THE ROLL CALL

The Roll Call ON MEN AND MEASURES Making Way for the Central Bank THE history of the postal savings bank legislation in the Senate, as developed during the past week, is another demonstration...

...Provided, the postal savings deposits should be invested in government bonds now owned by the national banks...
...The Roll Call ON MEN AND MEASURES Making Way for the Central Bank THE history of the postal savings bank legislation in the Senate, as developed during the past week, is another demonstration that the people can not have, at the hands of this irresponsible and irresponsive body, legislation in the public interest except that legislation be coupled with concessions to special interests more desired by the System than the defeat of the people's measures unless such legislation can be passed in spite of the Aldrich machine...
...These banks own more than $700,-000,000 of the $913,000,000 interest bearing debt...
...It must not be...
...Kansas City Star...
...Strange and sudden transformations followed...
...The result was an amendment to the postal savings bank bill, to create a market, perhaps a very good market, for these government bonds in the hands of these national banks, by providing that the savings of depositors in the postal savings banks to be established should be invested by the Government in these government bonds...
...The scheme was framed up accordingly...
...Fractically the entire group of Aldrich "me-too" Senators, who voted in the last Congress to postpone to death the postal savings bank measure, were found suddenly converted to its merits—"PROVIDED...
...Meantime the Aldrich monetary commission has determined, more or less definitely, upon a program of currency "reform" which will best serve the interests of high finance...
...Cannon declares that he will never quit under fire, Won't everybody please quit firing for a little while?—Chicago Record-Herald...
...They hold the bonds under special inducement as to circulation privileges, and have suffered a loss of $30,000,000 in their premium accounts by reason of the depreciation in Governments during the last two years...
...The storm of protest aroused by the perfidy of the tariff revision forced the machine leaders in Congress to the conviction that some pretense must be made to redeem some of the platform promises of the party...
...If it is convenient and profitable for the farmer to be brought into prompt communication with the city merchant, it is no less so for the city merchant to be able to reach the farmers promptly.—Springfield Union...
...The National City Bank of New York, dear reader, is the head of the powerful Standard Oil system of banks and trust companies that controls for Standard Oil the financial business of this country in which the rest of us are graciously permitted to exist...
...But it would interfere with the System's centralized control of the money supply of the country...
...The Standard Oil financial system has very keen interest in the disposition of the deposits in postal savings banks also for another reason...
...Grave and profound doubts as to the constitutionally of such a measure, heretofore voiced in the Senate by "able constitutional lawyers" of that body, were set at rest—"PROVIDED...
...For a considerable period it was on the calendar as the "unfinished business...
...Only very rich and fertile land can stand the waste...
...Its answer has been attempted, in connection with the pending postal savings bank legislation, by an amendment providing for the investment of postal savings deposits in United States bonds, thus making a market for securities bearing the low rate of two per cent...
...In accordance with the interests and desires of Standard Oil-Morgan finance, an amendment to the postal savings bank bill was duly offered by Senator Smoot to provide for the investment of the savings deposits in Government bonds...
...It was soon realized, however, that opposition to this scheme would be encountered from an important source—a "respectable" source...
...To this amendment Senator Cummins offered an amendment, restricting the investment of postal savings deposits in government bonds to times of war...
...It was an occasion for "statesmanship...
...Read the following, from the March bulletin of the National City Bank of New York: "It is known that the Monetary Commission will in the course of a year or two and perhaps earlier be prepared to report some plan of currency reform which may involve the note issuing powers of the national banks...
...It was given out that the postal savings banks bill demanded by the President and promised in the Republican platform would be passed without further delay...
...This program contemplates a System-controlled, central bank of issue—a central bank to exercise in the future the function of issuing circulating notes which have been issued in the past by the national banks of the country...
...What interests or combination of interests are so exceedingly anxious about this proposition...
...The United States is the only country that can afford bad roads...
...What will be done as to this vast holding in ou-e the power to issue circulation is given over to a central institution...
...It was seen that if the power of issuing notes was turned over to a central bank, the bonds would cease to have their added value for this purpose and would depreciate in value, bringing a heavy loss to the national banks of the country...
...There was a financial panic in the United States in 1907 because of that control and because the money supply of the country was centralized in great financial centers and tied up in financial speculations and promotion...
...This condition of affairs is essential to the success of the Standard Oil methods of finance and business...
...The proviso!—"There's the rub...
...The amendment was defeated...
...This is a question which vitally concerns the Government and the banks...
...STONE OWEN TALIAFERRO ¶It is true that the farmer is a direct beneficiary of the rural free delivery, but it would be far from the mark to assert that he is the only one...
...Under the existing banking laws, and through the operation of the reserve system, the Standard Oil-Morgan banks have virtual control of the money supply of the country...
...Thus the postal savings banks measure, which before had been a thing detested by the Aldrich management, could be made a valuable adjunct of the Aldrich scheme OF CURRENCY "reform...
...So much opposition from the country has developed because of the insistence that postal deposits be kept in the communities where they originate, that it is thought the amendment will fail...
...This was a serious obstacle to the Aldrich currency "reform" program...
...In short, it was realized that the national banks of the country would oppose this scheme, because they own about 75 per cent, of all outstanding government bonds which they have bought largely at a premium, because the ownership of government bonds enables a national bank to issue circulating bank notes...
...Although it will undoubtedly be objectionable from other points of view, its passage would solve in great part a serious and vexing situation...
...The Republican Party in its platform in 1908 pledged itself to the enactment of a postal savings bank law...
...On the last page of this circular is this interesting announcement : "The National City Bank of New York maintains at Washington a bureau ESPECIALLY DEVOTED TO THE INTERESTS OF THE NATIONAL BANKS OF THE COUNTRY...
...The following are the Senators who voted for the Cummins amendment: Republicans: BEVERIDGE CUMMINS BORAH DIXON BROWN DOLLIVER BURKETT GAMBLE CLAPP LA FOLLETTE CRAWFORD McCUMBER Democrats: CHAMBERLAIN SHIVELY CLARK (Ark...
...During the latter part of the last Congress a postal savings bank bill was pending before the Senate...
...This would be in the public interest...
...It was originally proposed, and was very generally understood, that postal savings deposits should be redeposited in banks in the localities where the money was owned...
...From day to day it was laid aside, and finally defeated by dilatory tactics...

Vol. 2 • March 1910 • No. 10


 
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