The Washington herald., 1910-06-23
POSTAL SAYINGS
BILL Is PASSED
Continued from Page one.

two Of the second class. and so on down
through the several classes.
Under the new law, anybody over ten
years Of age will be able TO open an
account at one OF the postal banks No
deposit OF less than 81 will be received.
although the postmaster is authorized to
sell special 10-cent stamps, which later
may be turned in, after ten have been
collected, az a credit of 81 on the &C.
positor's account. No individual may de-
post moro than 800 in any calendar
month, and no account shall exceed $500.
The government will pay per cent IN
terest on deposits.
The system is designed to draw out
the money which is now boarded and TO
encourage saving among the poor. It has
been the contention OF the President and
other advocates OF the bill that the most
of the postal savings bank deposits will
consist OF money that at present never
reaches the banks On this ground they
have argued It would not interfere with
the present banking business OF the
country. but would. on the other hand,
draw out millions of dollars which may
be used in great crises
Both State and national banks, under
the new law, are named as repositories
OF the postal savings funds These banks
are required 10 put up public securities
State, county, and municipal bonds-as
security for the deposits.
Funds in Securities.
One of the most interesting features Of
the legislation relates to the authorize
ption to invest the postal savings bank
funds in government securities. The
government will be able to take up $780,
0o0.000 or more Panama bonds that have
been authorized but not issued. These
was generally conceded they would have
TO pay an interest rate Of at least IL
| per cent.
The attempt to float them would have
resulted IN sending the millions Of gov
eminent per cent bonds. now held by
national banks, probably under par. For
this reason the government has refrained
! from issuing these bonds. and has been
somewhat embarrassed by the payments
that IL has had to make for the Panama
| Canal construction out OF its working
| balance.
Under the new law the government will
be able 10 invest these - per cent
bonds and reimburse the Treasury for
| its Panama expenditures without disturb
/ ing the per cent bonds outstanding II
| Is said also that the government will be
/ able to refund the $50, 000, 900 Of govern
ment 3s now outstanding and TO re-
| place them with the 2 ID per cent bonds,
| thus saving the ID of / per cent inter
| est.
Insurgents Line Up.
In the final vote by the Senate the
/ following insurgent Republicans voted
against the BILL Bristow Of Kansas, Gem
Minis of Iowa. and La Toilette OF Wis
/ consin-
Senator Dolllver, Of Iowa, was paired in
/ opposition to the bill. Senator Bever-
/ idge, OF Indiana. voted for the bill Only
/ one Democrat, Chamberlain, OF Dragon
/ voted for the measure.
/ Senator Bristow offered a number OF
/ amendments, but they were promptly
voted down. Speeches we're made In OPP
| position to the bin by Senators Bristow,
! Simmons. Hughes. Newlands. and Gore
/ Senator Hughes OF Colorado, objected
| strenuously TO the reports that had been
published that the President had pre-
vented a threatened filibuster on the bill
! Senator Hughes objected chiefly TO the
statement that the President was hold
/ ing the unsigned river and harbor bill
over Congress- head in this matter
| Senator Gore, OF oklahoma, recalled
/ that the Federal Constitution provides
a method for the President TO eommuni-
cate with Congress. He recalled the &C
/ ton taken by the British Parliament in
/ resenting an effort by George III 90 IN
( fiuence legislation. Senator Gore had
/ the resolution adopted by the British
! Parliament sent 10 the clerks desk and
read 10 the Senate.