Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1909-12-07
Presidents Annual Mesa e
(Continuel from Page Nine


lover which newspapers are delivered
Z to their customers is 291 miles. while
g the average haul of magazines is
1,049 and of miscellaneous periodicals
II, 12S miles. Thus the average haul
ssof the magazine is three and one-half
times and that of the miscellaneous
eperiodical nearly four times the haul
of the daily newspaper, yet all of
them pay the same postage rate of l
cent a pound. The statistics of 1907
show that second class mail matter
constituted 1891 per cent of the
s-lweight of all the mail and yielded
onIy $40 per cent of the revenue.
The figures given are startling and
show the payment by the government
of an enormous subsidy to the news
< papers, magazines and periodicals.. and
congress may we'll consider whether
radical steps should not be taken to
slreduce the deficit in the postofiice de-
apartment caused by this discrepancy
s3between the actual cost of transporta-
ition and the compensation exacted
therefor
81 A great saving might be made,
amounting to much more than half of
1.-The loss. by imposing upon magazines
and periodicals q higher rate of post
cage. They are much heavier than
s newspapers and contain much high
er proportion of advertising to reading
matter. and the average distance Of
-itheir transportation is three and a
half times as great.
The total deficit for the last fiscal
5yeaF in the postoffice department
amounted to $780, GOO. The branches
of its business which it did at a loss
were the second class mail Service,
In which the loss as already said was
s63, 100000 and the free rural delivery.
In which the loss was $4,000, 600,
4These losses were in part Offset by
the profits of the letter postage and
Z other sources of income. 1t would
fseem wise to reduce the loss upon
esecond class mail matter, at least to
the extent of preventing a deficit "a
gthe total operations of the postomce
& department.
The total deficit for the last nscal
year in the postofice department
amounted to SIT 100000. The branches
(. OF it's business which it did at a loss
were the second class mail service, in
which the loss, as already said. was
$63, 100000, and the free rural delivery,
= in which the loss was S2S,O00,O00.
1Tbese losses were in part Offset by the
z2profts OF letter postage and other
sources of income. 1t would seem
wise to reduce the loss upon second
class mail matter. at least TO the ex-
-Ees,r% &gNNo I
: operations of the postOfhce.
1 commend the whole subject to con
gress. not unmindfuI of the spread of
intelligence which a low charge for
s carrying newspapers and periodicals
assists. I very much doubt, however,
the wisdom of a policy which consti-
tutes so large a subsidy and requires
= additional taxation to meet it.
Postal Savings Banks.
The second subject worthy of men
tion in the postofiice department is
the real necessity and entire practical
biEty of establishing postal savings
banks. The successful party at the
last election declared in favor of postal
q savings banks, and, although the prop
osition finds opponents in many parts
of the country. I am convinced that
= the people desire such banks and am
sure that when the banks are fur
nished they viii be productive of the
utmost coed. The postal savings banks
5 are not constituted for the purpose of
q creating competition with other banks.
The rate OF interest upon deposits TO
which they would be limited would be
so small as TO prevent their drawing
deposits away from other banks.
believe them TO be necessary in or.
4 der to offer a proper 1nduceIaenJ To
thrift and saving to a great many
s people of small means who do not
now have banking facilities and &c
whom such a system would offer an
opportunity for the accumulation Of cap
ital. They will furnish a satisfactory
substitute, based on sound principle
and actual successful trial in nearly
ali the countries Of the world. for the
system Of government guaranty OF
deposits now being adopted in several
western states which. with Difference
TO those who advocate it, seems to me
to have in It the seeds Of demoraliza-
ton to conservative banking and. GER
tain financial disaster.
The question of how the money de
posted in postal savings banks shall
be invested is not free from difficulty
but I believe that a satisfactory pro
vision for this purpose was inserted as
an amendment to the bill considered
by the senate at its last session. II
has been proposed 70 delay the consiI-
Grafton of legislation establishing a
postal savings bank until after the re
port of the monetary commission. This
report is likely to be delayed, and prop
-erly so, because Of the necessity for
careful deliberation and close inves-
tigation. l do not see why the one
should be tied up with the other. 1t
is understood that the monetary com
mission have looked into the systems
of banking which now prevail abroad
and have found that by a control there