New-York tribune., 1909-01-06
CARTER MAKES REPLY
DEFENDS POSTAL BANKS.
Says AdUerse Comments Come from
Financiers' associates.
lFron: The Tribune Bureau. ]


Washington. Jan. 5.-The symposium Of the views
Of bank commissioners. insurance commissioners.
controllers and bank examiners the proposed
postal savings banks, which made public in
The Tribune this morning. created the utmost in
terest IN Congress circles to-day. The deprecatory
trend of the views expressed exceedingly wei
come 20 those Congress leaders who are opposing
the measure. while those who advocate it main
tained that the proper sources from which to OBJ
tain favorable comment had not been approsc ched.
Senator Carter. who is in charge of the measure.
said:
The replies received by The Tribune from
banking commissioners. examiners and controllers
Of various states with reference to the postal
ings banks system might well have been expecte
The officials designated associate with bankers
chiefly. and as in all other cases opinions pub
lie sentiment any given subject gained
from associates
Of the National Grange and the various subordinate
farmers organizations. the representatives of labor
organizations and others in touch with and able
to speak for the masses. the replies would have
been Indicative Of the state Of mind existing
Throughout the country a. large Bankers not
being, 4 rule thoroughly advised of the pro-
visions and limitations Of the proposed law, form
and express their opinions adversely general
principles. because they in the system
competition without corresponding advantage and
officials holding more less intimate relations
with the bankers very naturally reflect those opin
ions In a general way. It is safe to say that not
one banker fifty who expresses an adverse Opln-
ion has read the pending bill and therefore,
being unable appreciate its points Of excellence
and helpfulness. they view the proposed system
exactly in the light they would the es-
tahshment Of a competing bank across the street
TO the promoter of the proposed opposition
bank they would naturally say that the existing
banking facilities ample. The bankers who
have carefully read the pending bill have. in many
instances. freely announced a change of opinion
with reference TO the measure, and il Is TO be
hoped that every person interested In the welfare
Of the country will take the pains to read the bill
before condep1ntng il
The farmers who feel the need Of facilities for
savings Of snail sums. and lahorers remote
from savings institutions Of any kind welcome the
proposed legislation because II will furnish oppor
tunitv for the saving of small amounts coupled
with absolute safety.
The hill provides that money received and de
posted at postof1ces shall be PLACED by the Post
master General in national banks nearest the
places Of receipt, thereby insuring the speedy re-
turn circulation of money withdrawn from banks
in time financial unrest, and also the restoration
70 active service Of very large amount of money
in the aggregate. which is constantly in hiding
because its possessors lack confidence in all ex-
listing banking institutions"
There are many objections urged against the bill
hut the most important that IL attempts TO ex-
enpt private funds within state limits from taxa
NON and attachment; that il authorizes the deposit
of funds for which thu government is responsible
. In national banks without eIactfng any security
therefor. although security Is demanded for all
government funds deposited: that II delegates
to the Postmaster General the responsibility of Sc
leCtins the banks which snail he made repositories
for funds which the government Is responsible,
although he has means Of asoertaintng the
financial status OF such banks. which are, OF
course under the supervision Of the Secretary OF
the Treasury: and, finally. that It is contrary to
the principles of good government 70 create new
finance department OF the government. which. II
the postal banks succeed at all will Involve the
care Of funds amounting upward Of 10000 on,
and "a place Il under the supervision 81 the Post
master General when there is already a Treasury
, Department TO handle the federal finances and a
Secretary Of the Treasury OF recognized ability In
that line Of work.