The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1909-08-27
POSTAL SAVINGS
BANESFIND FAVORIR
PRESIDENTS EYES
WILL RECOMMEND THEIR EsTAB.
LlSHMENT IN NEXT
MESSAGE
MEMBERS ARE URGING DELAY
Believes That Several Hundred Mil
lions Would BE Placed at Disposal
Of The GoVernment-couLd Take
Up Bonds.

BEVERLY. Mass, Aug. 26.-Presi.
dent Taft indicated in talks with cali
ers Wednesday that in his message to
Congress next December he will
strongly urge the establishment of a
postal savings bank system. The
President realizes that there is strong
opposition to such legislation at this
time, and while he does not propose
to rush Congress on too many matters
at once, he will ask that the platform
declaration of the Republican party in
favor of postal banks be fulfilled as
speedily as possible.
Influential members of both the Sen
ate and House are urging that the
matter be left over until the Monetary
Commission has made its 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 Com
mission and the postal banks is so
close that the two should be handled
together.
President Taft believes that several
hundred OF millions would be placed
at the disposal of the Government
through postal savings banks 1t is
suggested that this money might well
be employed in taking up the $780,
600 900 or $500, 100000 of Government
2 per cent bonds which are outstand-
ing and which have given much con-
Germ to the Treasury Department Off
Gals. Already these bonds are selling
below par and there is fear of further
depreciation in view of the per cent
issues which have been authorized,
and which soon may be placed on the
market The money which postal
banks would draw, the President be-
lieves, is that which is sent abroad
each year by foreigners who insist
hat the Governments guarantee shall
be back of any bank in which they
place their hard-earned savings, and
hat which is secreted in stockings
and mattresses and not sent to any
1ank at ALL The President believes
hat the postal banks would appeal
strongly to those timid persons wis
ire afraid to trust the ordinary banks
md who would rather get the 2 per
,ent or less interest which the Cow
would give than to place the
money in the regular savings banks
where it would draw from to per
ent interest each year.
By placing the interest to be al
owed by the postal banks at less than
per cent, Mr.. Taft is convinced that
o harm would be done to the ordi-
airy banks of commerce, for discrimi-
ating persons who now place their
honey in these banks and are appre-
iative of what these banks are doing
DR. the community would not with
raw money drawing high rate and
lace it under Government care at
alf the interest offered by the ordi-
airy savings banks.
The money obtained through postal
anks, the President and several of
Is closest advisers believe, would Of
r happy solution of the per cent
md problem. Idle funds would be
aced at the disposal of the Govern
ent at an exceedingly low rate of
terest. The Governments guarantee,
is believed, would dam the steady
wv of gold across the Atlantic to
reign banks under Government con-
o.
President Taft expressed himself
ain, as he did so often during the
mpaign of a year ago, as unalter-
ly opposed to guarantee of bank
posits. He said he did not believe
making one set of bankers stand
sponsible for another set, and he
es not think the national Govern
INT or the States should undertake
extend a guarantee to institutions
Itch are now under Government con-
u and direction.
As to the charge OF paternallsm re-
cted in the postal bank idea, Presi-.
ut Taft, in stating his position, de-
red he thought 1t rather farfetched.
cited the instance of the Postofics
partment itself, and said the extern
n of the postoffice system to include
1eld OF banking which is not now
'ered by private institutions could
be regarded as too paternalistic
p.