Daily Kennebec journal., 1910-03-07
Postal Savings Bank Bill
Passes Senate.
Five. Auadist 0sksis liaiii
Fof ANY, One Dspusilef.


washington, March 6.--piViCili,, rTuc-
tically upon party lines the Senate at
the close of the third session of the
legislative day of March 3 Saturday
passed the administration postal saw
ingS bank bill
OF the ~ votes cast, so We're in favor
of the bill and - against. All the
negative votes We're cast by Democrats
even Mr. McEnery, who voted with
the Republicans throughout the con-
sidcration Of the bill, finally lining up
with mis- own party. Senator Cham
berlain of oregon was the only Demo-
crat who stood with the Republicans
in favor of the bill
AS it goes to the House, the bill au-
the rizes the various money order pest
Offices to accept sums of 81 or more,
trcm depusitcrs and to deposit these
sums in the local banks. where the
money is TO remain until withdrawn
by the President in case of war or 9TH
@" cNigcncy. In case of this withdraw
al the funds are to be invested in gov
ernment securities. but with the pro-
Viso that such securities shall not draw
less tnan cA Per cent. interest. The
control of the funds is vested in a
board of trustees composed Of the post
master general. the secretary of the
treasury and the attorney general.
1'he aggregate balance allowed any
deposit,r is $500 and no person is per-
mitted to deposit more than 500 in
any one month. The government is
required to pay two per cent. interest
ind must exact .ot less than pa per
cent. from the banks, the extra quarter
of enc per cent. being requi:cd for the
payment of expenses and losses.
1t is calculated that such 8. law
would bring much money out Of hiding
and result in a fund ranging all the
way from $joO,0o0,0 900 to $1,000, ,Oo1,oo0.
The session began at 1l.45 O'clock
Saturday and lasted until $50 p. NJ.
AID practically all of the time was de-
voted to the consideration of amend
ments. Almost Immediately after 1t
began the first vote was taken. This
was on the Cummns amendment. to
the SnCot provision, upon which yes
tcrday's debate waged so fiercely.
The Smoot amendment looked to the
.uthcrization of The withdrawal from
the local banks of the postal funds
in case of war or other eXigency and
Mr.. ,ummins sought to modify it by
making it apply to war as the only eX-
igency justifying Withdrawals The
,'unn,jnS provision went down under
vote of 20 nav& as against IS ayes, the
atfirrrativc vote being cast by the So
cail4l .insurgcnt" Republicans and
hnIf dozen Democrats, with the single
cyc.ntiou of Senator McCunbtr, a
stalVar.
Later in the day and after consider
.,hlc debate the Smoot amendment was
aaontcd after il had been modified by
the insertion OF an amendment, lnlro-
duced by Senator Burah. directing thao
the funds withdrawn should not DC
invested in government securities car
ryjus. les than > IL per cent, the rate
required from the banks.
Two other important amendments
were agreed to Saturday. One of these
was suggested by Senator Bailcy ana
would permit the withdrawal of postal
funds deposits by the original depositor
"upon demand and the other by SEN
ator Gallinger, specifically including
savings banks and trust companies,
doing Il banking business. among the
banking institutions permitted to accept
the deposits of postal funds.
The "Insurgent' Republicans were
much elated over the acceptance of
that it will have the effect of reducing
to d minimum the government security
in which the postal funds may be invest
cd and prevent the national banks from
using the funds to relieve themselves of
a class of securities which are not pop
ular with them. On the other hand it
was contended, especially 10y Senator
Bacon, that the Borah provision will new
er be accepted by the House, aud, there
fore, will not be Il portion of it when
the bill becomes Il law.
Mr. Carter. in charge of the bill, made
no objection to the Borah amendment.
and it was agreed to by Il vote of 40 to
II.
Several amendments were voted down,
the most important being one offered by
tended as Il substitute for the whole
bill.
The sharpest discussion of the day
arose over Mr. Gallinger's amendment
including savings banks and trust COM
panies by the specific terms of the bill!
1t 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 were retained the bill
would be repudiated by the people.
"A number of democratic senators in
lI|I