Of dollars annually given by Con-
gress to the Attorney General for the de-
lection and punishment Of offences by in
terstate railways, the million Of dollars
more or less, annually expended by the
Interstate Commerce Commission for 9
! air,iIar nurnoaa and ita nower 10 Semnloy