Weekly journal-miner., 1909-12-08

all of the countries of the world to sys- tenn of government guaranty of de- pOsits now being adopted in severai western states, which with deferenee to those who advocate it seems to me to have in it the seeds of demor- alization to conservative banking and certain financial disaster.
 The question of how the money deposited in postal banks shall be in- vested is not free from difficulty but I believe that a satisfactory provi- sion for this purpose was inserted as an amendment to the bill con sidered by the senate at its last ses- sion. It has been proposed to delay the consideration of legislation estab- fishing a postal savings bank until after the report of the monetary commission. This report is likely to be delayed, and properly so, because of the necessity for careful delibera- tion and close investigation. I do not see why the one should be tied up with the other. It is understood that the monetary commission has looked into the systems of banking which now prevail abroad and has found that by a control there exer- cised in respect to revenues 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 in- terfere with a change to such a sys- tenn here. Certainly in most of the countries of Europe where control is thus exercised by a central authority, postal savings banks exist and are not thought to be inconsistent with proper financial and banking system.
 Ship Subsidy.
 Following the course of my dis tinguished predecessor, l earnestly recommend to congress the eOnsidera- tiOn and passage of a ship subsidy bill, looking to the establishment of lines between our Atlantic seabOard and the eastern coast of South Amer lea. as well as lines from the west coast of the United States to South America, China, Japan and the Phil ippines. The profits on foreign mails are perhaps a sufficient measure of the expenditures which might first be tentatively applied to this meth cd of inducing American capital to undertake the establishment of Amer ican lines of steamships in those directions which we now feel it mos- important that we should have means of transportation controlled 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 I hope that at this session a bill framed on the same lines and with the sam purposes may become a law.
 Statehood Recommended.
 The successful party in the last election in its national platform de- elared in favor of the admission as separate States of New Mexico and Arizona and I recommend that legislation appropriate to this end be adopted. I urge, however, that care be exercised in the preparation of the legislation affecting each ter ritory to secure deliberation in the selection of persons as members of the convention to draft a eOnstitu- tion for the incoming states and l earnestly advise that such legisla tion after adoption by the eOnven- tion shall be submitted to the people | of the territory for their approval [ at an election in which the sole issue | shall be the merits of the proposed | and if the constitution is defeated by popular vote, means shall be provided in the enabling act | for a new convention and the draft ing of a new constitution. think it vital that the issue as to the merits of the constitution should not be mixed up with the selection of state officers and that no election of after the constitution had been fully approved and finally settled upon.
 Alaska.
 With respect to the territory of Alaska. I recommend a legislation which shall provide for the appoint nent by the president of a governor md also of an executive council, the number of which shall during their erm of office reside in the territory, md which shall have legislative pow ITS sufficient to enable it to give to he territory local laws adapted to , ts present growth. I strongly dep NNAbN AN SAoAeNAbh AbbhAAS lO lHC GlCN- ] ion of a territorial legislature in ] hat vast district The lack of per [ nanence of residence of a large part f if the present population and the mall number of the people who eith- ' r permanently of temporarily reside n the district as compared with its t ast expanse and the variety of the I interests that have to be subserved : lake it altogether uniting in my judgment to provide for a popular lection of a legislative body. The resent system is not adequate and Oes not furnish the character of peal control that ought to be there [, he only compromise, it seems to me, E mich may give needed local legisla- 2 ion and secure a conservative gov 2 is the one I propose. V Conservation of National Resources In several departments there is W resented the necessity for legisla- on looking to the further eOnserva- JU on Of our national raSOurcaS apd fba z,