The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-02-13
Legislators Will Pass the
Measure Providing for Saw
ing of Peoples Money Be-
fore Work Is Over.
DEMAND OF THE WEST
HAS BEEN ACCEPTED
AIdriCh Plan to Aid the Central
Depository Scheme One
Point on Which a Fight Is to
Be Made.

Washington, ID. c., Feb. 12-There |
no longer is any doubt that before !
congress adjourns law will be upon
the statute books authorizing savings
bank deposits in the postOffices
throughout the United States.
The senate will pass the Carter bill
in some form next week. by a MAORI
ty of eight votes, if a poll made today
is to be relied upon. The measure
then will go to the house and will be
referred to the committee on postoffi-
ces and postroads. A Republican eau
Gus of the members of the house will
be held promptly. This caucus will
recommend the passage of a postal
savings bank bill. probably differing
from that fathered by Senator Carter
of Mantana. After the action by the
house. conference committee of the
two houses will meet, and in the fin
al form drafted by that committee the
measure will be passed and presented
to the president for his approval.
This is the program of the leaders
of the two houses. They have adopt
ed it not because they favor the princi
pie of a postal savings bank, but be-
cause of party eXpediency. Concerned
about the political situation, the men
who dominate the Republican party
in congress realize that something
must be done to show a desire to com
ply with the wishes of the people.
Submit to Western Demand
The leaders know that a postal saw
inc &c Of
things upon which the public heart in
the west is set, and they understand
that a failure to enact it will be used
as an additional reason for depriving
the party of power in the next con-
gress. Under the circumstances,
therefore, they see nothing to do but
to pass bill.
Facing such situation. it is the pur-
pose of the opponents of the postal
savings bank system to make it as
harmless from their point of view as
possible. So far as Senator Aldrich,
chairman of the senate finance COM
measure finally enacted to be so
| framed that it will be helpful to the
central bank plan which he favors.
The central bank of issue scheme
proposes the emission of currency on
the basis of gold reserve, instead of
bonds. This would make it unneces-
sary for the national banks to stock
up heavily on the government bonds
for the purpose of securing their cir
culation by government securities, and
this in turn would throw on the mar
ket an enormous quantity of govern
ment bonds bearing interest at rate
of 2 per cent per annum, for which
there would be no national demand.
Root Amendment Is Opposed.
How to care for this tremendous
mass of securities has been the prob
lem in connection with the currency
reform plans which has given Senator
Aldrich a great deal of concern. He
and others have figured out that if the
deposits made in the postal savings
banks could be utilized. first, for the
purchase of government bonds, the
problem would be in a fair way of so
luton.
Senator Root of New York. acting in
accordance with the view of Senator
Aldrich. will introduce an amendment
to the Carter bill providing for the
use of deposits in the manner stated.
The Root amendment will be fought
vigorously by the senators from the
middle and northwest states. who pre-
fer the plan incorporated in the Car
ter bill, providing that the postal saw
ings funds, SO far as practicable. shall
be deposited first by the postmaster