The Irish standard., 1909-08-28
PRESIDENTS BILLET TO CON.
GREss WILL ADVOCATE Es- II
ADJUSTMENT OF SYSTEM. Il
TO SOLVE 2 P. C. BOND PROBLEM
Will Swell Treasury and Do Away
With Mattress Banks-Opposed
to Bank Deposit Guarantee Ss
DerIdes PaternalIsm. s

Beverly, Mass, Aug. 26-Presidente
Taft is indicating to callers that in II
his message to congress next Decem-
Der he will strongly urge the early es.
Enlistment of postal savings bank
system. The president realizes that
there is strong opposition to such leg
islation 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 the
postal banks be fulfilled as speedily
as possible.
ate 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 SUBJ
jects to be dealt with by the none
tary commission and the post banks
h 80 close that the two should be
handled together. ST.
President Taft believes that several
hundreds of millions would be placed
at the disposal of the government
through postal savings banks. It was
suggested that this money might bo
employed in taking up the $600,000,000
or $700,O00,0OO of government Q per
cent bonds, which are outstanding,
and which have given much concern
to the treasury officials. Already the
2 per cent bonds are selling below
par, and there is fear Of further de-
probation in view of the per cent
Issues which have been authorized,
and which soon may be placed on the
market. IA
The money which the postal banks
would draw, the president believes, 10
that which Is sent abroad each year
by foreigners who insist that the gov
ernments guarantee shall be back of
any bank in which they place their
savings and that which is secreted in
stockings and mattresses and not
sent to any bank ut ALL The presi-
dent believes that the postal banks
would appeal only to those timid per-
sons who are afraid to trust their
money in ordinary banks and who
would rather get the 2 per cent or less
interest, which the government would
give them to place the money in .
regular savings bank where it would
draw from to per cent interest
The money obtained through postal
banks, the president and several Of
his closest advisers believe. would
offer most happy solution Of tho
per cent bond problem. Secretary
Meyer, formerly postmaster general,
is strongly in favor of the postal
banks. The governments guarantee,
it is believed, would check the steady
flow of gold across the Atlantic to for.
eign banks under government control.
Opposed to Bank Guarantee.
President Taft expressed himself
again as he did SO often during the
campaign of a year ago, as unalter.
ably opposed to guarantee of bank
deposits. Mr.. Taft said that he did
not believe In making one set of bank
ers stand responsible for another set,
and he does not think that the ma
tional government or the states should
undertake to extend guarantee to
institutions which are not under d.
rect or government control and direc-
ton.
AS to the charge of paternalism, re-
flected in the postal bank idea, Presi-
dent Taft in stating his position to
golfers declared that he thought 1t
rather far-fetched.