4,2

POSTAL  SAVINGS

proposed  legislation,  because  it  would  present  a
purpose  on  the  part  of  Congress  to  gather  these
earnings  from  the  people  and  put  them  in  such  a
position  that  the  Government  can  call  upon  them
whenever  it  has  real  need.” 28
Senator  Bailey  admitted  that  the  proposed
amendment  might  make  it  possible  for  the  court
to  hold  the  bill  constitutional,  but  he  declared  that
“it  would  still  be  none  the  less  unconstitutional,
according  to  the  conscience  of  every  Senator,  because ­
  we  all  know  that  its  purpose  is  not  to  borrow ­
  money,  and  to  incorporate  such  a  provision
in  it  would  be  a  palpable  subterfuge  invented  to
deny  the  court  the  right  to  consider  the  bill  according ­
  to  its  real  purpose.” 29
The  Smoot  amendment  passed  the  Senate;  but
its  further  consideration  here  is  unnecessary  because ­
  of  the  radical  changes  in  the  investment
provisions  of  the  bill  which  were  made  in  the
House.  By  these  changes  the  bill,  which  soon
became  law,  was  greatly  strengthened  in  its  constitutional ­
  position,  under  the  clause  conferring
upon  Congress  the  power  to  borrow  money  on
the  credit  of  the  United  States.  It  was  strengthened, ­
  however,  at  the  expense  of  that  other  feature ­
  which  so  many  believed  essential  to  a  satis-28
  Cong.  Rec.,  Mar.  4,  1910,  p.  2761.
29  Ibid.,  Mar.  3,  1910,  p.  2688.