The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-06-23
POSTAL BANK BILL PASSED.
SENATE ACCEPTS HOUSE BILL
NJ a VOTE o. - TO -.

TOiFd Ma legislative Achievement II
the THft ADMINISTRATION TNe Trus.
tees % Decide what Peat Oaices snail
BE- AushsgtEed - Receive Deposits.
WARRINGTON. June y. President Taft'I
postal aaVinRs bank TN passed. the
senate by q vUte Of ~ to IS a. O'Clock
this AFTERNOON. Il will no slgnei by The
Prasident Tomorrow and will 90 into
elect - days latsr. This bill h the
third BIG legislative achievement Of the
Taft Administrator in this session Of
COnEress. the railroad bin and the state
hood bill already being upon tho statute
boOlu.
TO-iay'a action BY the Senate slso
maThed the elimination Of Efforts that
have been out forth more or leas regu-
larry for thirty years for the establish
ment q ths banking system. Post
masters-Oeneral have come and gone
IN the last quarter Of a century. hu,
most OF them nave recommended some
sort Of . postal savings bank system.
Many bills have been introduced In Con-
sTesa, but the subieCt never made much
headway until President Taft threw the
strength Of HE Administration behind
u n the present session.
The adoption Of the system has In fac.
hnally been brought about in tho face
OF the indiherencs Of a large part Of the
Republican organization. Il u the child
Of circumstances. The Republican ma
tIonal platform adopted the postal savings
oaDk plank ~ an ofs9t to the Bryan
Government guarantee proposition. With
the Republican party committed 10 the
system. President TAFT. following his
own belief in il efficiency. has insisted
against considerable odds that the party
pledge bs kept.
Under the terms Of the bin lust passed
h Will remain with the trustees % the
postal savings hank deT,oslts-tha Post
master-0eneral. the Attorney General
and the Secretary Of the Treasury %
dectTe Whar Dust Otices shall be author
iged 10 receive deposits II u not eH-
peCted that the system will he apphei
~ the start 10 all parts Of the country.
The main purpose Of the legislation. a.
President Taft has viewed H. - TO estab-
iiah banking facilities for poor people In
parts OF she country which Row lack
sayinRs deiositoEtes
IN speaking 1T the passage Of the bill
this evening The President acknoN Ie,iRsd
that the trustees probably woulh ~ slow
az nrst. They may In the beginning. it
vas sAid, establish postal banks In one or
Two cities OF the first class. in une or two
% the Aecnnd clAEN and 40 on down through
the several clasaes The trustees then
may STUDY the results Of the system for
lev months 10 thoae special caves he
fore attempting 20 apply Il more generally.
Under the new hS anytOuy over 10
years 81 aGe will be able TO open an ac-
count az one Of the postal ranks No
deposit q les than 81 will b. received.
aitnough the postmaster IL authorized
70 sell special 10 cent stamps which ater
may De turned IN after ten have been
collected a. credit Of 81 on the depoai-
tor . account. No individual nav depo.it
more than 500 in any calendar moatb and
no account shall exceed sD The Gov
ernment will pay per cent. interest ON
deposits.
The system h designed 10 draw out the
money which u nov boarded and 10
encouTage saving among tho poor Il
has been the contention % the President
and other advocates Of the htll that th,.
most Of the postal savinEs hank deuosits
Will consist Of money that Al ur.s.nf
never reaches the hanks On this Ground
they have argued that the system about
10 h inauglratsd Wouhi not interfere
with the present banking business OF The
country. hut would on the ollser hand
draw out many millions Of dollars which
may be used In great crises.
Both state and national ranks under
the new aw are named a. depositories
Of the postal savings funds These hanks
Are required 10 put up public securities
state. county and municipal honds-aa
security for the deposits
One Of the most interesting feature.
Of tho legislation and the one that haa
created the most opposition IN ConRrcss.
relates 20 this authorization 10 invest
the postal savings hank funds In Govern
ment securities. u = acknOWledRed thar
under the postal savings hank act tho
Government Wtll b. abe O. take IN the
Panama bonds that have heen authorized
but not issued. These bonds have nof
been issued because Il was generally
conceded that they would have TO pay
an interest," rate u az least p, per cent
To attempt 10 float them would have
resulted in sending the t7nO 000 400 II
Government peT oent. bonds now held
W AAAAAANA NAAAAH INNN1AlN uIuNF TAR.
For this reason the Governments has NJ.
Trained from issuing thess bonds and has
been somewhat ernharrassed by tho paw
ments that Il had 20 make for the Panama
Canal cunEi riction Out e it, working
1alancs Under the new law the Cow
sTnGnent will he able TO invess in thea.
- per cent. bonds and reimburse the
Treasury for is Panama expenditurrs
without disturbing the ? per cent. bonds
outstanding
Il u also said that the Government
vii be able to refund the "a. OOO 900 III
Government ~ nov outstanding and 70
Splace them with the p per cent. bonds.
his saving the One-half of per cent
II the Government ever comes
q the point Of establishing a central
lank Of iasue the postal savings hank
lnds will alao open the Way Tor the retire
nent % the 500 600 900 II per cant.
,Onds now hsld Ivy the national banks
a security for circulation.
In tho final vote by the senate on the
'ostal savings hank bill the following
nsurRent Republicans voted against ii.
'rist0w Of Kansas, Cummins Of Iowa
nd la Follette Of Wisconsin, senator
)olliver % Iowa. who was paired in
ppositiOn 10 the bill: senator BeveridRe
Z Indiana voted for the bill Only one
bsmocvAt Chamberlain Of Oregon, voted
% the measure.
ANOTHER TAFT BILL PASSED.