The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1909-12-08

tue loW rate OF postage OF ] cent A
pound charged ON second class mail
matter. which includes not only news.
papers, but magazines and mIsceIa.
neous periodicals. The actual loss grow
ing out of the transmission Of this
second class mail matter at cent a
pound amounts to about S63000,OO0 u
year. The average cost of the trans.
portation of this matter is more than
8 cents pound. s.
1t appears that the average distance
over which newspapers are delivered
to their customers Is 291 miles, while
the average haul of magazines liz
1,049 and Of miscellaneous periodicals
1,12S miles. Thus the average haul
Of the magazine - three and pne,half
tmes land thataof the miscellaneous
periodical nearly four times the haul
Of the daily newspaper. yet all Of
them pay the same postage rate OF
cent pound. The statistics OF 1907
show that second class mail matter
constituted 1891 per cent OF the
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 news
papers, magazines and periodicals. and
congress may well consider whether
radical steps should not be taken to
reduce the deficit In the postotliee de-
partment caused by this discrepancy
between the actual cost Of transporta-
ton and the compensation exacted
therefor.
A great saving might be made.
amounting to much more than half of
the loss, by imposing upon magazines
and periodicals higher rate OF post
age, They are much heavier than
newspapers and contain much high
er proportion Of advertising TO reading
matter and the average distance rot
their transportation IL three and
half times as great. t7 saw
: The total deficit for the last fiscal
year In the postotiice department
amounted to Sl7.5O0,OO0. The branches
Of Its business which 1t did 40 losY
were the second class mail service. La
which the loss, as already said.s was
$63. 100000. and the free rural delivery.
in which the loss was $4,000, 900
These losses were In part offset by the
profits OF letter postage and other
sources OF income. It would seem
wise to reduce the loss upon second
class mail matter. at least to the ex-
tent OF preventing deficit In the total
operations Of the postotiice.
commend the whole subject to con
gress, not unmindful of the spread Of
intelligence which a low charge for
carrying newspapers and periodicals
assists very much doubt, however,
the wisdom of policy which consti-
tutes so large subsidy and requires
additional taxation to meet It,
Postal Savings Banks.
The second subject worthy OF men
tion In the postofiice department. ID
the real necessity and entire practical
bility Of establishing postal savings
banks. The successful party at the
last election declared in favor Of postal
kavings banks. and. although the prop
osition finds opponents In many parts
OF the country. ! am convinced that
the people desire such banks and nm
sure that when the banks are fur
nlshed 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 10
which they would be limited would be
80 small rs to prevent their drawing
deposits away from other banks.
believe them to be necessary In or
to offer proper Involvement to
tnrift and saving to great many
people Of small means who do not
now have banking facilities and to
whom such system would offer nm
for the accumulation Of cap. |
ftal. 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 IT, seems to me
TO have In it the seeds Of demofaliza.
tIon to conservative banking and Ger.
tain financial disaster.
The question of how the money de-
posted 10 postal savings banks shall
be Invested Is not free from difficulty,
but 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. Il
has been proposed to delay the consid,
Grafton Of legislation establishing a
postal savings bank uftil after the re-
port Of the monetary commissions This
report Is likely to be delayed. and prop
erly SO, because Of the necessity for
careful elaboration aud close inves-
LEGATION. ! 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
II banking which now prevail abroad
md have found that by control there
exercised In respect to reserves aud
he rates OF exchange by some central
authority panics are avoided. ~ 1t IL
Tot apparent that system Of postal
'avings banks would in any way inter-
ere with change to such system