Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1909-08-26
Pres. Taft Will Urge Their Early
Establishment in Message
TO Congress.
WOULD FULFILL PLEDGES
Relieves They would Furnish Funds
to Take Up the Outstanding Two
Per Cent. Government Bonds
which Now Sell below Par
Would Retain Money.

Beverly, Mass. Aug. 25.-President Taft
indicated in talks with callers to-day
that in his message to Congress next
December he will strongly urge the early
system. The President realizes that
there Is strong opposition to such lcgs-
lation at this time and while he loen not
propose to rush Congress on too many
matters At once. he will nsl that the
platform declaration of the Republican
party in favor of postal banks be full
hod as speedily as possible.
Influential members of both the Senate
and House are urging that the matter be
left over until the monetary commission
has made It's report and ensuing financial
legislation has been disposed Of 1t has
even been said that the relation between
the subjects to be dealt with by the
monetary commission and the postal
banks is so close that the two should be
handled together.
President Taft believes that several
hundreds Of millions would be placed
at the disposal OF the government
through postal savings banks. It is
suggested that this money might we'll
be employed In taking up the $500
100000 or 500, 1000. 900 of government
two per cent. bonds, which are out
standing and which have given much
concern to the treasury department
officials. Already the two per cent.
bonds are selling below par and there
is fear of further depreciation In view
of three per cent. issues which have
1T t,t&
be placed on the market. The money
which postal banks would draw. the
President 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 carmen
savings and that which Is secreted in
stockings and mattresses and not
sent to any bank at all. The Presi-
dent believes that the postal banks
would appeal only 70 those timid per-
sons who are afraid to trust the ordi-
nary banks and who would rather get
the two per cent. or less interest
which the government would Civ"
them TO place the money in the reg
ular savings banks where 1t would
terest each year.
WOULD NOT HARM ORDINARY
BANKS
| By placing the interest to he allowed
| by the postal banks at less than 2 per
| cent. Mr.. Taft is convinced that no harm,
| could be done to the ordinary banks OF
| commerce.
The money obtained through postal
banks, the President and several Of his
closest advisers believe, would offer a
most happy solution Of the 2 per cent
bond problem. Secretary Meyer OF the
navy and former postmaster general, Is
strongly In favor Of postal banks.
Idle funds. would be placed NJ the
disposal Of the government at an ex.
ceedingly low rate OF interest. The
| governments guarantee, II Is believed
would dam the steady flow OF gold across
the Atlantic to foreign banks unde,
| government control.
President Taft expressed himself agar
| to-day. AS he did so often during th'
campaign Of a year ago. as unalterahI'
| opposed to a guarantee Of bank deposits
Mr. Taft said he did not believe in max
| Ing one set Of bankers stand responsible
for another set and he does not thinl
that the national government or tn,
States should undertake % extend
guarantee to institutions which are no
under direct government control anc
direction.
AS to the charge OF paternalism. re-
nected in tho postal bank idea. Pres
ident Taft In stating his position to-
day, declared that he thought 1t rath-
er far-fetched. He cited tho instance
Of the postoffice department itself and
said that the extension OF the post
office to include a field OF banking
which Is not now covered by private
institutions could not be regarded as
a too paternalistic step.
TO CONFER WITH SEN. ALDRICH
Tomorrow afternoon tho President
will have conference with Senator
Aldrich chairman Of the Senate fin-
ance committee. and Secretary Mac
!. Veagh Of tho treasury. The postal
banks will have a share In the discus
sion.
The President has n number OF sub
tects to take up with Mr. Aldrich
First OF all he wants to know when
the monetary commission expects 70
have its report ready for Congress and
tust what will be the scope OF It's In
uuiries and recommendations.
Mr.. Taft also wants the advice o.
Senator Aldrich in connection with ad
ministrative features OF the Payne bill
which are now concerning the treasury
department.
Mr.. Aidrich practically wrote tho en-
tire section Of the tariff bill dealing
with tho maximum and minimum an(
other administrative propositions.
The President will see Ambassador
Whitelaw Reid on Friday.
President Taft to-day had an extended
interview with Amos r. Wilder, Ameri
can consul general at Shanghai. Chinr
and discussed with him the opportuni
! ties for extending American trade II
that vast empire Mr.. Taft believes tina
tie time is ripe Just now to gain 9
great advantage for American industrieI