Los Angeles herald., 1907-11-03

TO great extent boarding its Hurplus
earnings. 1he immigrants reach the
United Htaton suspicious OF any private
banking institution but with absolute
faith IN tho government. We have evil
denoe OF thlu IN tho fact that they are
buying postal money orders payable to
Themselves Our object is 10 bring hid
don money to light, TO inHtlll life Into II,
and 10 lead Il again Into the channels
OF trade. for the mutual benefit OF labor
and capital, and thus add to the pros
perlty throughout the land,
Furthermore, we should encourage the
foreigner to deposit his earnings, because
after he has accumulated few hundred
dollars he will not be content to receive
merely a 2 per cent interest, but will
seek to purchase homo; and the mo-
ment he acquires real property in this
country he becomes better citizen. Is
mere actively interested In the affairs
OF the nation and at the same time places
himself ,end his dependents beyond like
lihoo6 OF becoming public charges.
1t Is proposed to bring this money into
circulation by asking authority from
congress to place the deposits In the ma
tional banks Of the country, not in
few financial centers, but in the banks
of the district where the money has been
deposited. 1 have been assured by prom
inent presidents of national banks that
the postoffice department may count on
receiving for such money turned over
to them rate of interest varying from
2 to per cent. The department would
guarantee the depositor per cent, or 1
per cent semi-annually. Thus evidence
is given to the savings banks that we
are not in competition with them and
that our business would in nowise affect
their deposits, their rates being usually
from 40 pei cent. The amount of
money in the United States is estimated
to be $3123, ,056,673, of which 81. .010, 100000
is In the banks and $3.50, 053 in the
treasury; the balance, 81 77S5O1, $40, being
in the hands of individuals and other
sources This last amount seems large
at first glance, but when we think or
the wages that people are earning today,
and that If each person in the country
had in his possession $40 In cash $780,
100000 would be accounted for, or about
half the amount.
1t will be the policy of the department
also to simplify in every way the registry
and money order systems, so that less
time may be consumed in registering
letters and obtaining money orders.
/ find that there is a great demand
from the public for postal notes, and
it is the purpose of tn, department to
recommend such paper in denominations
of 10 cents, 20 cents, % cents, 30 cents, 40
cents, so cents, 60 cents, 70 cents, so cents,
80 cents, 81 and up to $780, 1t is the
intention to have the ,tes payable to
the party designated. A small fee will
be charged, but time will be saved. as
no advices are to be sent. From l cent
to 9 cents the notes will be made payable
to bearer and no fee will be charged.
Tests of stamp-vending machines will
be begun this month, and If the machines
are satisfactory they will be adopted
as they. should prove convenient to the
public in facilitating the sale of stamps
At the end of the calendar years COM
plete information will be obtained rela-
tive to the cost of transporting the vari-
Gus classes of mail matter and the
amount of mail matter which is franked,
and the quantity handled for each of the
various departments, congress having ap-
propriated 100000 for the weighing of
the mails for that purpose. Thus, for
the first time in the history of the post
office department it will be possible to
figure intelligently the actual cost to the
government of handling the mails. and
I believe the data SO obtained will tend
t. show (when we taken into considera-
ton the cost of transporting mail mat
ter for the different departments of the
government that very largo portion of
the deficit would be wiped out if such
free matter were properly charged on the
books.
Gentlemen, in brief way have today
called to your attention some of the chief
which the department
will present to congress. I wish to con-
gratulate the convention upon its meet
ing and to assure you of the pleasure
1t has given me in having this oppor-
tunity to meet the postmasters. and
now wish the members of the New Eng
land Postmasters' association success in
their organization, as I feel and know
that such organizations have been es-
tablished for the best interests of the
postal service.