Elk City mining news. (Elk City, Idaho) 1903-1913, 1910-03-05

partment, with its 10000 postofices
and 10000 money order offices, offers
an economic and far-reaching machin-
cry in places remote from banks, and
among people who fear banks, who.
but for this opportunity would not
save, but spend. The low interest of
fered, that of per cent, prevents such
postal savings banks from interfering
with regular savings banks whose
rate of interest always is in excess of
2 per cent.
I'm the present stage of the senate
bill there have been inserted amend
ments drawn apparently for the pur-
pose of having money deposited as saw
ings in government postoffice dis
tributed through the locality where it
has been deposited, in the state and
national banks and so deposited as to
make it impossible for the trustees of
the fund appropriated under the law to
withdraw money for investment in any
other form.
May Defeat the Law.
Il regard such an amendment as
likely to defeat the law. First. be-
cause it takes away a feature which
ought to be present in the law to as
sure its constitutionality. If the law
provided that the trustees to be ap-
pointed under the law for the funds
thus deposited could meet the financial
exigencies of the government by pur-
chase 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 instru-
ment of national government in Dor
rowing money. We have now about
100000, 900 of 2 per cent bonds with
respect TO which we owe a duty to the
owners to see that those bonds NAV be
taken care of without reduction below
the par value thereof because they
were forced upon national banks at
tins low rate in order that the banks
might have a basis of circulation. This
implied obligation of the government
the postal savings bank funds would
easily enable it to meet.
" Secondly, if the funds are to be ar
bitrarily deposited in all banks, state
and national, without national super
vision over the state banks and a panic
were to come, it is difficult to see how
the government could meet its obi
cations to its postal savings bank de-
positors, because with every bank sus-
pending payment the funds of the pos
tai savings bank wound be beyond
the control OF the government and we
should have financial disaster greater
than any panic we have heretofore met.
- provision that when the money
is not needed 20 invest in government |
bonds or to redeem the same il may
be deposited in national banks in the
Of the place Of deposit
will avoid the great danger of a panic
and will strengthen banking system
which is AN arm Of the federal govern
ment.
~ sincerely hope that before the
measure is hammered into lis final
shape may take on these character
isties, which shall give IL q consti
tntional validity aud sound financial
strength aud usefulness. Those who
insist upon the elimination Of these
two necessary Characteristic features
Of the bill will pot the party in the
position where n can not hope 10 es
cape the charge that u is moi Ia good
faith in seeking the passage Of D pos
Gal savings bank aef, and Is not seek
az therefore % comply viii the prom
'se ~ iAe republican platform in that
regard.
Regulation o. hailEoad Rates.
''op iAe subject VI railroads ihe az
publlean platform said Ne approve
lAe enactment ~ the lailload rate lap
apf iAe vigorous epfoleemeui vi fAe
present administration NJ fAe statute
asaInsi lebsies and alsellminaiions sa
} iespli VI phieh advantage Possessed
NJ fAe lalsf phlppel olel fAe amaIlef
supper Aasf subsequently, dlseppealed
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