The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-12-07
Postal Savings Banks.

The second subject worthy OF men,
ton in the postofice department is
the real necessity and entire practical
bility OF establishing postal savings
banks. The successful party at the
last election declared in favor Of postal
savings banks, and, although the prop
osition finds opponents in many parts
Of the country, am convinced that
the people desire such banks and am
sure that when the banks are fur
nished 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 10 prevent their drawing
deposits away from other banks.
l believe them to be necessary in or
der to offer proper inducement to
thrift and saving to a great many peo-
pie 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 sys-
tenn of government guaranty Of de-
posts now being adopted In several
western states which, with Difference
to those who advocate 1t, seems to me
to have In it the seeds Of demoraliza-
ton to conservative banking and GER
tain financial disaster.
The question Of how the money de-
posted in postal savings banks shall
be invested is not free from difficulty,
but / believe that satisfactory pro-
vision for this purpose was inserted as
an amendment to the bill considered
by the senate at its last session. 1t
has been proposed to delay the consid-
GRAFTON of legislation establishing
postal savings bank until after the re-
port of the monetary commission. This
report is likely to be delayed, and prop
erly SO, because Of the necessity for
careful elaboration and close inves-
tigation. l 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. It is
not apparent that a system OF postal
savings banks would in any way inter-
fere with a change to such a system
here. Certainly in most of the coun-
tries in Europe, where control Is thus
exercised by a central authority, postal
savings banks exist and are not
thought to be inconsistent with prop
er financial and banking system.
Ship Subsidy.
Following the course Of my distin-
guished predecessor, earnestly rec
ommend to congress the consideration
and passage Of a ship subsidy bill look
ing to the establishment Of lines be-
tween 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 a
SUFFICIENT measure of the expenditures
which might first be tentatively ap-
piled to this method of inducing Amer
lean capital to undertake the establish
ment of American lines Of steamships
in those directions in which we now
feel it most important that we should
have means of transportation con-
trolled in the interest of the expansion
of our trade. A bill of this character
has ONCE passed the house and more
than once passed the senate. and
hope that at this session bill framed