The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1909-12-14
MESSAGE
Continued from Page six.)

| (COQtlQueu from rage SIX.
banks are furnished they will be pro-
ductive of the utmost good. The
postal savings banks are not consti-
tuted for the purpose of creating COM
petition 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.
l 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 don't now
have banking facilities, and to whom
such a system would offer an oppor-
tunity for the accumulation of CAPT
Ital They will furnished a 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 sew
eral wetsern tsates which with de-
ference to those who advocate it
seems to me to have in it the seeds
of generalization to conservative
banking and certain financial disas-
ter.
The question of how the money
deposited in postal savings banks
shall be invested is not free from
difficulty, but believe that satls-
factory provision for this purpose
was inserted as an amendment to
the bill considered by the Senate az
its last session. 1t has been pro
1osed to delay the consideration OF
LEGISLATION establishing a postal saw
ings bank until after the report OF
the monetary commission. This re-
port Is likely to be delayed, and pro-
perly so, because of the necessity lOr
careful deliberation and close inves-
tigation. / don't see why the one
should be tied up with the other. IL
is understood that the monetary con-
mission has looked into the systems
of banking which now prevail abroa
aud have found nat by control
: there exercised in respect to reser-
: yes and the rates of exchange by
some central authority, panics are
avoided. 1t is not apparent that
, system ofpostal savings banks would
in any way interfere with a change
to such system here. Certainly in
most of the countries in Europe
where control is thus exercised by a
controlling inconsistent with pro-
Der financial and banking system.
SHIP SUBSIDY.
Following the course of my distin-
guished predecessor, l earnestly rec
ommend to Congress the considera'
ton and passage Of ship subsidy
bill, looking TO the establishment OF
lines between our Atlantic seaboard
. and the eastern coast of South AM
erica, as we'll as lines from the west
. coast of the United States to SouG.-
America, China, Japan and the Phil
ippines. The profits on foreign mails
ere perhaps a sufficient measure OF
the expenditures which might first
be tentatively applied to this method
of inducing American capital to un-
dertake the establishment of Amerl'
can lines of steamships in those di-
3 rections In which We now feel it most
:. important that we should have
I means of transportation CONTROLLED
in the interest of expansion of our
trade. A bill Of this character has
once passed the house and more than
once passed the Senate and.I hope
that at this session a bill framed on
the same lines and with the same
purposes may become law.
ALASKA.
With respect to the territory of
: Alaska. 1 recommend legislation
which shall provide for the appoint
ment by the President of a COVER
nor and also of an executive council,
the members of which shall during
2 their term of offices reside in the
! territory and which shall have ex-
ecutive powers sufficient to enable it
to give to the territory local laws
adapted to it's present growth.
strongly deprecate legislation look
ing to the election OF territorial
Legislature in that vast district. The
lack of permanence OIL residence of a
large Lart of the present population
and the small number of the people
who either permanently or Temporal
{. rily reside in the district as COM
pared with its vast expanse and the
variety OF the interests that have
: to be subserved, make it altogether
G uniting, in my judgment, to pro-
: vide for popular election of legis-
{ lative body. The present system is
G not adequate and does not furnish