The Birmingham age-herald., 1910-02-01
POSTAL SAVINGS
 BANK ADVOCATED Senator Carter Speaks on Sub-
 ject In the Senate
70 3EICNERS ARE EXAMPLE
Postal Bank Systems of Europe Are Held Up as Instances of Success full Working of the Bank
 ing Plans.

l Washington, January 31.-The United States is the only first-class power in the world to deny to the people the priv ileges and the blessings enjoyed by a pos tai savings bank system, declared sen ator Carter of Montana speaking today in the Senate on the bill to establish pos tai savings banks. favorably reported from the committee on postoffices and postroads.
 l Mir. Carter spoke of the promises made in the last republican platform as well as in several other party platforms, Of the support given to the measure by for mer President Roosevelt and by Presi- dent Taft, as also by number of the postmasters general of the past 40 years, and outlined the present bill.
 Answering numerous objections which have been made against postal savings banks, Senator Carter asserted that they would not be a menace to the present banking system of the country; that the commercial banks, even if they were sui fciently numerous, could not reach the people in the rural and sparsely inhab- ited districts whom the postal banks are designed to benefit, and said the postal Repositories would encourage thrift, would bring into circulation much money now kept in hiding.
 He said it would impel foreigners who now send much of their savings home for deposit in savings banks in their own countries to place it in the care of this government.
 In referring to the countries which al- ready have such system, the speaker said that Tt is operated in countries of linn ited extent and those of broad territorial expanse with equal facility, success and satisfaction
 Answering the objection that the sys- tenn of the postal savings banks would be "an unwarranted use of power" by the government, he claimed that '"rhe bill but elaborates a usage to which the postal service is now subjected, for as the report of the committee will show, a very large sum of money in all the states and territories is invested in money orders payable to the purchaser and renewed an nually at expense of 8 per 5000 as a penalty of thrift"
 ''The prime purpose of the measure,' he declared. lis to encourage thrift among the masses of the people by furnishing widely distributed, convenient and ab-
  sums may be placed at a low rate of in- terest with the faith and credit of the government pledged to the repayment of principal and interest on demand.'
 Senator Carter held that if the commer- cial and other banks were widely dis tributed they would not be patronized to any considerable extent by the class of people to whom the postal savings depos- itory would furnish the needed elements of convenience and absolute confidence As to the charge that such a system might be held unconstitutional he an- swered That the microscope has not yet been made which can disclose difference in principle between the money order sys- tenn and the system here reported"
 This systm, he claimed, instead of be- ing a menace to the banks would prove a source of strength to the financial struc- ture. He said that such had been the experience wherever it had been tried