New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-03-05

should remain unchanged. The Cummins
( modification he pronounced worthless and
equivalent TO yiping off the statutes anv
provision FOR government investment as
me % the purposes of the bill.
Fears Effect on Business
Mr. Root said he regarded the effect on
business of the proposed legislation as of
Tar greater importance to the country than
the Constitutional view. and he said Con
sress in way TO make a mistake
which could not be remedied by the courts
/ he pointed out the serious aspect of the
assumption by the government of obliga-
tons which probably would amount to at
least sseo,0000o0. which would be secured
| by no resources except the deposits in the
banks. OF these banks he said there we're
more than twenty-five thousand state and
national. Most of them were safe. but
some probably were not. Moreover no re-
serve was TO be required. and it should be
borne in mind he continued that by no
means all of them would be under govern
ment or state supervision.
MI Root :" il was generally admitted
that the Ct financial system was a
mlsht. and consequence it happened
lhat Wher strings of finance were
Drawn tight system sure to be
pulled the Wing way On such occasions
the banks were unable to pay, confidence
was lost and panic ensued He felt COM
petent, he said, TO speak on this subject FOR
either on account of official or professional
connections he had been in a position of re-
sponsiblhty in each financial depression
since that of 1873
W hen such times as those come where
VIII THIS bill leave the government of the
United States. with its 500. O00 600 of obliga-
TONS 10 postal savings bank depositors, and
without any security except that supplied
by the banks. which can no more pay the
government than they can pay any one
else?" he asked. Instead of the bankers
and brokers going to the wall the Treas
ury OF the United States will suspend pay
ment, the credit of the government will be
destroyed. Then what will become of the
industrial system of the country?''
In all past financial troubles the govern
ment had remained solvent he said 1t
had stood like rock. and there had never
been any lack of confidence since the re-
sumption OF specie payments in 1879
lie explained the governments system of
Keeping working balance in the Treasury,
and how this system had been utilized in
lSo' by an order written in the Presidents
office TO avert even more serious conse-
quences than had befalen
The world knew that those securities
meant cash" said Senator Root That is
the one and only life preserve- we now
have in our financial system"
With the pending bill adopted he feared
that the obligation would he greater than
the government could carry
1t Is all very well to encourage thrift
SAID Mr. Root. but there rests upon us |
higher duty. - that is the maintenance of |
the credit of the country, and on nv oath
as Senator of the United States / cannot
give my assent to measure which will i'm
peril that credit, and which would en-
hanger the good name of our country and
he perpetuity Of its prosperity / there
tore beg of you not TO permit any con-
to lead away from the path
way of safety and constitutional right"
In response TO questions by Mr. CIapp,
Ir Root said his amendment contemplated
he investment OF the postal funds in bonds
o be issued hereafter. He said he hardly
bought the board would approach invest
nent in the $4,000. 900 existing per cent
onds. some had feared