The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-02-01
CARTER PLEADING FOR
POSTAL SAVINGS BANKS

WASHINGTON, Jan. 3l.-The United
States is the only first-class power in
the world to deny to the people the privi-
leges and the blessings enjoyed by n post.
al savings bank. said Senator Carter of
Montana, speaking in the senate today
on the bill to establish postal savings
the last Republican platform. as well as
in several other party Platforms Of the
support given 10 the measure by former
President Roosevelt and by President
Taft. and also by number OF the post
masters-ge of the last forty years.
Answering numerous objections TO post
al savings banks, Senator Carter said
they would not be a menace to the pres
ent banking system of the country, that
the present system OF banks even II they
were sufficiently numerous, could not
reach the people In the rural and sparse,
ly settled districts, whom the postal
banks are designed TO benefit. The post
al repositories. he declared, would en-
courage thrift; would bring into ctrcu-
lation much money now held in hiding.
and would impel foreigners who now send
much OF their savings home TO deposit IN
savings banks in their own countries to
place II In the care of this government.
Not Untried Measure.
In referring to countries that have such
operated In countries of limited extent
and those of broad territorial expanse
with equal facility and satisfaction"
Answering the objection that the es-
would be an unwarranted use OF power
by the government, he claimed that the
bill only elaborates use TO which the
postal service Is now subjected, for, as
| the report of the committee Will show, IL
large sum OF money In all the states and
| territories is invested in money orders.
| payable TO the purchasers and renewed
annually at an expense of SO per $1,000
as a penalty on thrift.
THE prime purpose OF the measure.
he declared. '.ls to encourage thrift
| N ~ hn hN, f,r,-
! nishing widely distributed, convenient
and absolutely safe repositories, wherein
small sums may be placed at a loy rate
Of interest, with the faith and credit OF
| the government pledged TO the repay
ment OF principal and interest on de-
| mand,"
other banks were widely distributed they
| would not be patronlZed to any consider
able extent b" the class of people to
whom the postal savings depository
| would furnish the neeGful elements OF
| convenience and absolute confidence. TO
| the charge that such n system might be
held unconstitutional, he answered that
| the microscope has not been made that
can disclose the difference in principle
| between the money order system and the
system here proposed,
Would Help Other Banks
This system. said Senator Carter. in
stead OF being a menace to the banks
would prove a source of strength Such
| had been the results wherever postal
banks had been tried.
The bill before the senate provided that
the system be directed by a board OF
trustees, to be composed of the secretary
OF the treasury, the postmaster-general
and the attorney-general. The board us
to report to congress at the beginning OF
authorized TO issue posrofnce money or
ders and such others as the postmaster
general may designate, are TO be postal
| repositories.
Any person more than 10 years OF age
is eligible to make a deposit, although
no account of less than one dollar can
be opened, and no person may deposit
more than 500 in one calendar month or
| more than $500 altogether. not counting
accumulated interest, Interest Is to be
at the rate OF per cent a year.
Gallinger Views.
When Senator Carter closed. Senator
Gallinger expressed the hope that the bill
would he thoroughly discussed, He said
! that in II the country was undertaking
| to enter upon an experiment and he
hoped that the measure might not be
| crowded through. was the corporation
tax in the last session
Senator Hepburn propounded a num-
Der of questions TO Mr. Carter which
there was no effort in the bin TO define
| the methods OF withdrawing money by
| depositors or by the government from
He indicated that the board OF trustees
provided for by the bill had been given
| too much authority.
Mr.. Cummins agreed with Mr.. Hey
| burn, and expressed the view that II
! there was no provision preventing q gen
| eral withdrawal OF tne savings funds
from the banks and their concentrat ton
in any one locality. the measure would
| be very defective,
Mr., Carter contended that the bill
would be found sufficient to meet all
| emergencies.
Saying that probably the board would
consist of the postmaster-gene the
attorney general and the secretary OF the
| treasury. Mr. Carter expressed the opin-
ion that those officials could always be
depended upon 10 supply the integrity
and the capacity TO conduct properly the
business entrusted to them.
Mr.. Hepburn contended for restrlc-
ton in the bill that would insure the
keeping OF the deposits OF any communi-
ty In that community