Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1910-03-06
Administration Measure is Fin
ally Passed by a Strict Party
Vote After More Than Month
Of Consideration,
EXPECTED TO DRAW
GREAT FUND FROM HIDING
Intimated That Amendments
Accepted by the Senate May
Result in Executive Disap-
provaI Of the Legislation,

lby Morning sssurDsI sDeciaI Leases Wirel
Washington, March 5. - Dividing
practically upon party lines. the SEN
ate at the close of the third session
i of the legislative day of March 3. to-
day passed the administration postal
savings bank bill,
OF the seventy-two votes cast. fif-
ty were In favor OF the bill and twen-
tv-onc against All the negative votes
were cast by democrats. even Mr. Me-
Emery, who had voted with the repub-
leans throughout the consideration OF
the bill. in the end deserving to his
ToNn party Senator Chamberlain of
Oregon was the only democrat VINO
stood with the republicans in favor OF
the bill.
AS it goes to the house the bill au-
thorizes the various mOney-order post
offices to accept sums Of one dollar
or more from depositors and deposit
these sums in the local banks where
the money Is to remain unless With
drawn by the president in case of war
or other eXigencies, In ease Of this
withdrawal. the funds are TO be IN
vested In government securities but
with the proyiso that such securities
shall not draw less than ia per
cent interest. The control OF the funds
Is vested in a board OF trustees COM
posed Of the postmaster general. see
retarv Of the treasury and attorney
general.
The aggregate balance allowed 10
any depositor is $500 and no person is
permitted to deposit more than S100 in
any one month. The government Is
required to pay two per cent interest
and must exact not less than Ia per
cent from the banks, tho extra quarter
of one per cent being required for the
payment Of expenses ana losses
1t is calculated that such q law
would bring much money out Of hiding
and result in fund ranging all the
way from five hundred million to
billion dollars.
Beginning at 1l;45 o'clock today the
senate session continued until 1850 D.
m and practically all this time was
devoted to consideration of amend
ments.
Immediately after the session be-
gan the first vote was taken. This
was on the Cummins amendment tD
The Smoot amendment on which yes
crday's debate waged so fierceiy.
The SmoOt amendment looked to the /
of the Withdrawal from
The local banks of the postal funds in I
Ease Of war or other eXigency and
Nr. Cummins sought to modify il bS |
nakiEy' apply to war as the only |
sxigdM ustifying Withdrawals Th I
fumk NJ provision went down unde /
/ vqE u forty to eighteen, the affirm /
ltiNf'[ Dte being cast by the so-called
'inst'rgent' republicans and half |
lozen democrats with the assistanc
# Senator McCumber, stalwart re-
publican
Later In the day and after consid-
rable debate the Smoot amendment I
vas adopted after il had been modi-
led by the insertion of an amendment
Introduced by Senator Borah directing
hat the funds withdrawn should not
'e invested in government securities
arrying less tahn Ia per cent in
crest, the rate required from the
anks. As adopted. the amendment.
n the shape of a proviso reads.
The Smoot Amendment.
When in the Judgment Of the presi-
ent war or any other exigency in
diving the credit OF the government
o requires, the board Of trustees may
'ithdraw all or any part of said funds
nd invest same in bonds or other se-
uritics of the United States; Proyid-
d, that no part of said funds shall IN
ny event be invested in bonds or 9TH
r securities bearing interest at less
lan 2 IA per cent per annum I
Two other important amendments ,
ere adopted today one of these was /
lggested by Senator Bailey and would :
eImit the withdrawal OF postal fund :
enosits bv the original depositors =
upon demand" and the other BY !
snator Gallinger specifically included [
wings banks and trust companies do 4
g a banking business. among the q
mixing institutions permitted to ac- 4
,pt deposits of postal funds. y
Insurgents Eiatcti. ii
Tho "insurgcnt' republicans were y
uch elated over the acceptance of the /,
orah modification. They contend IL y
in reduce to "a minimum the gov Il
nmcnt securities in which the postal n
nds may be invested and prevent ma 81
)nal banks from using the funds TO d
ieVe themselves Of "a class Of secur-
les that are not popular with them. b
sir. carter. in charge Of the bin W
ade no objection to the Borah RI
nendment. lie simply remarked that {,
was fair to require the government n
pay the same interest required of "
e bank and that there was no rea W
n for opposing. The provision was
reed 10 fOrty-nine TO eleven 4,
Several amendments we're voted y
wn. the most important being one
fered By Mr.. owen of Oklahoma
lich was intended as a substitute for
q whole bill and which provided for
e. establishment of fund To guar ~
tee national bank deposits. 0t
Says Public VIII I,cpudiate II. af
The sharpest discussion of the day al
ose over Mr. Gallingcrs amend III
mt including savings bank and trust m
npa nies in the specific terms of the tn
u. II was bitterly opposed BY Mr. ia