The Washington times., 1909-01-06
POSTAL BANK BILL
PET OF CUMNINS
New Senator Will Make His
First Fight for Amend
mentS.

Senator Cummins of Iowa lis going 10
make his FIRST fight and his first speech
5u the Senate I'M behalf OF amendments
to the postal savings bank bill, which
he considers absolutely necessary, If the
measure is TO pass. He is determined
10 oppose the measure unless tie
amendments are adopted and, after dis
Cussing the matter with other Senators,
Is of she opinion that they win be of
the greatest importance, because their
failure VIII cost the bill enough votes
on fual passage 10 defeat IT,
Senator Cummius wants, nrst, a pro-
vision that moneys deposited with the
pOstofEce, under The law, shall be rode
posted al once in some bank in the
same community; that IS, in the same
town, az there IS q bank, ou~'wise at
The nearest place where there is a bank.
An this, ne means 10 include not only
national, but also State banks.
The State Banks.
There are many small towns he
said, in which there are no national
banks. but which have strong and ex-
cellent State Institutions. These latter
ere very important 20 their coulmuni-
ea8; U.ey are authorized 30 do certain
hnsB OF business which are forbidden to
national hanks. They are Just as sound
and safe as national institutions In
fact, I shall present a statement show
ing the facts concerning bank failures
IN my State for period of years, prov
ing actually that the percentage of
losses in state institutions has been
less than in national banks.
of course, I propose TO use only State
institutions conducted under supervision
OF State authorities. having uDimpaired
capital, and reported in perfectly sound
The Significance of such an amend
ment i'm Iowa may be gathered from
the fact that State banks are much
more numerous there, and do more
business than national institutions.
Iowa has more banks than any other
state ia the Union a record or which IL
IS very proud. There is hardly a cross
road in the State without "A bank or
-dncy having their deposits drawn away
IA time OF financial nervousness TO the
postal banks. and thence carried over
70 the national Institutions very likely
in another community.
Government Lien.
Senator Cummins' second amendment
will propose TO eliminate from the bin
the provision which gives the Govern
menr a preferred lien on the assets of
any ud4lh Ali winch is deposited the
moneys OF the postal savings banks.
-'The Government should take its
chances with the people" he declares.
"The Gov eminent can bear its insig
ni1csnJ proportion OF losses quite as
well as can the people, and should. To
seEregaIe q very small part of the i'm
terest on these deposits, as fund 20
guarantee against loss TO the Govern
ment. would assure against loss. For
instance. IL desired. IL would be entirely
practicable 10 charge 2 per cent inter
est, and then set aside oue-haIf or
per cent, or whatever part banking eN-
peTieuCe might dictate. as q fund 90
guarantee against losses"
senator Cummlrs has had large
amount of correspondence with bankers
IA his State Gnd elsewhere on the 81
1cct of the postal bank bill He has
equipped himself for thorough discus
sion OF IT, bIE is not Set certain 10
what extent ne viii have To discuss DC
on the fugT. lie had not expected 10
take am speaking part i'm Senate bust
ness this session, but IS perfectly will
ing 10 do so If il becomes necessary
ir order 60 make his attitude clear re
gardinz this legislation, and 10 interest
Senators I'm his amendments