Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-08-31
POSTAL SAVINGS BANK CUES.
TON LIKELY TO BE BURN.
ING ONE.
CONGRESS MAY BE FORCED +
TO DECISIVE ACTION
Understood President Will Advocate
Legislation Aldrich and Cannon
Likely to. Oppose Consideration I'm
til Commission Reports-one Way
to Retire Bonds.
Especial Corresnondence.I

Especial Cores pondence.I
Washington, Aug. S1.-All signs indi-
cate that the postal savings bank ques-
ton will be one of the live problems
before congress at the next session
1t is expected that President Taft
will advocate postal savings bank legis-
lat1on. 1t is generally understood here
and at the summer capital that he will
do so. He believes in the postal saw
lngs bank system. in the first place,
and the party platform would require
him to advocate postal savings banks.
in the second place.
on the other hand, there will be
powerful influences working in the d.
rection Of postponing postal savings
bank legislation.
Aldrich and Cannon Unfriendly.
senator Aldrich, chairman of the
nnance committee, wants such legisla-
ton deferred until the monetary COM
mission has made it's report. This is
looked on by many of the friends of
postal savings bank as meaning that
Senator Aldrich is opposed to postal
savings banks and is aware that If the
propositions advanced by the monetary
commission go thru, there will be GER
tain reasons not now apparent to adj
vance against postal savings bank
legislation. Speaker Cannon is un-
friendly to the postal savings banks
system. 1t is pretty generally believed
he has stacked the house committee on
postoffices and postroads against postal
savings bank legislation. AT any rate,
he has put at the head OF the commit
tee Representative Weeks of Massa-
chusetts, who is a banker and who
has already Indicated that he thinks
postal savings bank legislation ought to
walt on the report Of the monetary
commission Mr.. Weeks has been ac-
cused of being unfriendly to the idea of
postal savings banks but he resents
this. He does not deny that he wants
to defer action for the enactment of a
postal savings banks law.
Hard Shedding Ahead
1t Is clear from this situation that the
postal savings bank bill is going to have
hard shedding in both houses Of con-
gress. President Taft may recommend
1t but, judging by the usual course of
things as to measures which the lead.
ers do not want passed, excuses will be
found for delays and postponements.
President Taft, however. has injected
into the situation an entirely new ques-
ton. At least, it ds one that If not new
to those who hace been giving most
careful study to the subject, is new to
II, Il, -
ment Of the money deposited by the
public in the postal savings banks for
the purpose of retiring the existing 2
per cent bonds. Inasmuch as there are
about s700,oO0,000 of those 2 per cent
bonds, the retirement of any consider
able part Of them, when proposed by
the administration, becomes a matter
of large financial moment.
Could Pay OFF Bonds.
1t is the belief of those who have
given the subject of postal savings
banks much thought that several hun
dred millions of dollars could be de-
posted in the postal savings banks If
they were once established This
amount applied to retirement of the
per cent bonds would pay Off about
half of them. 1t is hardly to be rx-
pected that for a good many years at
least there would be enough money de-
posted in the postal savings banks to
equal the entire amount of the per
cent bonds. 1t is true, however, that
profound students of the financial con-
diticns in this country-some of the
ablest of the treasury experts for in
stance-believe that enormous sums Of
money, that are now in hiding or sent
to Europe for deposit would find their
way into the postal savings banks.
Banks Would Oppose Plan.
Thus far, the plan of using the de-
posts in the postal savings banks to
retire the per cents is so new and in
definite that 1t can not be told definite
ly what the effect of 1T will be on con-
gress when 1t meets and takes up the
postal savings bank bill. 1t is almost
certain that it will greatly complicate
the discussion and consideration of the
postal savings legislation. The 2 per
cents are now at slightly above par.
If they are retired the banks that have
them would lose a great deal of money
on them, having bought them at fig.
ures considerably higher that they are
now quoted at. It is estimated the
DdHho WOulu lOSC uPWdIu VI
900 on them If they parted with them
at present prices. Therefore it is
likely there will be opposition from
banks to the idea of using the postal
savings deposits to retire the 2 per
cents
Then, again, 1t is likely that good
many members of congress will argue
it Is not just to the small depositors
to have the government accept their
deposits, give them no further secur-
ity than the general credit Of the gov
eminent, and use the poor mans
money to retire bonds held by the
banks. Treasury experts say this idea
has no merit, for the reason the credit
Of the government Is as good in the
form Of an obligation to pay back what
a citizen deposits as 1t is to pay bond.
But it is to be expected this phase of
the question will be raised.
Aldrich May Grasp Opportunity.
Still another and a most important
phase of the question relates to wheth-
er, in view of the plan to use the de-
posits to retire the 2 per cents, SEN
ator Aldrich and some OF those who are
not friendly to the postal savings
bank system will not be won over to Il.
Senator Aldrich wants central bank
OF issue which will issue currency to
be based on the general credit Of the
NJ n<,k L.