Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-06-02
POSTAL BANK PLANS
Republicans of House Reach
an Agreement in Caucus.
COMPROMISE ON DEPOSITS
Sixty-Five Per Cent Of Funds to Re-
main in Local Banks.
MR.. SOUTHWICK A B0LTER
New York Member Declares He Will
Fight Measure on Floor
of the House.
COMPROMISE ON DEPOSITS
MR.. SOUTHWICK A B0LTER

At caucus of the republicans of the
House of Representatives, lasting from
s O'Clock until midnight last night, the
postal savings bank bill was finally per-
fected and agreed upon. The committee
on rules is asked to report rule for the
consideration of the measure III tne
House Just before adjournment the fol-
lowing resolution, offered by Represen-
tative Tawney of Minnesota, chairman
of the House appropriations committee,
was adopted:
Resolved, That the postal savings bank
bill agreed on by this caucus be, and the
same is hereby, adopted; that the same be
reported by the committee on post Offices
and post roads, and that it is the sense
of this caucus that rule be reported
from the committee on rules for its con-
siderat ton in the House.
Representative Southwick of New YORK
was the only republican to bolt the eau
Gus. He walked out after denounclng the
bill as socia]istic, and announcing. tha'
he proposed to fight 1t on the floor OF the
House. Mr.. Southwick signed the caucus
call and had attended the previous three
caucuses.
Disposition of Deposits.
The only question remaining for the
caucus to settle last night had to dc
with section of the Gardner bill, relat-
ing to the disposition to be made of posta
savings deposits. The bill establishe:
postal savings repositories for depositine
savings at interest, with the security OF
the government for repayment.
The caucus fixed at 81 per cent the
| amount of the funds placed in the posta
savings banks that must remain on de-
post in banks in each state and territory
and 80 per cent as the proportion OF sucf
funds that the trustees may withdraw fol
investment in United States securities
The other > per cent must be held as q
permanent reserve in the United States
Treasury This disposition of the funds
which are contemplated in connection
with the proposed postal savings bank
legislation was provided for in the Da
wilson amendment, which was adopted.
Agreement a Compromise.
The original bill provided that Az pc,
cent of the funds that might be put in
the postal savings banks should be de-
posted In local banks, and the same
drawn for investment in United States
in the Treasury.
Tic CAUCUS SotSu doNH lue NTtelGHt
amendment. which extended the percent
age of deposits allowed iii the loca
banks to tie per cent, the investment,
in federal securities to .11s per cent, with
the > per cent permanent reserve. The
Nreeland amendment was first defeated
on rising vote by - to %, and again
voted down when teliers We're ordered
by 10 to 81 The Davidson amendment
was then adopted.
The adoption OF the Davidson amend
ment was by yea and nay vote, and
there we're only few scattered votes
against it, Speaker Cannon was among
those who voted, first for the Vreelant
amendment, and later for the Davidson
amendment. The Speaker, Mr.. Mann OF
Illinois, Mr.. Tawney of Minnesota, Mr.
Madison of Kansas, and Mr.. Keifer OF
Ohio, were among the numerous mem
bers who addressed the caucus.