Omaha daily bee., 1910-02-01
No Attempt is Made to Displaee Pres.
ent System.
ENCOURAGE
-
THRIFT
Much Money Now in Hiding Will be
Placed in Circulation.
IN LINE WITH PARTY PROMISE
United states Is One of Few Nations
that Does Not Provide Method
for Caring for Small
Savings.

WASHINGTON. Jan s1.--senator Carter
had no difficulty in getting permission to
proceed today with his speech IN the SEN
ate in support of the postal savings bank
bill, which he delivered in accordance with
a previous notice, but the general consent
did not extend beyond this courtesy
Mr.. Carter took the floor as soon as
the routine business was disposed of, but
before he had begun his remarks Senator
Bailey interposed to say that he assented
to the taking up of the measure only for
the purpose of speech making and that he
would not agree to the displacement OF
the regular business, which is the Alas
kan Legislative council bill.
Senator Carter explained that there
would be no effort permanently to dis
place the Alaskan bill.
The United States Is the only first-class
power in the world to deny to the people
the privileges and the blessings enjoyed
by a postal savings bank, declared Sem
ator Carter of Montana
He spoke of the promises made in the
last republican platform, we'll as in
several other party platforms, of the sup
port given to the measure by former
President Roosevelt and by President Taft
and also by number of postmaster gem
lined the present bill.
No Menace to Old Banks.
Answering numerous objections which
have been made against postal savings
banks Senator Carter asserted tnat they
would not be a menace to the present
banking system OF the country, that the
commercial banks, even IL they were suf-
ficiently numerous, could not reach the
people in the rural and sparsely Inhabited
districts whom the postal banks are de-
signed to benefit. The postal repositories,
he declared. would encourage thrift, would
bring into circulation much money now
kept in hiding and impel foreigners. who
now send much of their savings home for
deposit In savings banks in their own
countries, to place 1t In the care of this
government.
In referring to the countries which al
ready have such a system The speaker
said: "It is operated in countries of lin
tied extent and those OF broad territorial
expanse with equal facility. succass and
satisfaction"
Answering the objection that the estab-
lishment of the postal banks would he ian
unwarranted use of power" by the govern
ment, he claimed that "the bill but elab-
crates use to which the postal service
is now subjected for. as the report of the
committee will show, very large sum
of money In all the states and territories
is invested in money orders payable to
the purchaser and renewed annually at an
expense of So per $1,000 as a penalty Of
thrift"
Purpose to Encourage Thrift.
THE prime purpose of the measure" he
declared 'is to encourage thrift among
the masses of the people by furnishing
widely distributed, convenient and abso-
lutely safe repositories wherein small
sums may be placed at a low rate of
interest with the faith and credit of the
government pledged to the repayment Of
principal and interest on demand"
He held that If the commercial and
other banks were widely distributed, they
would not be patronized to any consid-
erabls extent by the class of people to
whom the postal savings depository would
, furnish the needful elements of con-
venience and absolute confidence.
AS to the charge that such a system
might be held unconstitutional, he ans
wered that THE microscope has not been
made which can disclose a difference in
principle between the money order system
and the system here proposed"
This system, he claimed. instead of be-
! ing a menace to the banks. would prove a
source OF strength to the financial struc-
ture He said that such da been the ex-
perlence wherever it had been tried.
! The bill now before the senate provides
i that the system be directed by a board
OF trustees to be composed Of the secre-
tary OF the treasury. the postmaster gem
eral and the attorney general which board
shall report to congress at the beginning
OF each regular session. Every post office
authorized to issue money orders and such
others as the postmaster general may de-
sgnate are to be postal repositories. al
| though no account OF less than one dol
lar can be opened, and no patron may
| deposit more than 500 in one calendar
month or more than $500 altogether, not
counting therein accumulated Interest. In
terest is to be at the rate of two per
cent year.