The San Francisco call., 1910-03-06
POSTAL SAVINGS
BANK BILL PASSED
After Lengthy Debate Senate
adopts Measure, Dividing
on Party Lines
Calculated That Law Will Bring
Oh of Hiding Wealth of
SI,000,00O,O0O

.tSHINGTON. March Dividing
practically upon party lines, the SEN
ate al The close of the third session of
the legislative day Of March 8, today
passed the administration postal saw
ings bank bin.
OF tne - votes cast so were in favor
Of the bin end 22 against il. All the
legative votes Were cast by democrats,
even McEnery, who had voted with the
republicans throughout the considera-
tion of the bin, in the end deserting TO
his own party. Senator Chamberlain
uf Oregon was the only democrat who
stood with the republicans in favor Of
The bill.
PRESIDENT MAY DRAW
As it goes 70 the house the bill au-
thorizes the various money order de-
partments in postofices to accept sums
of 81 or more from depositors and to
deposit these sums in the local banks.
where the money is to remain unless
Withdrawn by the president in case of
war or other exigencies. In case of
this withdrawal the funds are 10 be in
vested in government securities. but
with the prOVisO that such securities
shall not draw less than , 4 per cent
interest. The control of the funds is
vested in a board OF trustees composed
Of the postmaster general, the secre-
tary of the treasury and the attorney
general. The aggregate balance al
lowed to any depositor is $500. and no
person is permitted TO deposit more
than 500 in any one month. The gov
ernment is required to pay per cent
interest and must exact not less than
~ per cent from the banks the extra
quarter Of I per cent being required
for the payment Of expenses and losses
WILL RESURRECT WEALTH
il Is calculated that such law
viii bring much money out OF hiding
and result in a fund ranging all the
way from $500. 600. 600 to $1,000. 600 000
Almost Immediately after the session
began the first vote was taken. This
was on the Cummins amendment to the
Smoot amendment, upon which yester-
days debate waged so fiercely.
The Smoot amendment looked to the
authorization of ihe withdrawal from
the local banks Of the postal funds in
case Of war or other eXigency, and
Cummins sought to modify it by max
ing it apply TO war as the only eXl-
gency justifying Withdrawals. The
Cummins provision Went down under
n vote Of 80 10 IS, the affirmative vote
being cast by the so called 'insurgent"
republicans and a half dozen democrats
with the single exception of Senator
McCumber, d stalwart republican.
ADOPT sMOOT AMENDMENT
Later in the day and after consid
erable debate. the Smoot amendment
was adopted after. il had been modi
ned by the insertion Of an amendment
introduced by Senator Borah directing
that the funds withdrawn should not
he invested in government securities
carrying less than = per cent interest,
the rate required from the banks.
The sharpest discussion of the day
arose over Gallinger's amendment in
Guiding savings banks and trust COM
panies in the specific terms Of the bill
1t was bitterly opposed by Hepburn
and. in less degree, by Bailey.
During the debate Senator Page made
reply TO a recent estimate of Senator
Bailey that $4,000 additional govern
-ment employees would be necessary II
the bill became a law. Page said 500
men could do the work.
A number Of democratic senator's, in
Guiding Gore, Stone and Bacon, spoke
in general opposition TO the measure.
They saw ia it the forerunner of
great central bank and regarded the
legislation as unconstitutional