New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-03-06
VOTE WIS 80 TO 22, on
pIRTY LINES.
Roots Speech Uon Insurgents
Orcr-FHnds Nag BE Incest
I'd an Government Bonds.
rrron, The Tribune Bureau.l J

-
90 - and all the Democrats, with the
exception Of Senator Chamberlain "i
oregon. voted against it
When the Senate took recess last
,,,-,, - seemed an almost impossible
-!sk 10 bring about an agreement on lhe
lser,blicsn side which would result IN
solid marty vote for the legislation
7.-on,iseG in the last Republican plat
.srln. The Republican insurgents had
made bitter speeches against the Smoot
a-.?,rolnent while the regulars insisted
that thic amendment was vital TO the
,CuStitutl0nalitv Of the bill. 1t was eX-
,.t.-ted that there would be oontlnua-
licn to-day Of the bitter debate of yes
fardav. but this was avoided when Sen
tor Carter. in charge OF the bill, made
n concession which stripped the opposi-
;ion to the Smoot amendment OF lis
greatest fear
= was apparent from the develop
r7ents to-day that the speech made yes
1ordav by Senator Root had a profound
5r-uence on the Senate. It does not
at1en happen that Senate speeches make
ties on important questions. but Mr..
Roots earnest appeal apparently could
not be answered. and after nights
reflection the insurgents We're in a more
Conciliatory mood. Mr.. Carter was will
ing 10 meet them half way, and early in
the day compromise was reached.
For the last week the Smoot amend
r3ent has beer the barrier in the way OF
this legislation This amendment pro-
zides that the postal savings funds may
~, oar7-
in the Judgment Of the President. war or
any other exigency involving the credit
o. the United States SO requires The
administration forces insisted that an
amendment Of this character was essen
tai to the constitutionality OF the bill
The critics Of the Smoot amendment saw
plan 10 take The postal funds out of
the neighhorhood OF their deposit and
send them u the great financial centres
They alleged that il was the purpose of
the amendment TO enable the postal
funds 70 be invested in , per cent gov
eminent bonds with a view TO preventing
them from going below par. Another
criticism OF the amendment was that II
was a preliminary step in the direction
Of a central bank
Senator Cunamins wanted the right of
the board Of trustees TO invest in gov
ernment bonds limited to time Of war.
The CImmins substitute was defeated as
soon as the Senate met 20 TO is Those
voting for il were Senators Beveridge.
Bcrah, Brown, Burkett, Chamberlain,
CIapp Clarke, Of Arkansas: Crawford.
ClIIanlins, Dixon. Dolliver. Gamble La
Toilette. McCumber. Owen. Shively.
Stone and Tanaferro. Only thirteen
Democrats voted on this question, and
seven Of them were against the Cunlrlins
substitute
Senator Bo-ah then offered an amend
-1enI 10 the Smoot amendment provid-
ing that postal funds shall not be in
vested in any bonds bearing less than
"a per cent interest. This was accepted
oy Mr. Carter. but on a record vote six
Republicans and five Democrats voted
against il They were Senators Brande-
gee Burnham, Burton, Bulkelev Kean
and WetmOre, Republicans. and Bank
head, Money, Paynter, Rayner and
Smith Of South Carolina, Democrats.
The amended Smoot amendment was
then adopted. IS 10 "a
An amendment by Senator Bailey. !
making postal funds payable on de- |
n-and. was accepted, and an amendment /
b. Senator GaIlinger. providing that pos
tal funds may lie deposited in savings /
banks and trust companies doing
hanking business, was adopted
How the Bill Now Stands.
As It goes 10 the House, the bill au- /
thorizes the money order postofices to .
accept sums OF 81 or more from depos- |
itors, and 10 deposit these sums in the
local banks where the money is 10 re-
main unless withdrawn by the Presi- /
cent N case Of war or other exigency.
IN case Of this withdrawal, the funds are
u be invested in government securities.
but with the proviso that such securi-
ties shall not draw less than "a Del. cent
interest The control of the funds is
vested IN q board Of trustees comDosed
q the Postmaster General. the Secretary
o1 the Treasury and the Attorney Cen
eraI
The aggregate balance allowed 10 any
oepositor is 500. and no person Is per-
nltted 70 deposit more than 500 in anv
ole month The government is required
to pay per cent interest. and must ex-
act not less than "a per cent from the
"aE.ks, The extra II per cent being re-
CURED for the payment Of expenses and
losses
i = calculated that such a law would
Ing much money out Of hiding and re-
st"l @ ih fund ranging ali the way from
e-"ouvovyo u Sl,eo0,oaGD
Inc Snloot amendment. as adonted
.o1ds: f'N0'
When. in the judgment of the praei-
cent, var or any other eyigencJ invol,,-
lAs ue credit Of the goycrnr,,e,,+ co "a
cures, the board Of trustees ma, ,,,5tb
cfaw all or any part Of said furdc fro,,,
N-e pailhS and invest the same in Fon6s
oI "I.eF securities OF the United Cta,ec.
PROVIDED. that no part Of said funds eLaliI
II any event be invested in bc,7ds o-
oIher security bearing interest at leee
Ian : K per centum per annurn.
Several amendments were. yo,.5 7>,,,r,
'i2e most important being one offeraa In,
M. owen. Of Oklahoma. which vas in
tended as q substitute for the whole bin
"hd provided for the establishment of =
l-Ao 10 guarantee national bank de-
POSTS along the lines Of the state banl,
Continued on second napn