Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-03-04
ROOT MAKES PLEA
Urges the Senate to Save
Credit of Nation
PERIL IN POSTAL BANKS
Declares Measure as Amended
Means National Ruin,
CRASH WHEN PANIC COMES
United States Government IsseiS
Would Go to Wall, Asserts
the New York Senator.
CRASH WHEN PANIC COMES

dramatic scene was witnessed In the
Senate today when Senator Root Of New
York made an tmpassioned appeal TO SEN
ators to disregard all questions OF admin
istration or Observation-Disclosures policy, oc
republicanism or democracy, and 10 stand
by the credit OF the United States govern
ment, which he declared to be rnenaced
by the amendment to the postal savings
oanK Dill put on by democratic and IN.
surgent votes yesterday afternoon.
1t was evident when the Senate a.
sembled at Lao. after the recess Of hast
evening. that this was to be q neld day n
that august legislative body. The large
attendance of senators and crowded gal
le11es bore witness to expected develop.
ments The apparent victory OF the COM
bined insurgent republican and demo-
cratic vote over the administration sup
porters yesterday afternoon gave promise
or further amendment of the bill today
In way which would be Objectionable
TO the administration men. and might re-
suit In the defeat OF the measure
Could Not Support Bill.
Indeed. in closing his remarks Senator
Root intimated that In obligation to his
oath and sincerity in his belief that the
bill az now amended would be unconstf-
tutional. he would not give It ffs assent.
In concluding his remarks Senator Root.
who had spoken with great earnestneE
throughout, and at times with such feel
whisper. advanced from his seat to thA
space In front OF the Vice PresttentH
rostrum and addressing himself to the
Vice President and senator's, made hts
final appeal.
'sATr. President and senator's" he saItA
there rests upon US the high duty to
safeguard the credit OF the United States
and on my oath / could not consent Il,
tnis measure. I beg of You not to per-
mlt any consideration to lead us away
from the scrupulOus regard for the credfa
OF our country.
IF this bill passes in Its present form
ana there should come panic such ae
we witnessed before, it would not be q
few bankers. brokers and merchants who
would go to the wall, but It would be
the United States government that would
go TO the wall. and our entire industrial
ana nnanciai fabric would be destroyed"
Taunted by Senator Borah.
Senator Root was brought INTO The d..
bate by a taunt from Senator Borah az
Idaho. who declared that he would have
onstrated why the amendment proposexi
by Senator Root for investments Of postal
savings funds in United States securities
should be adopted.
Senator Root immediately took fhs
floor and spoke extemporaneously and
without notes OF any kind. He started
very slowly and senator's crowded over
from the opposite side OF the chamber
filling all OF the seats near him The in.
surgent senators. among them Cummina.
La Toilette and others, took frequent
notes as he proceeded.
The New York senator said that mis-
idea of q savings bank was an inst.
tuition for the investment Of savings, and
funds of the poor, too small in amount
for individual investment, aid placed
them in the hands Of wise trustees to
be invested. Such was his idea OF
bank. to encourage thrift among tho
people by giving them confidence in the
Safeguarding Of their savings. Hii
amendment was designed to carry out
the men of small means Of the country
to have an interest in the government
by investing In government securities.
Previous issues of bonds have always
been taken by the big bankers and the
brokers. he said. His amendment would
enable the workingnan to put some od
his savings In government bonds.
Guarantee Of Bank Deposits.
"I believe that to be the KIND Of postal
savings bank contemplated by the ma
tional convention Of my party" said
Senator Root, looking squarely into the
faces Of the insurgent republicans, .tand
to be the kind that the President recon-
mended in his message to Congress on
the subject" Senator Root went on to
say that as the bill stands Il proposes q
widely different conception Of a postal
savings bank. a conception which he
considered neither wise nor constftu>
tional.
.aThe whole scheme and purpose oe
that conception is TO provide for the de-
posit of the postal savings funds IN
banks. there to be retained until de-
manded by the depositor. the United
States guaranteeing the deposit" At this
point Senator Root dilated upon the i'm
portance Of considering the constitution
ality Of the bill as amended
II cannot take my seat he said
without recording my protest against
treating these grave constitutional ques-
tions lightly and making their oonsiderA-
ton the occasion of jests and sneers.
would not be counted among those who
think the Constitution of the United
States is an outworn document, to bO
neglected at will. It is the ensbodimenx
of great and fundamental rules OF right
and wrong In our written Constitution
that has enabled this country TO main
Cummins Amendment Worthless.
Il hope the time will never come when
the Senate viii not listen with respect
to discussions of our constitutional
powers. We ought not to act out OF
sense OF expediency, leaving it to the
courts to undo our work if it should be
wrong Senator Root declared that the
bill would not be constitutional unless
embodied some such amendment as he
has proposed. He declared the amend
ment Of Senator Cummins TO be worth.
less.
The proposition in the bin as it
stands" said Senator Root, 'fs to make
the government Of the United States
liable for Ave hundred millions of deposits.
The only resources to meet this liability
are to be found In the funds scattered
among 1900 banks. the most of them
not subject to government control"
Senator Root said that these dive hun
dred millions are payable upon demand.
and if all should be demanded at once
the government would have nowhere to
turn except to the 2. 600 banks where tho
money had been deposited
Senator Cummins asked him where the
government would turn If the moneys
were invested In government bonds. Sem
ator Root postponed answer the query
=