Omaha daily bee., 1909-08-26
Money Can Be Used in Buying Tive
Per Cent Bonds.
OBJECTS TO GUARANTEE SYSTEM
Executive Restates His Position on
Democratic Proposal.
AIDRICH WILL VISIT BEVERLY
Chairman OF senate Committee and
Secretary MseVeaEh Confer with
Mr. Taft-NaEeI win
Come Again.

BEVERLEY. Mass. Aug. 25.-President
Taft indicated in talks with callers today
thai in his message TO congress next De
cember he will strongly urEe the early
establishment Of postal savings hank
system He will ask that the platform
declaration Of the republican party in IA
vor Of postal banks be fulfilled as speedily
as possible.
President Taft believes that several hun
dred millions Of dollars would be placed
at the disposal OF the government through
postal savings banks. Ii Is suggested that
this money might be weu employed iu TAX
ing up the SsOO OOO.O1O or S7Oo00Oo0 Of gov
ernment per cent bonds which are out
standing and which have given much CON
cern 10 the treasury department officials.
Already the per cent bonds are selling
below par and there is fear Of further de-
probation in view of the 3 per cent issues
which have been authorized and which
coon many be placed on the market The
president believes that the postal banks
would appeal TO those tmid persons who
are afraid to trust TO ordinary banks and
who would rather get the per cent OF
/ less interest which the government woulc
give than TO place the money in the reg.
ular savings banks where II would draw
1 from TO pr cent interest each year
/ BY placing the interest to be allowed by
the postal banks at per cent Mr. Taft
/ is convinced that no harm would be done
| 10 the ordinary banks Of commerce for
/ discriminating persons who now place
! their money in these banks and are ap-
preciative Of what the banks are doing for
the community would not withdraw mo-
ney drawing a high rate and place it un-
/ der government care at half the interest
offered by the ordinary savings banks.
Secretary Meyers Position.
! Secretary Never Of The navy, formerly
postmaster general is strongly In favor OF
postal banks. He has given much thought
and study to the subject and is convinced
OF its Importance TO the government Idle
/ funds would be placed at the disposal Of
the government at an exceedingly low rate
OF interest The governments guarantee.
it is believed would stop the steady flow
of gold across the Atlantic to foreign
banks under government control
President Taft expressed himself again
today as he did so often during the cam
paign Of year ago. as unaltersbly opposed
I TO a guarantee OF hank deposits. Mr.. Taft
said that he did not believe in making one
! set Of bankers stand responsible for another
set and he does rot think that the national
government or the states should undertake
30 extend a guarantee to institutions which
are not under government control and
direction.
Tomorrow after1 oon the president win
I have a conference with Senator Aldrtch,
chairman Of the senate finance committee
and Secretary MacVeagh OF the treasury.
The postal banks will have share In the
discussion.
Secretary Nsgel of the Department OF
= Commerce and Labor is expected between
now and Saturday 10 dispose OF the re-
naming vacancies in the list Of census
supervisors.
President Taft had a long talk today
with Amos P. Wilder. American consul
general a. Shanghai. China, and discussed
with him the opportunities for extending
American trade In that empire. The Chi
nese people were never more friendly dis
posed toward the United States and Mr..
Taft Is impressed with the value OF their
trade