Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-02-13

| ii, that of per cent, prevents such post
al savings banks from interfering with
| regular savings banks whose rate of In
| tereet always is in excess of per cent.
/ I'm the present stage Of the Senate
bill there have been inserted amendments
drawn apparently for the purpose of hav-
eminent post offices distributed through
! the locality where deposited in the banks,
state and national, and so deposited as to
make it impossible for the trustees of the
| fund appointed under the law to with
draw the money for Investment in any
other form.
Likely to Defeat Law.
81 regard such an amendment as likely
| to defeat the law. First, because it takes
| away feature which ought to be present
| in the law to assure it's constitutionallty.
| If the law provided that the trustees to
be appointed under the law with the
funds thus deposited could meet the
| financial exigencieS of the government by
| purchase or redemption of the govern
ment ? per cent and other bonds. the
measure would certainly be within the
| federal power. because the postal banks
would then clearly be an instrument of
| the national government in borrowing
! money.
I'VE have now about 800. 100000 of >
per -cent bonds with respect to which We
owe duty to the owners to see that
those bonds may be taken care of without
reduction below the par value thereof.
because they were forced upon national
banks at this low rate, in order that the
banks might have basis of circulation.
| This implied obligation of the govern
| ment the postal savings bank funds
would easily enable 1t to meet. Secondly,
! If the funds are to be arbitrarily de-
posted in all banks, state and
national. without national supervision
over the state banks, and panic
az, hnr
the government could meet it's obligations
| to its postal savings bank deposltors, be-
cause with every bank suspending pay
| ment the funds of the postal savings
| banks would be beyond the control of the
government. and we should have a
! financial disaster greater than any panic
we have heretofore met.
"A provision that when the money Is
not needed to invest in government bonds
| or to redeem the same, 1t may be de-
posted in a national bank in the neigh
| borhood of the place of deposit. will
| avoid the great danger of panic. ana
will strengthen banking system Which
| is an arm of the federal government.
sincerely hope that before the measure
| is hammered into it's final shape It may
| take on these characteristics. which shall
| give 1t constitutional validity and sound
| financial strength and usefulness. Those
who insist upon the elimination of these
| two necessary characteristic features OF
! the bill will put the party In the position
where it cannot hope to escape the charge
| that 1t is not in good faith seeking the
passage of a postal savings bank act,
and is not seeking therefore to comply
with the promise of the republican plat
form in that regard.
As to Railroad Legislation.
ION the subject of railroads the re-
publican platform said:
1--WE approve the enactment of the
railroad rate law and the vigorous en-
forcement by the present administration
of the statutes against rebates and DIS
examinations as a result of which the ad-
vantageS formerly possessed by the large
shipper over the small shipper have sub
stantially Disappeared: and In this con-
Injection we commend the appropriation by
the present Congress to enable the inter
state commerce commission to thoroughly
investigate and give publicity to the &C
counts of interstate railroads. We be-
Ilieve, however, that the interstate COM
merce law should be further amended SO
as to give railroads the right to MAKE
and publish traffic agreements subject To
the approval of the commission, but
maintaining always the principle of COM
petition between naturally competing
lines and avoiding the common control Of
such lines by any means whatsoever. We
favor such national legislation and super
vision as will prevent the future over
issue of stocks and bonds by interstate
carriers.
"A bill to carry out these declarations
has been introduced in both House and
Senate and is now being considered be-
fore the appropriate committees of THESE
two bodies. and there is every hope that
the bills thus introduced in substantially
the same shape as introduced will pass
and be enacted into law. Indeed, this
railroad measure goes further than the
promise of the platform, for while 1t
subjects the issue of stock and bonds to
the restrictive supervision of the commis-
sion and prevents future watering OF
securities and forbids the acquisition by
| a railroad company of stock In .com-
peting line, it also puts very much more
power into the hands of the commission
| for the regulation of rates, and 1t ia
cilitates in every way the ease of super
vision by the commission of the rail-
roads to secure compliance by the rail-
road with the rights of the public and OF
the shipper. The bill was prepared by the
Attorney General, after full conference
with the interstate commerce commission,
with the representatives of the shippers
and with the representatives of the rail-
roads, and while 1t was not the result OF
an agreement between all the parties in
interest, 1t was drafted with view TO
meeting all the fair objections and sug
gestions made by every one of them.
Y