Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-03-06
INSURGENTS FALL IN LINE
Adoption of Borah ,Proviso Wins
Them Over to Measure.
LONG FIGHT COMES TO END
Funds Not to Be Invested In Bonds
Bearing Less Than ga Per
Cent Interest

cluding all the insurgents. and one demo-
crat Senator Chamberlain of Oregon,
voted for the measure, and twenty-five
democrats voted against 1t.
While some amendments were made to
the bill late yesterday afternoon, there
were no important changes after the
adoption of the Smoot amendment as
modified by the Borah amendment. The
change in the Snoot amendment which
allows the withdrawal Of funds from local
banks in time of war 'or other exigency
involving the credit of the United States"
by the Borah proviso that the money
shall not be invested in bonds bearing
less than 2A per cent interest, lined up
the insurgents behind the bill, and not
single one of them voted may on the
final roll call
The fight on the bill had centered about
the question whether or not it would in
sure the leaving of funds deposited in
postal banks in the localities from which
they were drawn. AS originally reported,
the bill provided for the deposit of the
postal savings funds in local banks to re-
main there until Withdrawn by the de-
positors, specifying that in case the local
banks in a neighborhood refused to re-
ceive the funds they should be deposited
in the Treasury of tie United States, and
might be used for investment in national
or approved state or municipal bonds.
Must Be Invested in q. S. Bonds.
AS the bill finally was approved by the
Senate the provision for the investment
of funds in approved bonds other than
those of the United States was stricken
out. The general provision for depositing
in local banks was modified by a proviso
and the fixing of the terms of that pro-
dow
Senate just before the passage of the bill
AS finally adopted it provides:
when in the judgment of the Presi
dent, war or any other exigency involv-
quires. the board of trustees may with
draw all or any part of said funds from
the banks and invest the same in bonds
or other Securities of the United States:
provided. that no part of said funds shall
In any event be invested in bonds or other
securities bearing interest at less than
"a per centum per annum.''
The insurgent republicans were much
elated over the acceptance of the pro-
viso known as the Borah amendment
at the end Of the clause. They con-
tend that it will have the effect of re-
ducing to minimum the government
may be invested 1t will especially pre-
vent, in their view, the national banks
from using the funds to relieve them
are % not popular T with h them '1rS those MaI are
the bonds. upon which the circulation
of the national banks is now based.
described by Senator Dolliver in his
speech several days ago. They bear
per cent interest, and thus invest
ment in them is especially barred by
the Borah amendment.
Carter Accepts Amendment.
Mr.. Carter, in charge of the bill. made
no objection to the Borah amendment.
to require the government to pay the
same interest required of the banks,
and that there was no reason for op-
posing it. sThe provision was agreed
to- 49 to II. The republicans voting
against it were Senators Brandegee,
Bulkeley, Burnham, Burton, Kean and
Wetmore, and the democrats, Senator'S
Bankhead. Money, Paynter, Rayner and
Smith of South Carolina.
The opposing republicans made no
Money. speaking for the democrats.
based his opposition upon the theory
that an amendment. constitutional in
itself, could not render valid bill
which in itself was in contravention Of
the Constitution.
Two other important amendments were
agreed to before the bill was finally
passed. One was proposed by Senator
Bailey and provided for the withdrawal
of postal funds deposits by the original
depositor upon demand. The other.
suggested by Senator Gallinger specific
ally include. savings banks and trust
companies. doing bank business. among
banking institutions permitted to accept
the deposits of postal funds.
Owens Guarantee Substitute.
Several amendments were voted down.
the most important being one offered
by Mr.. wen OF Oklahoma, which was
| intended as substitute for the whole
| lishment of a fund to guarantee national
bank deposits along the lines of the state
| bank guarantee plan Of Oklahoma. Mr
| owen spoke in support of his provision,
again holding the oklahoma plan as a
model of banking legislation.
| The sharpest discussion of the day
| arose over MIR. uallingers amendment in
| Guiding savings banks and trust COM
| panies in the specific terms of the bill.
| IL was bitterly opposed by Mr.. Hepburn,
| and in less degree by Mr.. Bailey. Mr..
| Hepburn went so far as to declare that
| If this provision should be retained the
| bill would be repudiated by the people.
| Mr.. Gallinger contended that to include
| uncertain state banks and exclude the
most stable banks of the country would
| be inconsistent.
Another amendment looking to change
| of phraseology called out a bitter as
| sault by Mr.. Hepburn. 1t provided that
no interest should be computed on frac-
| tions of dollar. 1t was adopted after
\
| The Idaho senator contended that the
banks would gain immensely by the
provision and declared that it showed
an utter disregard of the interest of
the poor people. During the debate on
the amendment Senator Page made re
ply TO recent estimate of Senator
Bailey's to the effect that $4,000 addi-
tional government employees would bo
rendered necessary by the pending
Legislation. Mr.. Page declared that 500
men could do the work
Work Would Be Distributed.
Replying. Mr.. Bailey said that the
| work would be SO distributed over
the country that it would be impossible
TO get along without a very large ex-
ira force.
| A number of democratic senator's in
cluding MesSrs. Gore. Stone and Bacon,
/ spoke In general opposition to the
measure. The three mentioned saw in
the bill the fOrerunner of a great cen-
trail bank and regarded the legislation
as unconstitutional
| Mr.. Bacon contended that the bill had
been absolutely revolutionized by the
Smoot amendment He argued that ow-
/ ing to the latitude allowed to the
iTraaSury noDarfmonf Ia p0sfal funds