Show washington LETTER WRITTEN EXPRESSLY FOR THE BOX ELDER NEWS washington D C feb 28 president tafts principal piece of progressive gres sive legislation the postal sayings savings bank bill is in serious danger of defeat at the hands of the republican organization in the house of representatives it is intended by the leaders that the house will then work over it in committee change it considerably der ably report it late have it discussed previously in the house have it go to a conference ol of the two le legislative isla bodies and there if possible put pitt it to sleep the notion that this will be done Is so general at the capitol that chairman penrose of 0 the committee on post offices and postal roads has openly declared it to be his opinion that tile the bill will never be enacted into law at this session ol of congress several other senators have likewise expressed themselves in tile the house the opposition at this time is generally among the organization men and the success of the measure is under understood stood to rest entirely upon the power of the president to whip a sufficient number of votes into line to carry it and after that more force will be needed in the conference committee the opposition in tile the house to the establishment of a system of savings banks conducted by the govern government men t is due to several causes chief among them is the fact that such a system is regarded as a fundamental change which might lead to the concentration of greater power in the lands hands of the federal government many of the democrats who are defenders of state rights are considering the advisability of taking a stand against the bill on this gr ground aund back of this and perhaps if the truth be known a more important factor is the antagonism of private banking interests throughout the country who feel that the operation of postal banks under the proposed law would result in financial disadvantage to themselves these banks in a great many cases are said to have a hold upon the vote of individual members of oe congress brought about in this way an ambitious loung lawyer despies to run for congress lie he is urged to do so by a banker friend lie he replies that he can not afford to malce make the race the hie banker agrees to finance him on oil his note he gives the note runs is elected and is under obligation to the bank in this amei emergency gency the banker expects him to help defeat legislation that would mean a loss of money from his pocket this is not a criticism ol of members of congress the transaction is in every way honorable and has been krown known since the beginning of practical politics but it is nevertheless a fact and may be depended upon to be of importance in securing the defeat of the bill should it be defeated but just as in the right light for the enactment of the pure food law letters and telegrams to members of congress from voters and organizations in their respective spec tive home constituencies may have tho ahe effect ot of petting the doubting mm berk ber nov hs district want the bill to become law arid therefore want his bote ote to be registered in favor ot it because of the contention that the government Is going into the banking business and that such a business would be in competition with them the private banking interests that is the national state city and private banks are lined up tip against the measure now being discussed in the senate in other words the private interests are lining up against what is considered on the other side to be in the interests of all the alie people ot of the country the great banking interests which are centered in new york also see in the measure a menace to their privileges and they are active in bringing pressure sure to bear upon congress there Is some ground for this bellef belief on oil the part of 0 the moneyed interests that the postal savings bank bill it if enacted into law would bo be a menace to them the british post office savings bank has been a success since the day of its establishment in iggi it lias has grown from year to ye year until in it carried accounts to the number of and had total deposits amounting to almost every civilized nation on oil the earth with the exception of germany which has an eff efferent elent and widely patronized zed system of 0 municipal savings banks and tile the united states which has only scattered private savings institutions has followed the lead of great britain it is anticipated by those who are pushing the present measure and particularly by the president who urged a postal savings system in his message and postmaster general lilt hit who urged it in his annual report that it will operate to the great benefit of the working classes with deposits practically assured by the united states government it is by them that those who look upon deposits in private banking concerns as insecure even in the slightest de gree will widely patronize the savings banks of the government thus established on the assumption that the lend lead of great britain will be followed in large measure and that three quarters of a billion dollars would be deposited in tile the government banks it is not wondered at here that the private bankers who naturally want to use this amount of money in their own institutions are anxious to defeat the bill considerable pressure is already being brought to bear upon the members of the house by the president in fit anticipation of a struggle and headway in favor of it has been made by him but the question is will lie he bring enough pressure to put the measure through gli the fact that a congressional election is about to be held and that each members vote will be carefully scanned will it is believed here have more to do with favorable action than anything else the argument is being made by those favoring tile the bill that the private banking interests on the other hand would not be put to a disadvantage by it they claim it would be a hel help P and not a hindrance to private enterprise they say that postal deposits in those countries where it has been tried increases until they reach a certain point and then i remain emain stationary indicating first that the money which which has been reached is mostly that which can not be reached by private banks bank s and has been drawn fi from om places place of concealment or collected in exceedingly small sums and second that tile the patrons having accumulated a little money learn its earning darning power and decide c afi C place P I 1 a eia it belve ogreater invited by these advocates of the bill to the tact fact that in canada the deposits in chartered banks have increased from in 1903 to in 1907 whereas those in post office savings banks have increased from in 1903 to only in 1909 in the present bill the root amendment which proposes that tile the money deposited in the postal savings banks be invested in government bonds in order to assure the constitutionality of the law is not likely to pass the senate because of the opinion of a large number of members of that body that at the postal money should be left tree free and that it is constitutionally annee cessare ces sary nor will the smoot amendment proposing to put the money in local banks which in the opinion of the president would clearly make the bill unconstitutional be acted upon favorably vor ably when the measure I 1 finally passes the senate it will be I 1 in n the following form the postmaster gen eral will designate as rapidly as consistent with good administration the money order offices as places for the receipt of savings deposits and will be empowered to so designate such other offices kofl ices as lie he may seem advisable there are approximately money order post offices so that postmaster I 1 general hitchcock may at first restrict tile the depositories repositories deposit ories to post offices ot of the presidential grade of which there are about accounts may be opened by any person ten years or more 0 of age married women may have accounts free from interference by their husbands no person can call lia have e more than one account the minimum de cosite which will be accepted is one dollar interest is to be allowed at a rate not dot to exceed two percent per annum no account may have a total credit exceeding exclusive of accumulated interest and not more than may be deposited in any one month withdrawals may be made under rules and regulations to be prescribed r by the postmaster general postal savings funds so tar far as practicable will be deposited by the post masier master general in banks at a rate of not less than two and a quarter percent per annum the bill does not undertake to prescribe administrative details for tile the reason that it is believed wiser and far more prudent to leave such details to be worked out by the board ol of trustees in the light of experience it I 1 Is s considered that a rigid rule of law might greatly hamper administrative work detract from the efficiency of the system increase its cost and retard improvement all ali such details will be provided by a board to be appointed |