The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1909-08-26
WILL URGE LEGISLATION ON SUB
JECT m HIS NEXT MES
SAGE.
REALIZES OPPOSITION
And viii Not Rush Congress on Many
Matters -- Secretary Meyer is
Strong For Postal Savings
~ Banks.

Beverly, Mass, Aug. 25.-President
TAFT indicated in his talks with his
callers today that In his message to
congress netX December he will strong
ly urge the early establishment of a
postal savings bank system. The
president realizes that there is strong
opposition to such legislation at this
time and while he does not propose
to rush congress on too many matters
at once, he will ask that the platform
declaration of the Republican party in
favor of postal banks be fulfilled as
speedily as possible
Influential members of both the sen
ate and house are urging that the mat
ter be LETT over until the monetary
commission has made its report and the
ensuing financial legislation has been
that the relation between the subjects
10 be dealt with by the monetary-com-
mission and the postal banks is so
close that the two should be handled
together.
Taft believes that several hundreds
OF millions would be placed at the dis
posal Of the government through the
postal savings banks. 1t is suggested
this money might well be employed in
taking up the $500, 600 900 or $780,
100000 of government two per cent
bonds, which are outstanding, and
which have given much concern to the
treasury department officials. AL
ready the two per cent bonds are sell
ing below par and there is fear OF fur
ther depreciation in view of the 3 per
cent issues which have been author
lied and which may soon be placed on
the market. The money which the pos
believes, is that which is sent abroad
each year by foreigners who insist
that the governments guarantee shall
be back of any bank in which they
place their hard earned savings, and
that which is secreted in stockings and
mattresses and not sent to any bank
at all. The president believes the
postal banks would appeal only to
those timid persons who are afraid to
trust the ordinary banks and who
would rather get the two per cent, or
tess, interest. which the government
would give than to place the money in
a regular savings bank where it would
draw to per cent interest each year
BY placing the interest to be allow
ed by the postal banks at less than 2
per cent Taft is convinced that ~
harm would be done the ordinary
banks of commerce, for discriminating
persons who now place their money in
the banks and are appreciative of
what these banks are doing for the
community would not withdraw their |
money drawing a high rate of inter
est and place it under the government |
care at half the rate of interest offer ,
ed by the ordinary savings banks.
The money obtained through the
postal banks, the president and sever |
al OF his closest advisers believe, |
would offer most happy solution OF
the 2 per cent bond problem. Secretary
Meyer strongly fayors the postal .
banks. He has given much thought !
and study to the subject and is con
vinced of its importance to the gov ,
ernment Idle funds would be placed
at the disposal of the government at
an exceedingly low rate OF interest I
The governments guarantee, 1t is be-
lieved. would dam the steady flow of
gold across the Atlantic to foreign .
banks under government control.
President Taft expressed himself
again today as he did so often during /
the campaign of year ago, as unal- |
terably opposed to the guarantee of !
bank deposits Taft said he did not |
believe in making one set of bank |
ers stand responsible for another set, |
and he does not think the national
government or states should under |
take to extend the guarantee to in