Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1910-03-11
AGAINST POSTAL BANKS


ago, the postal savings bank bill, which
has since passed that body, Senator Bailey
OF Texas. one Of the foremost constitu
tional lawyers in Congress. made the fol
lowing mastery argument in behalf Of .
strict and unvarying compliance with tn,
letter and spiritof the Federal Constitution
Mr.. President: This bill is subject Il
every objection which can be urged agains
any measure. 1t is Objectionable. in thu
first place, because Congress has no con
stltutional authority to pass it it is objec
tionable, in the second place, because il
violates a fundamental principle of al
good government by requiring the United
States to engage in business which be.
longs distinctly to individuals and corpor.
ations; and it is Objectionable, in the third
place, because it will produce more harm
than good in its practical operation. Either
OF those objections, If sustained, would be
enough to condemn it.
There have been four clauses of the
Constitution suggested as authorizing this
legislation and with the permission Of the
Senate | will examine each of them.
"One distinguished Senator has sue-
gested, more in the form of query, how
ever, than of a declaration, that this bill
might be defended under the commerce
clause Of the Constitution but before he
resumed his seat his own mental processes
had refuted his proposition, and he did not
press it. Others less clear of thought have
adopted the view which he suggested, and
while they have not advanced it in the
open Senate, they have insisted on il with
more or less earnestness in their private
conversation. A moments reflection, Mr..
President. will convince any one whose
mind is capable Of making an analysis that
ii is absurd to assert that the power TO
regulate interstate and foreign commerce
includes the power to receive deposits from
the people and then redeposit their money
with banks situated in the same State
Banking is not commerce but, sir, II it
were admitted that the banking business
Is commerce within the meaning of the
Constitution, such an admission would not
justify this bill, because the only commerce
which is subject to federal regulation is
commerce among the several States, or
with Indian tribes, or with foreign nations.
The Supreme Court has expressly decided
that one who deals in foreign bills of ex-
change is not engaged in foreign commerce,
and surely il is not an interstate transac-
ton when a citizen deposits his money
with the postmaster of the town or city in
which he lives. To receive money at the
post-ofiice and to deposit it in a bank stu
ated in the community is not commerce at
all and certainly ii is not interstate or
foreign commerce, which is alone subject
to the Jurisdiction Of the Federal Govern
ment.
Some have claimed that this bill is valid
under that clause Of the Constitution which
authorizes Congress to borrow money on
the credit of the United States, and it was
TO connect it with that provision of the
Constitution that the Senator from New
York offered his amendment. RECOGNIZING
that the power to pass this bill must be re-
ierred to some specific grant or grants, he
has sought to bring it under the borrowing
clause Of the Constitution. In other words
understanding that Congress has the power
to borrow money and that in exercising
such power it can receive the money which
1t seeks to borrow at its post offices as well
as Its Treasury, he has proposed an amend
ment providing that the money deposited
with these various post-offices should be
invested, so far as possible, in the securi-
ties OF the General Government That
amendment might make it possible for the
court to hold this bill constitutional, but
1t would still be none the less unconstitu-
tional. according to the conscience of every
senator because we all know that its pur-
pose is not to borrow money. and to incor-
porate such provision in it would be
palpable subterfuge invented to deny the
court the right to consider the bill accord
ing to its real purpose. | understand, how
ever. that the amendment proposed by the
Senator from New York, though approved
by the President in recent New York
speech as necessary to make the bill a
constitutional one, has been abandoned.
The power TO borrow money was vested
In Congress so that it might sustain the
Government in those extraordinary situa
tons when sufficient taxes could not be
collected to meet its current and necessary
expenditures. Such situations had arisen
in the history Of every country in the
world, and our fathers understood that they
would arise from time to time in our own
country. They therefore supplemented
the power Of taxation with the power TO
borrow and am Of the opinion that Con-
gress would have possessed that power as
necessary and proper means of execut-
ing other powers even II IL had not been
expressly granted. 1t was, however, ex-
pressly granted in a clause as brief as lit
erary skill could frame and as plain as the
English language could make it, Congress-
can call on the people for loan. and can
evidence its Indebtedness to them by bonds
bearing interest and payable at certain
time. or by notes bearing no interest and
intended to circulate as money, or by GER
tifcates of Indebtedness payable on de-
mand or payable at fixed day, with or
without interest The form in which the
Indebtedness may be acknowledged is with
in the reasonable discretion of CONGRESS-,
and II may adopt, within certain limits,
any form acceptable to those who are will
ing to lend it their money. Not only may
the Government provide the form of &C.
knowledging its Indebtedness. but il may
also provide the time and place at which
this borrowed money may be delivered to il.
II may require il to be deposited in such
national banks as ii may designate, or il
may require il to be brought to its sub
treasures, or II can require II to be deliv-
cred at the post-offices throughout the land