Los Angeles herald., 1910-02-01
CARTER BOOSTS
POSTAL SAVINGS
BANK MEASURE
SENATE LISTENS TO ADDRESS
BY M0NTANAN
soLoN REMINDS PARTY OF ITS
uNFULFlLLED PROMISES
Many Objections to Republican Project
Are Answered in Long Speech at
Which Constituents at
First Protest
ASSOCIATED Press1


today with his speech in the senate
in support of the postal savings bank
bill, which he delivered in accordance
with a previous notice, but the general
consent did not extend beyond this
courtesy.
Mr.. Carter took the floor as soon as
/ the routine business was disposed Of
/ but before he had begun his remarks
/ Senator Bailey interposed to say he
assented to the taking up of the meas
/ uTe only for the purpose OF speech
making and that he would not agree
to the displacement of the regular bus
mess, which is the Alaskan legislative
council bill.
! Senator Carter explained that there
would be no effort permanently to dis
/ place the Alaskan bill.
/ The United States is the only first
/ class power in the world to deny to
/ the people the privileges and the bless
/ ings enjoyed by a postal savings bank,
/ said Senator Garter.
! He spoke of promises made in the
1 last republican platform, as well as in
/ several other party platforms; of the
support given to the measure by form
/ er President Roosevelt, and by Presi-
/ dent Taft, and also by a number of
/ the postmasters- general of the last for
4 ty years.
| Answering numerous objections to.
! postal savings banks, Senator Carter
said they would not be a menace to
/ the present banking system of the
country, that the present system of
/ banks, even if they were sufficiently
in the rural and sparsely settled dis
tricts whom the postal banks are de-
/ signed to benefit.
Would Encourage Thrift
/ The postal depositaries, he said,
4 would encourage thrift, would bring
/ into circulation much money now kept
in hiding and 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 the government.
! In referring to the countries that
/ have such a system, the speaker said
| that "it is operated in countries of
| limited extent and those of broad ter
| ritorial expanse with equal facility,
! success and satisfaction"
! Answering the objection that the es
| tablishment of postal banks would be
| an unWarranted use of power by the
! government, he claimed the bill only
| elabOrates a use to which the postal
service is now subjected, for, as the
report of the committee will show, a
J
and territories is invested in money
| orders payable to the purchasers and
| renewed annually at an expense of IS
| per $1,000 as a penalty on thrift.
THE prime purpose of the measure"
he declared, "is to encourage thrift
among the masses of people by fur
nshing widely distributed, convenient
and absolutely safe depositaries where
in small sums may be placed at low
rate of interest with the faith and
credit of the government pledged to
the repayment of the principal and in
terest on demand"
He held that if the commercial and
other banks were widely distributed
they would not be patronized to any
considerable extent by the class of
people to whom the postal savings de-
positary would furnish the needful ele-
ments of convenience and absolute
confidence.
mo Difference"
To the charge that such a system
might be held unconstitutional, he an
swered that the microscope has not
been made that can disclose the differ
ence in principle between the money
order system and the system here pro-
posed.
This system, said Senator Carter,
instead 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 post
master general and the attorney gen
eral. This board is to report to con-
gress at the beginning of each regular
session.
Every postoffice authorized to issue
poStoffice money orders, and such 9TH
ers as the postmaster general may
designate, are to be postal depositaries.
Any person more than 10 years of
age is eligible to make a deposit, al
though no account of less than 81 can
be opened, and no person may deposit
more than $100 in one calendar month,
or more than $500 altogether, not count
ing accumulated interest.
Interest is to be at the rate of per
cent a year.
When Senator Carter closed Senator
Gallinger expressed the hope that the
bill would be thoroughly discussed. He
said that in it the country was under
taking to enter upon an experiment,
I and he hoped the measure might not
be crowded through, as was the corpo-
ration tax bill in the last session.
Senator Hepburn propounded num-
ber of questions to Mr.. Carter which
were lillGluNu " tiiNAN tliS AoSb NtiAS
there was no effort in the bill to define
the methods of withdrawing money by
depositors or by the government from
the banks when once deposited in
them. He indicated that the board of
trustees provided for by the bill had
been given too much authority.
Agrees with Hepburn
Mr.. Cummins agreed with Mr. Hey
burn and expressed the view that ii
there was no provision preventing
general withdrawal of the savings
funds from the banks and their con-
centration in any one locality the
measure would be very defective
Mr.. Carter contended the bill would
be found sufficient to meet all emer-
gencies.
Saying that probably the board
would consist of the postmaster gem
eral, the attorney general and secre-
tary of the treasury, Mr.. Carter ex-
pressed the opinion that those officials
could always be depended on to sup
ply the integrity and the capacity to
conduct properly the business en-
trusted to them.
Mr. Hepburn contended for a re-
striction in the bill that would insure
the keeping of the deposits of any
community in that community.
Responding to a remark from Mr..
Hepburn in criticism of the failure OF
the bill to provide for disbursing OF