The daily sentinel., 1909-12-07
FIRST ANNUAL MESSAGE
OF PRESIDENT TAFT
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year in the posrofice department
amounted to 100000. The
branches of its business which it did
At loss were the second-class mail
service. in which the loss. as already
said, was 63 million dollars, and the
free rural delivery in which the loss
was IS million dollars. These losses
were in part offset by the profits of
the letter postage and other sources
of income. 1t would seem wise to re-
duce the loss upon second-class mail
matter, at least to the extent of pre-
venting a deficit in the total opera
tions of the postoffce department.
Il commend the whole subject to
congress, not unmindful of the spread
of intelligence which low charge for
carrying newspapers and periodicals
assists. very much doubt, however,
the wisdom of a policy which con-
stitutes so large a subsidy and re-
quires additional taxation to meet 1t.
Postal Savings Banks.
The second subject worthy of
mention in the postoffice department
is the real necessity and entire prac-
ticability of establishing postal saw
ings banks. The successful party at
the last election declared in favor of
postal savings banks and although
the proposition finds opponents in
many parts of the country. am con-
vinced that the people desire such
banks. and am sure that when the
banks are furnished they will be pro-
ductiye of the utmost good. The
postal savings banks are not consti-
tuted for the purpose of creating
4 competition with other banks. The
rate of interest upon deposits to
which they would be limited, would
be so small as to prevent their draw
ing deposits away from other banks.
Il believe them to be necessary in
| order to offer proper inducement
10 thrift and saving to a great many
people of small means who do not
now have banking facilities, and to
/, whom such system would offer an
opportunity for the accumulation of
scapital They will furnish a satisfac-
tory substitute, based on sound prin-
Aiple and actual successful trial in
nearly all the countries of the world,
Cor the system of government guar
lnty of deposits now being adopted
n several western states, which with
NJ reference to those who advocate it
seems TO me TO have in 1t the seeds of
generalization to conservative bank
PYlg and certain financial disaster.
THE question of how the money
Weposited in postal savings banks
shall be invested is not free from
Rfficulty, but | believe that a salts
( hctory provision for this purpose
Jas inserted as an amendment to the
I'll considered by the senate at its
st session. 1t has been proposed to
p'ay the consideration of legislation
ablishing postal savings bank
til after the report of the none
4 ,Nry commission This report is like
nv to be delayed, and properly so. be-
.cduse of the necessity for careful de-
4iberation and close investigation.
40 not see why the one should be
add with the other. 1t Is understood
-Nat the monetary commission have
.oked into the systems of banking
linich now prevail abroad and have
und that by a control there exer-
,ed in respect to reserves and the
'ttes of exchange by some central
lkthority panics are avoided. 1t is
VT apparent that system of postal
wings banks would not in any way
Slterfere with n change to such sys-
4 EN- here. Certainly in most of the
,k countries in Europe where control is
hts exercised by central authority,
I, postal savings banks exist and are
i lot thought to be inconsistent with
proper field and banking system.
Ship Subsidy.
Following the course of my dis
II li2guished predecessor. l earnestly
to congress the consid-
IA sration and passage of ship sub
siWy bill. looking to the establish
ment of lines between our Atlantic
.eaboard and the eastern coast OF
South America, as well as lines from
thel west coast of the United States
10 South America. China. Japan and
the Philippines. The profits on for
eigp, mails are perhaps a sufficient
meahure of the expenditures which
might first be tentatively applied to
this method of inducing American
capithl to undertake the establish
ment of American lines of steamships
in these directions in which we now
feel IA most important that we should
have means of TRANSFORMATION con-
rolled in the interest of the expansion
of our trade bill of this char