The Washington herald., 1910-03-04
POSTAL BANK BILL
WORRIES LEADERS
Continued from Page One.


the amendment was yelled He declared
that no nation in the entire history of
the world had ever bought bonds in time
Of war
II was his contention that all countries
become vendors instead Of purchasers Of
bonds in periods OF wars. In reply, Sen
stor Smoot said that his amendment an
tioipated the issuance Of bonds in time
Of war, and he made the point that the
investment OF postal funds in govern
ment bonds at high rates OF interest
would be in the interest OF the dep0sitor.
A substitute amendment was offered by
Senator Cummins, proposing 10 limit the
power Of the President to a withdrawal
OF postal funds and their investment IN
government securities TO time OF actual
warfare. The amendment would take
away from the President the broad dis
erection given TO him under the Smoot
compromise amendment 10 invest postal
savings in government bonds whenever
in his opinion the credit Of the country
was in danger.
The first Cummins amendment, which
was adopted by vote of IS to 81. pro-
vided for the striking from the bill Of the
provision for an adequate reserve
against losses and the enlargement of the
fund to be created from interest on de-
posts. to include not only the pay Of
depositors. the expenses, and other
charges OF the system az provided in
the bill. but also losses" generally. The
Senator from Iowa contended that no
Senator had explained the meaning Of the
words adequate reserve" He said that
he. for one. wanted the bill to place il
beyond the power OF the board OF trustees
to fix a rate OF interest that would COM
pei the withdrawal of deposits from 10
cal banks.
The Republicans who voted with the
Democrats in support of the Cummins
amendment were Beveridge. Brown, Bur
kett. CIapp, Crawford, Doliiver. McCum-
Der. Borah, Burrows, Cummins, Dixon.
Gamble, Jones. La Toilette. Sutherland.
and Warner.
Platform Law Demanded.
Senator Dolliver. in his vigorous speech
.assailing the bill before the Senate, de-
clared he was in favor of such law as
was advocated by the Republican national
convention. The convention. in his opin-
ion. did not commit itself to such a law
as is proposed in the bill before the
Senate.
Senator Doliiver expressed pity for the
poor bankers who had taken the $780,
100000 of . per cent bonds issued by the
government. II has been President Taft's
contention that these postal savings
bank funds ought TO be used to take up
the bonds which have been forced upon
the bankers by the government.
1T was not very long ago." said Sen
ator DollIver, ''that the President Of the
United States. referring to the unhappy
situation of these bankers, left with $780,
0O0, 600 Of 3 per cent bonds on their hands.
said: 1t was just little bunco game
which the government played, and it is
necessary that in any legislation that
comes along we should take care Of that
issue of per cent bonds
"The question is one that will doubt
less invoke a great deal Of discussion"
We'll" exclaimed Senator Deliver, II
should think II would II is going TO in
volve not only a good deal of discussion
in this chamber and in the House OF Rep
resentatives. but il Is going 20 excite
very large interest among that portion Of
our people who have left sufficient in
dependence OF mind and thought 20 care
for what is going on in the Congress of
the United States"
Senator Dolliver said that these bonds