Omaha daily bee., 1910-03-06
n - ~ - "A IL
Measure Creating Savings Banks Goes
Through Upper House by Vote
of 90 to %.
CUMMINS AMENDMENT LOST
Clause Designed to Limit Government
Use of Funds Defeated.
SM00T AMENDMENT ADOPTED
1t is Intended to Keep Funds in
Localities Where Deposited.
PROVISIONS OF THE MEASURE
Deposits Made I'm Any Money Order
office win Draw Interest nt Rate
of Two Per Cent-Funds to De
Deposited I'm Local Banks.
DOT AMENDMENT ADOPTED
t is Intended to Keep Funds in
Localities Where Deposited.
PROVISIONS OF THE MEASURE

Deposited I'm Local Banks.
! WASHINGTON, March 5-Dvlding prac-
tically upon party lines, the senate. at the
close OF the third session Of the legislative
day of March 3, today passed the admins
tration postal savings bank bill,
OF the seventy-two votes cast, fifty were
In favor of the bill and twenty-five against
All the negative votes were cast by demo-
Gratis, even Mr.. MoEnery, who had voted
with the republicans throughout the oon-
slderation of the BILL in the end joining
his own party. Senator Chamberlain OF
Oregon was the only democrat who stood
with the republicans in favor Of the bill
As it goes to the house, the bill author
ICES the various money order postofflces to
accept sums of 81 or more from depositors
and TO deposit these sums in the local
banks, where the money is to remain un-
less withdrawn by the president in case Of
war or other exigency. In case of this
withdrawal the funds are to be invested In
government securities, but with the pro-
viso that such securities shall not draw
less than "a per cent interest. The control
OF the funds Is vested In a board Of trus-
tees composed of the postmaster general
the secretary OF the treasury and the at
torney general. The aggregate balance al
lowed to any deposltor is $500, and no per-
son is permitted to deposit more than 500
In any one month The government is re-
quired to pay per cent Interest and must
exact not less than 2h per cent from the
banks, the extra quarter of per cent be-
ing required for the payment Of expenses
and losses, 1t is calculated that such a
law would bring much money out OF hid
ing and result in fund ranging all the
way from 900 to $1,000, 100000.
Cummins Amendment Defeated.
beginning at i145 o'clock the senate's
session continued until 4:5O p. m and
practically all of the time was devoted
to the consideration of amendments.
Almost Immediately after It began the
first vote was taken This was on the
cummins' amendment to the Smoot pro-
vision. upon which yesterdays debate
waged so fiercely.
The Smoot amendment looked TO thu
authorization of the withdrawal from the
local banks of the postal funds in case
Of war or other exigency and Mr.. Cum
minis sought to modify It by making II
apply to war as the only exigency Justify
ing Withdrawals The Cummlns provision
went down under a vote of 40 nays as
against IS ayes, the affirmative vote be-
ing cast by the so-called Insurgents"
republicans and half a dozen democrats,
with the singl exception of Senator Nc
Cumber a stalwart republican.
Later in the day and after considerable
debate the Smoot amendment was adopted
after it had been amended by the insertion
of an amendment introduced by Senator
Borah, directing that the funds with
drawn should not be invested in govern
ment securities carrying less than 2k
per cent interest. the rate required from
the banks
Text of smOOt Amendment.
AS adopted, the amendment in the shape
of a provso reads:
when, in the judgment OF the president,
war qT any other exlgency involving the
credit Of the government so requires, the
board Of trustees may withdraw all or any
part Of said funds from the banks and
invest the same in bonds or other securi-
ties 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"
Two other important amendments were
agreed to today One Of these was sug-
gested by Senator Bailey and would per-
init the withdrawal OF postal funds de-
posits by the original depositor upon de-
mand" and the other by Senator GallinRaEs
specifically including savings banks GaA
trust companies doing banking business,
among the banking institutions permitted
to accept the deposits of postal funds.
Debate on BOrah PrOvisO.
The 'insurgent' republicans were much
elated over the acceptance of the Borah
modification. They contend that It will
save the effect Of reducing to a minimum
the government securities in which the
postal funds may be invested and prvent
the national banks from using the funds to
relieve themselves Of a class Of securities
which are not popular with them. On the
other hand, It was contended, especially by
Senator Bacon, that the Borah provision
would never be accepted by the house, and.
therefore, will not be a portion OF II when
tho bill becomes a law.
Mr. Carter, In charge OF the bill, made
no objection to the Borah amendment. He
simply remarked that It was fair to require
the government to pay the same interest
required Of the bank and that there was no
reason for opposing 1t. The provision was
agreed TO- 40 TO II. The republicans voting
against It were Messrs Brandegee. BuIke-
ey, Burnham, Burton, Kean and Wetmore:
Money Paynter, Rayner and Smith OF
south Carolina.
The opposing republicans made no expla-
nation OF their attitude. but Mr.. Money.
'peaking for the democrats based his oppo-
iltion upon the theory that an amendment
constitutional in Itself. could not render
valid bill which in itself was In contra
'ention OF the constitution.
Amendments Voted no..
Several amendments were voted down, the
most important being one offered by Mr..
owen Of Oklahoma, which was Intended as
substitute for the whole bin and which
provided for the establishment OF a fund
% guarantee national bank deposits along
he lines Of the state bank guarantee plan
Il Oklahoma.
Mr Owen spoke in support OF his pro
'ision' again holding up the Oklahoma plan
IS a model Of banking legislation.
The shsrPest discussion Of the day arose