The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-05-12
POSTAL SAVINGS
BILL IS DRAFTED
Compromise Agreement Is
Reached by Republicans.
TAFT URGES IT'S PASSAGE
Bank Deposit Proposition Is Empodied
in Proposed Bill Which Is Thought
TO Re the Means of Saw
ing the Measure
BY wArTERsoN sTEALEy

Washington May 11-(Special)-A ten
tative compromise agreement has been
reached among republican leaders IN the
House upon the postal savings bank Dill,
the passage of which is now being siren
uously urged by President Taft, as the
next important feature of the adminis-
,tration programme to be considered. This
compromise will result in a bank deposit
proposition radically different from the
main feature of the measure which the
Senate passed more than two months ago.
but 1t appears to be the only plan upon
which the republicans of the House can
reach substantial agreement
The draft of the compromise Is now be-
ing perfected and toward the end Of next
weel, will be ready for submission to
republican caucus. There the whole sub
ject of the method of disposing of the
postal deposits among the banks OF the
country and its collateral aspects will be
threshed out in party council.
The bill as agreed upon in caucus will
be submitted to the House as party
measure and it's passage will be attempted
under a special rule to be rer
the republicans of the newly ,D-sanIzed
committee on rules.
The rock upon which the bill, as passed
by the Senate March 3. was wrecked In
the House committee on postoffices in sec
ton s of the BILL which provides that
postal savings funds received under the
act shall be deposited in any solvent bank,
state or national, doing business in the
community In which the deposit is made
with the postoffice, these deposits being
loaned at not less than "a per cent inter-
est, and secured by indemnity bonds from
the banks, the funds to be deposited with
the treasurer of the United States upon
refusal of the banks to receive them.
There was also a provision in the SEN
ate bill authorizing the President when
war or any emergency involving the credit
of the government requires to with
draw all or any part of the funds from
the banks for investment In bonds or
other securities of thh Uaited States.
| Efforts to induce the House committee
on postoffices and postroads to accept
these provisions of the Senate bill met
with absolute failure Sentiment in the
committee Is overwhelmingly against
committee can agree is compromise be-
tween >(e western idea of retaining the
funds in the communities in which they
originate and the New England bankers
idea of bringing these funds into the fed
eral treasury through which channel
| there has been suspicion among western
members that the millions deposited as
postal savings would pass along to Wall
street.
Approaching the insuperable difficulty
of forcing the Senate bill down the throat
of the House, President Taft has con-
sented to a compromise and a sub-com-
nittee, Chairman Weeks and Huff of
Pennsylvania; Lowden of illinois. Durey
Of New York and Hamer of Idaho, is
daily engaged in conferences over the
proposed compromise bill. Moon of Ten
nessce and Small of North Carolina. the
two democrats of the subcommittee, are
being consulted only incidentally When
the compromise draft is completed these
minority members will be called in and
allowed to inspect the revamped section
s. but the republicans. II they agree
among themselves. do not propose to
allow the democrats to have much to
say respecting the form in which the
bill is to be submitted
Emergency Withdrawal
office committee republicans to strike
Gu. all after the enacting clause OF the
Senate act and substitute the bill intro
duced by Representative Gardner Of New
Jersey a few weeks ago. 1t talles with
the Senate act in most essential partic-
ulars, except the eighth section, the main
bone of contention. This section has been
rewritten and as tentatively agreed upon
provides. like the Senate bill. that the
postal depository funds may be invest
ed in both state and national banks at
not less than 214 per cent interest
The Senate bill provided not less than
~ per cent interest. nor more than is
SUFFICIENT to meet the interest paid to
depositors," but this maximum limita-
ton will be eliminated In the House COM
promise, which also knocks out that pro-
vision of the Senate measure which pro-
yi6ed that the banks receiving deposits
should furnish indemnity bonds to insure
the safety and prompt repayment Of de-
rosits on demand Instead of these in
demnity bonds the House compromise
prcvides that the money deposited with
the. banks shall be secured by govern
rent, state or municipal bonds. behind
which there is the power of taxation
Substitute Clause
The most interesting feature of the
House subcommittee compromise. which
will be submitted to a republican caucus
in about ten days, is the provision that
s per cent of the postal depository funds
shall first be set aside as a reserve
fund.
or the remaining 95 per cent, one-half
or 471a per cent, would be invested at
the discretion of the trustees in govern
ment bonds. by putting out among the
people a new issue of bonds In, denomi-
ms tjons of $24 drawing interest at 2lA
per cent, the funds derived from their