The Montgomery advertiser., 1909-08-26
TAFT FAVORS POSTAL BANK Will Urge Early Estab-
 liShment. LEADERS ASK FOR DELAY Want Other Financial Legislation
 Enacted. President Thinks Postal Savings Bank system wouId Solve Prehlem
 of Government Bonds
 Now outstanding..

Beverly Mass, Aug. 25.-President today that in his message to Congress next December. he will strongly urge the early establishment of ipostais savings bank system. The President realizes that there is strong opposf- ton to such legislation at this time. and while he does not propose to rush Congress On too many matters at once. he will ask that the platform declarn~ tion of the Republican party in favor of postal banks be fulfilled as speed- fly as possible.
 Influential members of both the Senate and House are urging that the matter be left over until the monetary commission has made it's report ana ensuing financial legislation has been disposed of. It has even been said that the relation between the subjects to be dealt with by the monetary com-a mission and the postal banks ia so close that the two should be handled together.
 President Taft believes tbat several hundreds of millions ofl dollars would be placed at the dispitai of the Gov ernment through postal savings banks It is suggested that this money might well be employed in taking up the s600, 100000 or s700,o00, 900 of Govern- ment per cent bonds which are out standing, and which have given much concern to the Treasury Department officials. Already the per cent bonds are selling below par. and there te fear of further depreciation in view of the per cent issues which have been Au- thorized and which soon may be placed on the market.
 Banks Not Harmed.
 By placing the interest to be allowed by the postal banks at less than per cent Mir. Taft Is convinced that no harm would be done to the ordinary banks of commerce, for discriminating persons who now place their money in these banks and arc apprecfatiys of what these banks are doing for the community, would not withdraw money and place it under Government care nt half the interest offered by the or dinary savings banks.
 President raft expressed hinistik again today, as he did 90 often during the campaign of year ago. as unalter- ably opposed to a guarantee of bank deposits. MT. Taft said he did not be- lfeve in making any set Of bankers stand responsible for another set, and he does not think the national gov ernment or the states should under- take to extend a guarnatee to. institu- tions which are not under Government control and direction.
 As to the charge of paternalism re flected in the postal bank idea. PreEi~ dent Taft, in stating his position to- day declared he thought 1t rather fer fetched. He cited the instance of the post office department itself and said the extension of the post office system to include a field of banking which is not now covered by private institu- tions, could not be regarded as too paternalistic step.
 Tomorrow afternoon the President will have e conference with Senator Aldrich. chairman of the Senate finance committed and Secretary MacVeagh of the treasury. The postal banks will have a share in the discussion.
 The President has q number of sub jects to take up with MT. Adrich. First of all he wants to know when the monetary commission expects to have its report ready for Congress and just what will be the scope Of its inquiries and recommendations. MT. Taft also wants the advice of Senator Aldrich in connection with administrative features of the Payne bill. which are now giving concern to the treasury department Mir. Aidrich practically wrote the entire section of the tariff bill dealing with the maximum and minimum and other administrative provisions. Secretary Nagei of the Department of Commerce and Labor. Is expected between now and Saturday to dispose of the remaining vacancies on the lise of census supervisors.