Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-12-08

the free rural delivery IN whicn the
loss was SOS, 600. O00. - Those losses
were in part offset by the profits
of i, the. letter postage. ana ONE.
sources Of income. II would seern'
wise to- reduce, the loss upon second
class mail matter, at Least to The 'eXks
tent OF preventing q ,defcit IN total
operations Of the postoffice'
POSTAL SAVINGS BANKS.
The second subject worthy of men.
ton in the Post Office Department is
the real necessity and entire practical
bility of establishing postal saving:
banks. The successful party at the
last election declared in favor or pos
tai savings banks, and although the
proposition finds opponents in many
parts of the country, I am convinced
that the people desire such banks, and
am sure that when the banks are fur
nshed they will be productive of the
utmost good. The postal savings banks
are not constituted for the purpose OF
creating competition with other banks
The rate of interest upon deposits to
which they would be limited would be
so small as to prevent their drawing
deposits away from other banks
/ believe them to be necessary In
order to offer proper inducement to
thrift and saving to a great many
people Of small means who do not now
have banking facilities, and to whom
such a system would offer an oppor-
tunity for the accumulation of capital.
They will furnish satisfactory sub
stitute, based on sound principle and
actual successful, trial in nearly all the
countries of the world, for the system
of government guaranty OF deposits
now being adopted in several western
states, which with Difference to those
who advocate it seems to me to have
in it the seeds Of decentralization to
conservative banking and certain H.
nancial disaster.
The question of how the money de-
posted in postal savings banks shall
be invested is not free from difficulty,
but I believe that satisfactory pro-
vision for this purpose was inserted as
an amendment to the bill considered
by the Senate at it's last session. 1t has
been proposed to delay the considera-
ton of legislation establishing postal
savings bank until after the report of
port is likely to be delayed, and prop
erly so, because of the necessity for
careful delberation and close investi-
cation. / do not see why the one
should be tied up with the other. It Is
understood that the Monetary Com
mission have looked into the systems
of banking which now prevail abroad,
and have found that by control
there exercised in respect to reserves
and the rates of exchange by some
central authority panics are avoided.
1t is not apparent that a system OF
postal savings banks would in any
way interfere with a change to such a
system here Certainly in most of the
countries in Europe where control Is
thus exercised by q central authority
postal savings banks exist ard are no.
thought to be inconsistent with prop
er financial ana banking system.
SHIP SUBSIDY.
Following the course of my distin-
guiShcd predecessor, I earnestly rec
ommend to- Congress the consideration
and passage of a ship subsidy BILL
looking to the establishment of lines
between our Atlantic seaboard and the
eastern coast of South America, as
well as lines from the west coast of
the United States to South America,
China. japan, and the Philippines. The
profits on foreign mails are perhaps
sufficient measure of the expenditures
which, might first be tentatively APP
piled to this method of inducing Amer
lean capital to undertake the estab-
iishment OF American lines of steam
ships n those directions in which we
now feel it most important that we
should have means of transportation
controlled in the interest of the eX-
pansion of our trade. A bill Of this
character has once passed the House
and more than once passed the Senate.
and I hope that at this session a bill
framed on the same lines and with the
same purposes may become law.
INTERIOR DEPARTMENT
New Mexico and Arizona.
The successful party in the last cleo
ticn in its national platform declared
in favor of the admission as separate
States of New Mexico and Arizona,
and 1 recommend that legislation APP
propriate to this end be adopted.
in The preparation of the legislation
affecting each Territory to secure de-
liberation in the selection of persons
as members of the convention 10 draft
a constitution for the incoming state,
and [ earnestly advise that such con-
stitution after adoption by the conven-
ton shall be submitted to The people
of the Territory for tieir approval at
an election in which the sole issue shall
be the merits of the proposed constitu-
ton, AID if the constitution is defeat
ed by popular vote means shall be pro-
vidcd in the enabling act for a new
convention and the drafting of Il now
constitution. I think it vital that the
issue as to the merits of the copstitu-
ton should not be mixed up with the
selection of State officers. and that no
election Of state officers shouldfbc had
until after the constitution has been
fully approved and finally settled upon
ALASKA.
With respect to the Territory of AL
aska, | recommend legislation which
shall provide for the appointment by
the President of a governor and also of
an executive council the members of