The citizen. (Honesdale, Pa.) 1908-1914, 1909-08-27
TAT rs BANK PLAN
President FavOrS Postal
Savings Institutions.
WILL URGE IDEA IN MESSAGE.
He Believes Wage Farmers AND
Others Would Place Hundreds
of Millions of Dollars In
Government Keeping.
WILL URGE IDEA IN MESSAGE

Beverly, Mass, Aug. 2G.-PGcsldent
Taft announces that In his message to
congress next December he will strong
iy urge the early establishment of II
postals savings bank system. The
president realizes that there is strong
opposition to such legislation at this
time, and while he does not propose
to rush congress OH too many matters
at once he will ask that the platform
declaration Of the Republican party in
favor Of postal banks be fulfilled as
speedily as possible.
Influential members Of both the sen
ate and house are urging that the mat
ter 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 subjects
to be dealt with by the monetary COM
mission and the postal banks Is so
close that the two should be handled
together.
President Taft believes that several
hundreds Of millions would be placed
at the disposal of the government by
wage earners and others through
postal savings banks. 1t Is suggested
that this money might well be EN-
ployed in taking up the $G00,OOO,OO0 or
800, 900 of government . per cent
bonds which are outstanding and
which have given much concern to the
treasury department officials. Already
the , per cent bonds are selling be-
low par, and there Is fear of further
depreciation in view of 3 per cent is
sues which have been authorized and
which soon may be placed on the mar
ket.
The money which postal banks
would draw. the president believes,
IS that which is sent abroad each year
10y foreigners who insist that the gov
ernments guarantee shall be back Of
any bank In which they place their
hard earned savings and that which Is
fecreted in stockings and mattresses
and not sent to any bank ut all.
The president believes that the postal
banks would appeal only to those tim
Id persons who are afraid to trust the
ordinary banks and who would rather
get the . per cent or less interest
which the government would give than
to place the money In the regular saw
ings banks, where it would draw from
3 to / per cent interest each year.
BY placing the interest to be allowed
by the postal banks at less than per
cent Mr.. Taft Is convinced that no
harm would be done to the ordinary
banks of commerce. for discriminating
persons who now place their moneys
in these banks and are appreciative Of
what these banks are doing for the
community would not withdraw mon
ey drawing Il high rate and place it
under government care at half the in
terest offered by the ordinary savings
bank.
The money obtained through postal
banks. the president and several of his
closest advisers believe, would Offer Il
most happy solution of the > per cent
bond problem. Secretary Meyer of the
navy and former postmaster general Is
strongly in favor of. postal banks. He
has given much thought and study to
the subject and is convinced of its i'm
portance to the government. Idle
funds would he placed mt the disposal
of the government at an exceedingly
low rate Of interest. The government g
guarantee, it is believed, would dam
the steady flow of gold across the At
lantlc to foreign banks under govern
ment control.
President Taft expressed himself rs
unalterably opposed to Il guarantee of
bank deposits. He said he did not he
lieve in making one set of bankers
stand responsible for another set, and
he does not think that the national
government or the states should under
take to extend guarantee to institu
tions which are not under direct gov
ernment control and direction.
AS to the charge of patcrnalism re-
flectcd in the postal bank idea, PreSi
dent Taft in stating his position, de
clared that he thought it rather far
fetched. He cited the instance Of The
poStofIice department itself and said
that the extension of the postotIict
system to Include field of banking
which is not now covered by private
institutions could not be regarded as ,
too patcrnaliStic step. Mr.. Taft is ;
great believer in the good sense an(
Judgement of the American people
and he has said that they know ful
well where to draw the liue.
The president had Il conference to
day with Senator Aldrich, chairman o.