New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-02-12
From The Tribune Bureau J

From The Tribune Bureau
Washington. Feb. n-Senator Root mas
introduced an amendment to the poS'hi
savings bank bill which comn1ends itseii u
many Senators who have entertained SUM-
doubt regarding the constitutonahE oi
that measure. It IS entirely IN line WIN
the views of the Secretary Of the Ireasui' >
which accord with those Of the Presiue4i' do
outlined by him in his discussion OF pos'"'
savings banks at Milwaukee last SepVeiH-
her, and yet may be defeated as a iiia''e'
Of expediency. Mr.. Roots amendment pio-
vfdes that the funds Of the proposed banks
may be invested in the securities OF the
United States. and that whenever such Sc
curities are not available the FUNDS may
be deposited in the banks in the localities
in which they are collected. objection has
been made to the constitutionality OF inc
bill on the ground that the government is
not authorized to do a banking business
under the general welfare or the postal
clause of the Constitution. Senator Root
believes that his amendment would firmly
establish the constitutiOnality of the meas
ure under the clause authorizing the fed
eral government to borrow money. Every
effort has been made IN the debate to in
duce Mr.. Root to express an opinion re-
gaTding jhe constitutionaluy Of the proposed
law, but he was persstently refrained from
doing sc. and even now does not say that
he regards it in its present form rs uncon-
stitutional. He does, however, declare his
conviction that its constitutionality could
not be questioned were his amendment
adopted.
In his speech on postal savings banks
President Taft said that s7oo0oo,oGo or $500.
oH9,oo0 would be tidy pile to have around
for the government to use iegitimately in
order to carry on any financial operation
and he further referred to the 100000 600
which the government had borrowed at
per cent by getting the banks into a cor
ner." This issue of more than S700,000Go0
per cent bonds is the cause OF constant
anxiety to the Secretary of the Treasury,
and the maintaining of their market
value is one of the most difficult problems
with which Mr. MacVeagh has to deal
Under Mr.. Roots amendment these bonds
could be steadily absorbed by the postal
savings fund, and 10 this extent the way
would be cleared for a national currency
not secured by bonds, if the National
Monetary Commission can devise such
system. Were it not for the insurgent ele
ment in the Senate, there would be no
question about the adoption Of the Root
amendment, but many Of the Western
Senators, actuated apparently by local in
terests rather than by a desire for the
welfare of the entire country, bitterly
opposed 10 the proposition Of Mr.. Root, and
for that reason. and for that alone, serious
doubt is entertained regarding its adop
ton In the opinion OF some OF the leaders
OF the Senate who favor Mr.. Roots propo-
sition it would be impossible 10 enact the
postal bank bill with the amendment in
CorporaJed therein.
The Joker in the bill whereby it was
sought to honor Commander Peary, and
which was pointed out in this column on
Wednesday morning, led TO the loss of the
entire measure in the subcommittee of the
House Committee on Naval Affairs to-day.
Secretary Meyer, as soon as he discovered
that the bill as it passed the Senate would
make Peary an actual rear admiral of the
line instead of q civil engineer with the
rank and pay OF a rear admiral" called
the attention Of the House Naval Com
rnittee to the ACCESSIBILITY OF amending the
measure 10 conform TO the facts, with the
result noted There is quite general belief
that the refusal to confer on Peary the
honor proposed by the administration will
not meet with popular approval and that
when the country has had an opportunity 10
make its views known the Naval Com
1rtttee will reverse the action OF its sub
committee will make the amendment sug-
eested by Secretary Meyer, and both House
and Senate will accept the bill as amended.