The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-06-17

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To TnR EDVToR oP Tina sux-SS; In n.
letter ~ to-day's 8Ua Allen W, lohnstou
lntiniatos q doubt of the constitutes
ally Of ne postal aavin8a hank BIN Tbs
n a point TO which the Democrats Opposed
20 the scheme have paid mnch aitenfion
AID which most of the hepaklican sup
portefu % lha plan have ignored Al
though both houaes have nov given Their
approval 10 tho establishment % q postal
savings bank ayaeem there still remains
some doubt of the constitutional authority
for the creation OF such an institution.
The special purpose OF the postal banks
heins. nv specific ontcial declaration. the
'c0nvsniance % the people and the en-
couraReuent OF thrifl.- the matter would
seem 70 fail under the dispuied general
welfare prov sion Of AFticle L., section :.
Of the Conssliutinn. Those Who aarea With
Judge story and numerous other eminent
and aCsspssS Interpreters % sse c9s=ss.s-
tlqn Of the Tinted states see IN that section
nS'authority for the proposed system. A
Judge Story read that section Il means;
Tho Csngress shall have pouer 10 lay and eel-
ieci lanes. duties. lmposis and eacisea IN order
70 pay DE debts end 70 provide Cor ne common
defence and general Weiiare Of ne United States
The postal savings hank bul b not a bill
20 lay and collect taEea. duties, imports
and excises- for any purpose Il may or
May not BE- q provision for The general
welfare, bat ~ Judae story and many
others have read that section the power
granted BY n n q power 10 tan and not q
grant Of general and unlimited powers
under which almost anything might be done
that to any Congress a any time might
seem 10 be for tho general welfare Of the
Cgumigy
II h held by some that the power to e.
labllah post oiloee and post roads includes
thu power ID create postal savings banka
and lhat the hanking system h no more
than an extension Of the present money
order system. A post Office 10 clearly a
place Nbore letters and other articlea.
even including mooney, are received Tor
delivery o. Transmission to those 10 whom
they are addressed A Dost road 4 a route
over which such matter can he carried or
transported. Neither post once nor post
road has properly any more 10 do With
the receipt % money on deposit and tire
payment Of interest on Il than 4 has 10 do
with the purchase and sale Of butter or
tea The business Of banking Il clearly
no more . conatituiionally AutheriAad
function Of the postal service. under the
sueciic provision FOR posi- OFFICES and post
roads. than the swapping OF horses OF lack,
knives b q religions ceremOnisl
There arc a few other claims set forth.
but they are 20 petty an 70 be quite un-
worthy Of attention What apuears 10 he
the sheet anchor Of the claimants Of conaii-
tuiiOnalliy ~ the power 10 borrow money.
In eli the history Of ihc bill there b no
comment more enlightenina or more abs
than the ~peech u senator Root delivered
on The aoor Of the ssnaie on March & Ne
analysed the hlll - II then stood
TIE cesnspaoa IA ne whole .chSms and puF.
pose Of Ire ban n n provide ior me receips q
cerofts IN me POST eshees Of me country and ne
Immediate transfer Of thers deposits 70 ire neigh
hoging bans and ne retention Of Ire deposits IN
TIE neigaboEine bank untn returned 10 the o.
rosit0f inc 0oVernment ~ ne United states
Inieuposing nnd acting 80 Ne AErnt Tor she w.
ccipi and cravryAncs % ire d4rcals 70 M haAk
and suaraateeias ne deposit hy ASSURING ths
po.ltnn Of principal debtsr.
This scheme Mr. Hoot declared % be
neither prudent, wise nor cOuaf liutianal
! per cent Of lhc receipts shall be deposited
and held In the natlonai Treasury a. . ~
serve fund. W per cenl BE- Invested IN bands
% the Government. and s5 Der cent de-
nosted u banks In tho tmmediata neiah-
borhood Of the ofice Of depogii. 90 n vas
for q tlnse proposed the whole amOunh
should b. deposited 4 further modinea-
lion prov ides that the locally Deposited
Ie aiihdrawn and Invested In bonds This
introduces the element o. possible o. nroh-
able constitutional safety The Congress
has power TO borrow money on the credit
Of the I nited states In time 81 peace or IN
time n war. for any use or purpose re-
Tardcd a. necessary or desirable. for the
replenishnent Of q depicted treasury, 10
build the Isthmlan Canal. or for any other
enierprise. The wisdom Of bOr.
rowing In tns particular way may h. IN
doubt. bat Of the risht - borrow there h
no question n bonds are available The
deposition may e be desires convert his :
PER cent deposit into 2;s pef cent bonds IN
Of $50. SO. eco. 80. sl0a or
sso II the depoeltOr prefers an open &C.
rount the position Of tho Government ~ q
borrower 10 not chanCsds
There may b. q doubt Of the proper au-
lhority for the borrowing Of the remaining
l5 per cent At per cent interest and 10
Immediate .oan 20 local banks 81 ~ Der
uent II b. however. assumed that the
power 10 recall these loans IN case OF o..
leency brings them also under cOnstliu-
iioRal provision. What the supreme Court
might decide In the event Of q test b entirely
= matter Of ihdi1 dual oplnion Il b az
sumed by he supporters Of tac scheme that
the blll In nv present form would stand the
test. The matter OF c0nstitsuiOnallty b
only one phase Of the measure, aRd y per-
haps the least uncertain OF its more iInpof-
tant places. A postal savings bank system
In this country " an experiment that may be-
beneficial 10 some o. may. on the other hand.
plunge the country into very serious fnan-
cial evilg~
Tho special point raised By Mr. Johnston
does not seem TO he Of x'sat Importance.
II b the possible uneonstitutionality Of the
scheme because a dishonest debtor might
svAds payment Of his debts by a deposit
that bic credhorp could not reach through
legal process. ] do not understand that
the measure provides any such refuge for
raacnR lax.
WASHINGTON. June a.