Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-12-07
POST OFFICE DEPART
MENT.

Il
MENT.
The deficit every year in the Post-Ofice
Department is largely caused by the low
rate of postage of l cent a pound charged
on second-c'ass meil matter, which in
cludes not only newspapers but magazines
and miscellaneous periodicals. The actual
loss growing out of the transmission OF
this second-class mail matter at l cent
q pound amounts to about S63. 900 a
year. The average cost OF the transpor-
tation of this matter Is more than cents
a pound.
1t appears that the average distance
over which newspapers are delivered to
their customers is 2a1 miles. while the
average hall OF magazines is 1.O4a and
OF miscellaneous periodicals LIPS miles.
Unequal Cost of Mail.
Thus. the average haul of the magazine
Is three and one-half times and that OF
the miscellaneous periodical nearly four
times the haul of the daily newspaper,
yet all OF them pay the same postage rate
or 1 cent a pound. The statistics OF 1907
show that second-class mail matter con-
stituted 1891 per cent of the weight OF all
the mail. and yielded only 5.19 per cent
of the revenue
The figures given are startling, and
show the payment by the Government OF
an enormous subsidy to the newspapers,
magazines and periodicals and Congress
may well consider whether radical steps
should not be taken to reduce the deficit
In the Post-Ofce Department caused by
this discrepancy between the actual cost
of transportation and the compensation
exacted therefor.
Higher Rate on Magazines.
A great saving might be made. amount
ing to much more than half of the loss.
by imposing upon magazines and periodi-
Gals higher rate of postage. They are
much heavier than newspapers, and con-
tain much higher proportion of adver-
Using to reading matter, and the average
distance of their transportation is three
and half times as great
The total deficit for the last fiscal year
IN the Post ONCE Department amounted
to Ill, 100000. The branches OF its bust
ness which 1t at loss were the SEC
ond-class mail service. in which the loss
as already said was $63.0OO,OUO. and the
Tree rural delivery, In which the loss was
$2sOO0.OO. These losses were in part OFF
set by the profits Of the letter postage
AMI other sources of income. 1t would
seem wise to reduce the loss upon sec
ond-class mail matter, at least to the ex-
tent Of preventing a deficit I'm the total
operations of the post Office.
! commend the whole subject to Con-
gress, not unmindful of the spread of in
teliigence which low charge for carry
ing newspapers and periodicals assists. I
very much doubt however, the wisdom Of
policy which constitutes SO large a SUBJ
sidy and requires additional taxation to
meet IL.
Postal Savings Banks.
The second subject worthy Of mention
in the Post-Of1ce Department is the real
necessity and entire practicability of es-
tablishing postal savings banks The sue
cessful party at the last election declared
In favor of postal savings banks, and al
though the proposition finds opponents in
many parts of the country, l am con-
vinced that the people desire such banks,
and am sure that when the banks are
furnished 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 so
small as to prevent their drawing de-
posts away from other banks.
Inducement to Thrift.
| believe them to be necessary in order
to offer proper inducement to thrift and
saving to a great many people OF small
means who do not now have banking IA
cilities. and to whom such system
would offer an opportunity for the accu-
mutation of capital They will furnish a
satisfactory substitute, based on sound
principle and actual successful trial In
nearly all the countries of the word, for
the system of government guaranty OF
deposits now being adopted In several
western states. which with Difference to
those who advocate Ii seems to me to
have in it the seeds of decentralization TO
conservative banking and certain finan-
cial disaster.
The question Of how the money deposit
ed in postal savings banks shall be In
believe that a satisfactory provision for
this purpose was inserted as an amend
ment to the bill considered by the Sen
ate at it's last session.
No Reason for Delay.
1t has been proposed to delay the con-
sideration of legislation establishing
postal savings bank until after the re-
port Of the monetary commission. This
report is likely to be delayed, and proper
ly so, because of the necessity for care
full deliberation and close investigation
do not see why the one should be tied
up with the other 1t is understood that
the monetary commission has looked into
the systems banking which now pre-
vail abroad, and have found that by a
control there exercised in respect to re-
serves and the rates of exchange by
some central authority, panics are avoid
ed. 1t is not apparent that a system OF
postal savings banks would in any way
interfere with a change to such a sys-
tenn here. Certainly in most of the coun-
tries in Europe where control is thus
exercised by central authority, postal
savings banks exist and are not thought
to be inconsistent with a proper financial
and banking system.
Ship Subsidy Favored.
ed predecessor, I earnestly recommend to
Congress the consideration and passage
of a ship subsidy bill. looking to the
Of lines between our At
alntic seaboard and the eastern coast OF
South America as well as lines from
the west coast Of the United States TO
South America, China. japan and the
The profits on foreign mails
are perhaps a sufficient measure of the
which might first be tenta-
tatively applied to this method of in
ducing American capital to undertake the
of American lines of
steamships in those directions in which
we now feel it most important that we
should have means Of transportation con-
trolled in the interest of the expansion
of our trade. A bill of this character
has once passed the House and more
than once passed the Senate, and I hope
a. F~