Omaha daily bee., 1909-09-19
BOOST FOR POSTAL BANKS
Postmaster General Hitchcock Has
Been Gathering Data.
HOW THEY WORK ELSEWHERE
Mr.. Hitchcock VIII Also Recommend
n Parcels Post Law, but This IL
Likely to Meet with strong
Opposition.
Wrom a staff Correspondent.l

rTrom a Staff Correspondent
WARRINGTON. Sept. B.-(Special)-
. ostmaster General Hitchcock will make
a strong presentation to congress at the
coming session in favor OF the establish
ment OF postal savings banks. Mr. Hitch
cock has collated. during his term Of
office, all available information as to the
operation Of the postal savings banks in
foreign countries and these data, without
exception, are substantial arguments in
favor OF the policy Of governmental banks.
While the people Of the United states are
unquestionably the greatest bank deposit
tors in the world there are still hundreds
Of thousands Of American citizens who,
Il Is believed. will welcome a policy which
will enable them 10 deposit their savings
with the guarantee Of the government
behind them. thereby increasing the total
bank holdings and at the same time adding
20 the available cash In the treasury. 1t
is believed, too, that postal savings banks
win check the desire among timld people
TO withdraw their funds from repositories
whenever business conditions become
"panicky,' not only from the government
repositories, but from national and state
Institutions as well. 1t is a we'll known
fact that more than half the bank runs
are caused by the dmid small deposltors
who, becoming frightened over rumors OF
llAaANhllANF lhnAtl W lHt uduhH ana DN
their numbers create a scare which rap
idly spreads. II these small depositors
can feel certain that their funds are safe,
when I'm the care Of the federal govern
ment. they will have no occasion to start
a panic" and as a consequence fewer
runs and their following failures will
result.
John Wanamaker, when postmaster gem
eral, was the first cabinet officer to make
a serious effort to induce congress to
authorize the establishment of postal saw
ings banks. But at that time his chief,
President Harrison, did not show any en-
thusiasm for the plan. On the other hand,
it is understood that President Taft is in
hearty accord with the plans OF the
postmaster general and will back him up
TO the limit OF his power President Taft
has shown that his power, Of persuasion
is very effective upon congress, so that
Mr., Hitchcock's program is likely to be
adopted before the close Of the SlXty-flrst
congress.
Parcels Post Recommendation.
Another change in the postal service
which will probably be advocated by Mr.,
Hitchcock Is not so likely to meet with
congressional endorsement is the parcels
post, The people of the United States are
today in the most peculiar position in re-
EfA@ ~ NNN ~ ~ 80 NaheA4N !
through the malls, While II is possible to
send a twelve-pound package from San
Francisco to London, Berlin or Paris by
malt for s1.44, the same parcel addressed
TO New York or Omaha would not be re-
ceived, and even II 1t should be accepted
the postage would be S1.92. The present
postal laws limit the weight OF a package
Of merchandise to four pounds and tho
postage rate is Is cents per pound on do
nestle matter as compared with y cents
per pound on packages addressed to any
country with which the United States has
a parcels post treaty.
The chief opposition to the enactment OF
a more liberal parcels post law has come
from the express companies, and these or
CARNATIONS are still very active in their
. opposition. But in recent years they have
won to their support a very powerful and
wldespre I'D following, The country store.
keepers have become alarmed at the grow
ing business OF the mail order" houses.
Those concerns have the farms and the
villages In every rural community flooded
with their catalogues, and are constantly
drumming trade through the medium Of
millions OF circulars sent through the malls,
The small merchants are compelled to give
credit to their customers, while the mail
order people sell only for cash in advance.
Naturally the country merchant opposes
any legislation which promises to increase
the facilities OF his powerful city rival and
within the last two or three years he has
Joined with the express companies In a
fight against the proposed parcels post law.
The most active among small storekeepers
are located in Oklahoma, Kansas and Ne
Z braska and It is understood that an or
gRnization has been perfected among them
with "a view TO sending committees to
Washington to plead with the committees
Of the senate and the house and % protest
against a change in the postal laws which
they fear will result in the humiliation
OF their business.