The San Francisco call., 1897-12-12
Z. S. DEPARTMENT OF AGRICULTURE
OFFICE OF ROAD INQUIRY,
WAsHINGToN, D. O.. December 2, 18g

DEAR SIR: 1 send you herewith copy OF
The annual report OF the Hon. James A. Gary,
Postmaster-GeneralO of the United States, and
beg leave 10 ask your especial attention TO his
exposition OF the advantages and feasibility OF
establishing the postal savings system in this
country. l send you also copy of my letter 20
him on behalf OF the National League for
Good Roads, written before his report came
in my hands.
Upon further consideration OF the subject I
am convinced that this project, carried out in
the direction indicated il my letter, opens the
way We have so long sought for the i'm prove
ment Of the highways on national scale and
a way inde pendent OF direct national aid ,
vEicn, however wise and proper. could only
be secured alter bitter contest; a way, more
over, requiring no increase of local taxation.
The only obs tacie to the posial savings plan
Is The difficulty OF finding proper investmen S
for the funds deposited. The Government
having taken the peoples money and agreed
20 pay interest on il, must lend it somewhere
IN oTuer 10 MAKE mat interest. Il would be
especially unfortunate if having taken the
money OF country districts where il is scarce
~ best, the Government should carry il to
the money centerS to invest.
Inc ideal operation would be one which,
while drawing the money out of lis hiding
places or 1dleuess in the rural districts and
making II earn IN terest Jor its owners, Shou Id
put IL actively work in the same districts
earning money 20 reimburse the Government
and at me same time adding wealth to the
region through public improvements The
proposed investment in county bonds issued
solely Tor road improvement and with the
proceeds expended under sufficient Govern
ment supervision would meet these conditions
il the highest degree.
In view of the perfect security offered and
OF the great pubic benefits TO accrue the Gov
eminent cou4d well ford to incur the small
add! !loAaI expense OF handling these funds
anu loan the money at the same rare of inter
est Tint II pays to the owner. Suppose he
rate 10 be 212 per cent the interest on the
bonds coulu easily be taken from the ordinary
road funds of the county, ana as the coun ty
roads would need no repairs during the co IL
srucuon years the road tax could either be
lessened Tor the time or applied to the i'm.
prove ment OF local roads. Some counties Oi
course. would be too conservative to accept
TINS pan, but there would be enough read :
ana willing 10 take advantage OF it TO show It's
benefits and ultimately lead TO its adoption
For this purpose lonG-term bonds would be
more desira bic than short ones and payment
would not be required in less than lOO
need be made in reference to the principal ex
cspt that the county should have the privilege
of payment after thirty or fifty years
This matter Is of such Importance as to de-
serve the careful study OF the friends of good
roads and | shall be greatly pleased to have
your views and suggestions regarding it, and
II you consider IL favOra bly, to have your rec
concentrations as 10 the best methods OF ad
VanclnP the whole project. Very truly yours
Roy STONE,
Roads,
The letter to Postmaster Gary is a:
follows:
NOVEMBER 80, 1897.
Hon. James a. Gary, Postmaster GeneroE-M1
DEAR SIR: You are credited bI the press with
being strongly in favor of a system of pos ia
saving repositories, but some of the writers
raise difficulties about the investment of the
deposits. l venture, therefore, to make the
suggestion that no better possible investment
could be had than In county bonds issued fol
road building. Such bonds are the very safest
OF ives tments, since their avails, properly ap
Piled to'road improve ement, will vas tly increase
n fxy Hr
bonds thus multiply their own security
1t seems TO me that the two schemes-post Ia
savings and road building-naturally 90 to
gether and support each other.
One great advantage of this arrangement
would be that the money deposited in country
districts would come back into circulation
there, forming an endless chain" OF benefits
fur her advantage. from the road -buildin 6
point OF view, would be that the poor nc
sparsely settled counties would get their road
money at as low rate OF in teTest as those
which are rich and populous.
The Government could be further secured
by the STA e's guaranty of the bonds, by III
own supervision OF The road building aud. j
necessary, by the Stale couferring upon it In,
right TO collect tolls on the road in case of de
fault in payment OF interest or principal.
shall be glad to go more inlo deIails in thi,
matter II 1t proves TO possess any interest 10
you. Very respectfully yours. Roy STONE,
Acting President National League for Coco
ROaus.