The San Francisco call., 1897-10-10

him. Otherwise it would be imposs BILE
for the Government 10 pay interest on
deposits and the inducements to save
would be removed.
at is therefore necessary, in forming
plans for the esta tablishment of the sys-
tenn, to take into consideration the possi-
bllity OF there being no Government
bonds upon the market and the necessity
OF faccepting other securities. The system,
II 1t be established, should tie based upon
such perfect plans that it will be perma-
nent institution, not to be affected by the
changes which may occur in the country's
Indebtedness during the next quarter Of
century, and 1t seems TO me that at the
very outset provision should be made for
its continuation after the national debt
has been paid whether that occurs within
the next twenty-five years or within the
next century. am therefore in consider
able doubt as to just what course should
be recommended with regard 10 the in
vostment of the funds.
! Congress might specify that certain
State or city bonds known to be abso-
luteiy secure could be substituted for
Government bonds, placing certain dis
cretionary power in the hands of the
proper officials TO ascertain the character
OF he securities and to select those which
upon investigation are thought to be most
reliable. This IS merely suggestion, and
speak OF it only 20 show the character OF
the questions that arise IN connection
with the subject, all of them requiring the
most careful consideration before plans
can be perfected.
afHOwRv - pcnfipuad tho
General, none of the obstacles which
have so far presented themselves are in
surmounta5le, and have no doubt that
before Congress assemblies l will have pre-
pared plan which will he feasible and
certain Of success. Already men in all
parts of the country are interesting them
selves in the proposition and l am in
daily receipt of suggestions, some OF them
valuable and some of them absurd and
worthless. 1 expect, however, to secure
nuca useful information in this manner,
and am thankful Tor every suggestion
made.
The more interest the public takes in
the matter, the more likely we are to ar
rive at proper conclusion. and there is
no one who has any knowledge of the SUBJ
iect, or has views regarding it, that 1 will
not be glad TO hear from. Plans for the
actual operation of the banks can be
easily determined after the basic prin-
ciples of the system have been decided
upon. The actual acceptance of deposits,
giving receipts and keeping the accounts
is a mere matter OF detail differing very
little from the other detail work of the
department.
"Concerning the matter of interest paw
ments, am of the opinion that no inter-
est should be paid on deposits for shorter
time than six months. As the banks, If
established, are to be savings banks, the
encourae ment of deposits for a less period
than that would hardly be contem plated.
The postal banks would not DO a general
banking business and those who wish TO
make deposits for the purpose of checking
out their money i'm mmediately would not be
expected to come 10 us.
1.-THE whole matter Is still in embryo.
l have not settled any of the questions
presented in my own mind, and 1 will
consider very carefully every suggestion
made before l attempt to reach positive
conclusions"
In conclusion the Postmaster. General
said he would treat the matter ex-
haustively in his Forthcoming report and
he would endeavor to secure favorable
recommendation from the President in
his message to Congress.
C. c. CARLTON