The Richmond palladium and sun-telegram., 1909-12-07

$63. .OoO.O GOO. and the free rural delivery.
in which the loss was 900.
These losses were In part Offset by the
profits 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-
tent of preventing a deficit in the total
operations OF the postofiice.
l commend the whole subject to con-
greSs. not unmindful Of the spread Of
intelligence which a low charge for
carrying newspapers and periodicals
assists. l 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 postoffice department is
the real necessity aud entire practical
bil.ty Of establishing postal savings
| banks. The successful party at the
| last election declared in favor Of postal
| savings banks. and. although the prop
| osition finds opponents in many parts
of the country. l am convinced that
| the people desire such banks and am
sure that when the banks are fur
nished they will be productive Of the
utmost good. The postal savings banks
| are not constituted for the purpose of
creating competition with other banks.
The rate Of interest upon deposits to
which they would be limited would be
/ 30, hi 1v..,~ -s,,.v
deposits away from other banks.
| believe them to be necessary in or
der to offer proper inducement to
thrift and saving to great many
people of small means who do not
now have banking facilities and to
whom such a system would offer an
opportunity for the accumulation of cap
ital. They will furnish satisfactory
substitute, based on sound principle
and actual successful trial in nearly
all 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 1t, 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
vision for this purpose was inserted as
an amendment to the bill considered
by the senate at its last session. II
has been proposed to delay the consid
Grafton Of legislation establishing q
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 fol
careful deliberation and close inves
tigation. l do not see why the one
should be tied up with the other. II
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
exercised in respect to reserves ani
the rates Of exchange by some centra
authority panics are avoided. 1t 1.
not apparent that a system Of posta
savings banks would In any way inter
fere with change to such a system
here. Certainly in most Of the coun
tries in Europe, where control is thu!
exercised by central authority, posta
savings banks exist and are not though
to be inconsistent with a proper finan
cial and banking system.
Ship Subsidy.
: Following the course of nv distin
guished predecessor, l earnestly rec
ommend to congress the consideration
and passage of ship subsidy bill look
: ing to the establishment of lines be
tween our Atlantic seaboard and tn
eastern coast Of South America n
well as lines from the west coast O
the United States to South America
China, Japan and the Philippines. Th
profits on foreign mails are perhaps
: sufficient measure of the expenditure
which might first be tentatively ap
piled to this method of inducing Amer
ican capital to undertake the establish
ment of American lines Of steamship
: in those directions in which We nov
: feel it most important that We shoul'
have means of transportation cor
: trolled in the interest Of the expansion
Of our trade. A bill of this characte
!. has once passed the house and NOR
l
hope that at this session a bill frame
on the same lines and with the sam
purposes may become law.
interior Department-New Mexico an
, Arizona.
The successful party in the last elet
: ton in its national platform declare
in favor OF the admission as separat
a states Of New Mexico and Arizons
= and l recommend that legislation al
> propriate to this end be adopted.
urge. however. that care be exercise
in the preparation Of the legislation al
> fecting each territory to secure delil
= Grafton in the selection of persons 3
members Of the convention to draft
, constitution for the incoming stat
= and ! earnestly advis that such col
stitutiOD after adoption by the CONVEX
{ ton shall be submitted to the people q
the territory for their approval at q
election in which the sole issue sha
be the merits of the proposed const
tuition, and If the constitution is d,
u feated by popular vote means shall b
provided in the enabling act for a ne'
convention and the drafting Of ne'
II constitution. think it vital that tn
I issue as to the merits Of the constitl
1 ton should not be mixed up with th
. selection Of state officers and that u
r election of state officers should be ha