Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-03-05
ADOPTED BY SENATE
Smoot Amendment to Savings
Bank Bill Approved.
CUMMiNS PLAN REJECTED
Measure in Present Form Has
President Taft's Endorsement.
AFFIRMATIVE VOTE DECISIVE
Bill Permits Deposits With Ma
tional, State and Savings
Banks and Trust Companies.
CUMMfNS PLAN REJECTED
AFFIRMATIVE VOTE DECISIVE


Senate on the postal savings bank per-
ceptiby frightened today when, in the
first hour of the session. the Cummins
amendment. which has been the subject
Of prolonged discussion, was disposed of
and, the Smoot amendment was adopted.
Action on these two amendments was pro-
posed to cover the main interest in the re-
naming sections of the bill, and senator's
were hopeful of getting a vote on the
measure before adjournment today.
The Cummins amendment was over
whelmingly defeated, a number of demo-
Gratis joining with the republicans to snow
the amendment under by more than two
to one. The adoption of the Smoot amend
ment makes the bill constitutional, ac-
cording to the opinion of President Taft
and the republican leaders in the Senate.
1t will enable the investment of the posal
deposits in government securities as well
as allowing them to be deposited in the
localities where collected.
Consideration Of the bill was proceeding
rapidly during the early afternoon until
it was held up by Mr. Hepburn, who
opposed the proposition to include savings
banks and trust companies doing bank
Ing business among the institutions in
which the postal savings funds can be de-
posted. Mr.. Hepburn proceeded to
long argument on the advisabiliIy OF this
course.
Senator Gallingers amendment. includ-
ing savings banks and trust companies
doing banking business among the de-
postories for postal funds, was adopted
Had Situation in Control.
AS soon as the Senate convened today
1t was apparent that the administration
forces on the postal savings bank bill
had the situation well in hand.
Without preliminaries of any character
the roll was called Immediately upon the
Cummins amendment to the Smoot
amendment. and it was defeated by q
vote of 10 to 40. This amendment would
have confined to times Of war the in
securities. and it was charged by Senator
Carter and other supporters of the ad-
ministration bill that its adoption would
have defeated the measure.
Nearly all Of the eighteen senators who
voted for the Cummins amendment come
from middle western states. They were
Beveridge, Borah. Brown. Burkett, Clapp.
Crawford. Cummins. Dixon, Dolliver.
publicans: and Chamberlain, Clarke.
(Ark), Owen, Shively. Stone and Talia-
ferro, democrats.
The Smoot amendment. which was next
in order, would permit the investment of
postal funds in government securities in
time of war and other exigencies. at the
discretion Of the President whenever the
government credit was involved.
Borah Amendment Adopted.
"As soon as the defeat of the Cummins
amendment was announced. Senator Be-
rah offered another amendment to the
Smoot amendment. making Such invest
ments apply only to bonds which bear at
least 2A per cent interest. Mr.. Smoot
suggested that this should read yield
ing" at least 2A per cent. Mr.. Carter
was willing to accept this suggestion. but
Mr.. Borah would not and a vote was had
on his amendment.
It was carried by vote of 40 to IL.
This will make it impossible to use the
postal funds to buy the government per
cent securities. of which there are $780,
600. 600 in existence.
The intense interest that was evidenced
during the voting which resulted in the
defeat of the Cummins amendment and
the adoption of the BOrah provision SUBJ
known. 1t was we'll understood that the
Smoot amendment, with the BOrah pro-
viso added, would be carried, and that
the bill would be passed was conceded on
The usual food of speeches in explana-
ton of their votes was begun by senators,
and several took this opportunity to be
heard before the vote was taken on the
Smoot provision.
Smoot Provision a Compromise.
AS amended the Smoot provision is a
compr omise of the opposing views Of SEN
ators who believed that some means of
permitting the investment of postal funds
in government bonds was necessary to
make the bill constitutional, but it does
not satisfy entirely those senator's who
have contended for a provision to keep
the postal deposits in communities where
collected. The provision follows:
That when, in the judgment of the
President. war or any other exigency in
volving the credit Of the government so
requires the board of trustees may with
draw all or any part Of said funds from
the banks and invest the same in bonds
or other securities of the United States.
Provided further, That no part of said