Omaha daily bee., 1909-12-08

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the short time In which they may remain
effective.
Antitrust Law.
The Jurisdiction Of the general govern
ment over interstate has led TO
the passage Of the so-called sherman
antitrust law" ard the Interstate COM
merce law" and its amendments. The de-
~velopment in the operation OF those laws.
as shown by Indictments. trials. judicial
decisions and other sources OF informa-
issuing Of ul-advised orders Of Injunction
without notice and viii render such orders
ton. call for a discussion and some sug-
g~estions as to amendments. These I pre-
fer TO embody in a special message instead
Of including them in the present communal
cation. and shall avail myself OF the first
convenient opportunity to bring these sub-
5ects to the attention Of congress.
Postal Savings Banks.
The deficit every year IN the Postoffios
department Is largely eaused By the low
rate Of postage Of 1 cent a pound charged
on ~second-class mail matter. which in
Guides not only newspapers but magazines
and miscellaneous periodicals. The actual
loss growing out Of the transmission Of
this second-class mail matter at 1 cent 4
pound amounts 70 about sslO0.Ooo a year
The average cost OF the transportation Of
this matter is more tha 3 cents a pound.
1t appears that the average distance over
which newspapers are delivered to their
customers is 81 miles, while the average
haul Of magazines Is L049, and OF miscel-
laneous periodicals LIPS miles. Thus. the
average haul Of the magazine is three and
one-half times and that Of the miscel-
laneous periodical nearly four times the
haul Of the daily newspaper. yet all OF
them pay the same postage rate OF l cent
a pound The statistics OF 1907 show that
~second-class mail matter constituted s.. 81
per cent Of the weight OF all the mail. and
yielded only SIS per cent Of the revenue.
A great saving might be made. amount
ing to much more than half Of the loss
by imposing upon magazines and periodicals.
a higher rate Of postage. They are much
heavier than newspapers and contain a
much higher proportion Of advertising 10
reading matter. and the average distance
OF their transportation is three and a half
times as great.
1 the whole subject to con-
gress' not unmindful OF the spread Of intel
hgence which a low charge for carrying
newspapers and periodicals assists. very
nuch doubt however, the wisdom Of a
pollcy which constitutes so large a subsidy
ana requires additional taxation to meet II.
Postal Revenue Deficit.
The second subject worthy Of mention
IN the Postoffice department is the real
necessity and entire practicabnity of estab-
fishing postal savings banks. The success
ful party at the last election declared in
] favor Of unaTa1 e-Nf--- 49,
though the proposition finds opponents in
many Tarts OF the country, 1 am con-
WINGED that the people desire such banks.
and am sure that when the banks are fur
nished they will be productive of the ut
most 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 deposits away from
other banks.
1 believe them to be necessary in order
TO offer a proper inducement to thrift and
saving TO a great many people Of small
means who do not now have banking facut-
ties, and to whom such a system would
offer an opportunity for the accumulation
of capital. They will furnish a satisfac-
tory substitute, based on sound princlpie
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 ad-
vocate it seems to me to have in II the
seeds OF demoralization to conservative
banking and certain financial disaster.
Delay Not Necessary.
TTNa -avau~F1n - -
IN postal savings banks shall be invested
5 not free from difficulty. but beiiev,
that a satisfactory provision for this pur.
pose was inserted as an amendment 1,
the bill considered by the senate at il.
asst session. II has been proposed TO de.
lay the consideration OF legislation estab.
fishing a postal savings bank until after tn,
report OF the monetary commission. Thi,
report is likely to be delayed. and prop
erly so, because OF the necessity for care
tut elaboration and close investigation
1 do not see why the one should be tie,
up with the other. Il is understood tina
the monetary commission have looked int.
the system OF banking which now pre-
vail abroad, and have found that by
control there exercised In respect to re
serves and the rates of exchange by SOM
central-authOrity panics are avoided. 1
is not apparent that a system Of posta
savings banks would in any way inter
fere with a change to such a system here
Certainly in most Of the countries il
Europe where control Is thus exercised b,
a central authority, postal savings bank
exist and are not thought to be incon
sistent with a proper financial and bankin
! system.
I ship Subsidy Bill.
Following the course Of my distingl
h ished predecessor, I earnestly
k TO congress the consideration and passas
OF a ship subsidy bill, looking to Il
establishment OF lines between our A
Iantic seaboard and the eastern coast
south America, as well as lines from Il
vest coast OF the United States to Soul
America, China. Japan and the Philippine