Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1909-03-04
POSTOFFICE S. WINS BANKS
Many Persons In md Out of Congress
Object 10 PnternnIistic Feature
What Is Proposed.

The campaign for tho establishment
Of postal savings banks, which has been
carried on SO aggressively for nearly
two years by some OF the officials Of tho
Roosevelt administration, Ia coming in
contact with growing sentiment against
centrali2ng so many governmental sc-
tivites here at the national capital. In
the estimation OF many public men the
opposition to the savings bank plan.
based on the unwisdom OF encouraging
the Capitalization Idea. Is fundamental.
! An examination Of the substitute sav-
| inea bank bill just reported IN tho Sen
ntc by Senator Carter OF Montana, con-
Ninces many congressman that their
| constituents. when they fully understand
| what Is proposed by the legislation. will
he against It. II the Carter bill should
| become law there would be Establish
| ed here at the capital q. board of trus-
tees composed Of tho secretary OF treus-
| TRY. the postmaster general, the attor-
| roy general and two members appointed
ty tho President. who would have COM
| ploto control of the postal savings bank
| system. Tho two members appointed by
| the President would receive salary Of
| 10000 each.
"All regulations for the receipt. trans
mission, custody. investment and repay
| ment Of money deposited at postal saw
| inSs depositores' would DO prescribed
| by this hoard Of trustees. Under the
| lsv every postofice in the United Staes
which Is authorized to Issue money or
| GERS would become q savings bank de-
pository 20 receive deposits from the
public Opponents OF the proposed legis-
lation point out that the effect OF this
system would be TO encourage the public
in every city, town and ha inlet to make
the board of trustees here at Washing
ton It's banker in the estima ton OF men
who are skeptical about the wisdom Of
such legislation the Inevitable effect
would be to drain every community OF
,ts surplus money which would find its
way into the pockets OF the speculating
public
at Is a species OF paternalism which
takes In the countries of Europe" said
one member OF the House. but doubt
II we want any of It here. Cnouestion-
ahlv there are some good arguments in
favor OF postal savings banks they
would encourage saving. but do we want
to Introduce such paternalistic sys-
ten, in the United States? DO We want
munity to carry its surplus money to
the local postofice and turn it over to
Uncle Sam to be sent-where?"
The proposed law provides that every
deposltor shall forward his deposit pass.
hook to the postmaster general at Wash
ington once year. or within 80 days
after the anniversary OF the first de-
post made, for examination and entry
tlNnp
provision is that every postmaster shall
notify the postmaster general OF every
deposit made. There are. perhaps. wise
regulations. say men who oppose tho
plan. but they feel that there is no call
| for tho building up of such an Intricate
government machine to handle the sur
plus money Of the people, when there
/ are banks in every community IN the
country. The substitute bill contains
some provisions designed To meet the
! objections of senator's and representa-
,iyes as to the banks that were to be
recognized in depositing the money af-
ter 1t has reached the postoffice dcpos-
tory Under the original bill only ma
tonal banks could handle the money.
Tho section in the substitute bill
reads:
Postal savings funds received under
the provisions Of this act and the regu-
lations prescribed hereunder may be de-
posited In any solvent bank or banks in
the neighborhood in which the funds
are received at a rate OF interest not
less than two and one-fourth per cent.
ger annum, the board OF trustees ono
Wa shngton board) taking from such
hank or banks such security for depos-
is so made as they deem necessary TO
Insure the safety of the same 1t vii!
he noticed that the provision for putting
tho money into local banks IS not I'm
| rerative: the board Of trustees sitting
here at Washington would say whether
| one OF tho banks at Plaintield should
have the use Of the money deposited in
the Piainaeld postotIlce. Some members
Of Congress are In doubt as to whether
| local banks would care to pay two and
| one fourth per cent. for the OF the
| money IN addition to all the trouble three
| would be in the communicating with
Washington, and tho furnishing of Sc
curity for the safe return Of the fund
This same section OF the new bill pro-
vides that "such funds be deposited with
the treasurer OF the United States. who
shall bo the treasurer OF said board tot
tr,stees) and may be withdrawn from
the deposit upon their order for pay
ment to depositors: or for investment
| ,hrst) in bonds or other securities OF the
United States. or (second) in bonds or
ether securities IN which investment OF
the funds OF savings banks is authorized
by the State in which the deposits were
| received"
Opponents of the proposed legislation
declare that the bill as changed does
rot meet the objection that, in practice.
the money Of the people. II put into
these government repositories at the
postofflces, will be sent out of tho COM
munlty which contributed It, and will,
in the end. be used BY the spectators In
the East. For instance It is pointed out
there Is no provision preventing local
bank which received the deposits from a
particular postof'ice sending tho money
10 larger city for speculative pur-
POSES. and no obstacle in the way OF
the bank OF the larger city sending the
money on to New York for the use OF
Wall Street. Many persons who have
studied the proposed legislation are quite
confident that In times Of prosperity the
postal savings bank would be a fine thing
foi the speculative banks OF the East;
end it might be n good thing for them
In time Of adversely.
Apparently there Is no great popular
dc mand for such repositories. GOOD
many communities out West which have
taken the palms to look into the sub
iect aro petitioninR Congress not to pass