Los Angeles herald., 1910-02-13

determined with some degree OF ac-
curacy the difference between the cost
of producing articles abroad and the
cost of producing them in this country
Great Difficulty
The great difficulty in the hearing
and discussion of the present tariff blil
was the absence of satisfactory ana
i credible evidence on either side of the
| issues as. to lower high tariffs. The
| importer on the one hand and the man
ufacturer on the other were present 10
| give their fallible judgments aHected
! bv their own pecuniary interests as 10
! the facts under investigation. Men
who were struggling to find the truth
were greatly perplexed by the conflict
/ ing testimony.
The tariff bill authorizes the presi-
| dent to expend $4,000 in employing
persons to assist him and the govern
ment in administering the tariff law. >
/ | have construed this TO mean that
may use the board appointed undef
J This power not only to look INTO tIle
I foreign tariffs but also to examine the
ouestion with respect to each item IN
| ou. tariff bill what the cost of pro-
| d11ctiou of the merchandise Is, ana
/ what the cost is abroad. This Is not an
easy task for impartial experts, ana II
requires large force. L expect 10 70
| apply to congress this year for SZoV,Voo
to organize a force through which TINS
investigation may go on and the re-
slIts be recorded for the use OF the
executive and congress when they de-
sire TO avail themselves of the record.
In this way, any subsequent feNlsloh
NAV be carried on with the ald OF udld
secured officially and without regard
to- it's argumentatiVe effect upon tue
question of raising or lowering dulles.
not hesitate to repeat that the Repup-
1icen marty has substantially complied
with IFS promise in respect to the tarlll
and that it has set itself strongly III
the right direction toward lower tariILs
and furnished the means by WHICH
such lower tariffs can properly anu
safely be fixed.
May Take Two Years
An Investigation by the tariff board
of +he sort proposed will certainly take
a. full two years or more. Meant ::
fine operation of the present tarilL
PROMISES to be consistent with tn9
nrosneritv of the country and with the
furnishing of sufficient tunds WIZ
which to meet the very heaVy puI
necessary expenditures OF carrying oH
our great government. ,a.e,r,
The Republican national piatlo'iii
contained the following:
1--WE favor the establishment or
postal savings bank system for the
convenience of the people ana the eli
couragement of thrift.
A hin has been introduced to estab-
lish a postal savings bank. The great
difficulty in the bill seems TO nave oeeh
to make proper provision for its n'dn-
agement and investment OF the money
deposited. ost,1
savings bank is the encouragement 10
thrift of those whose fears of the SOL
vency of any depository except Il gov
ernment depository tempts them away
from saving. A government promise TO
repay seems to be specially effective III
leading people to save and deposit thelr
savings.
The machinery of the postoffiee de-
partment, with its $4,000 post1hlces
and 10000 money order ofnces, olLets al.
economic and far-reaching machinery
in places remote from banks ana
among people who fear banks, Whlcn,
| but for this opportunity, would NOT
! save but spend The low interest OIL
fered. that of 2 per cent, prevents such
postal savings banks from interfering
with regular savings banks, whose
rate of interest always is in excess OF
2 per cent.
bill there have been inserted amend
ments drawn apparently for the pur-
nose of having money deposited as
savings in government postoh1ces aus
tributed through the locality where II
has been deposited in the state ana
national banks and so deposited as to
make it impossible for the trustees OF
the fund appropriated under the law
to withdraw money for investment IN
any other form.
Would Defeat Law
I regard such an amendment as like
ly to defeat the law. First, because
it takes away a feature which ought
to be present in the law to insure
it's constitutionality If the law pro
vided that the trustees to be appointed
under the law for the funds thus de-
posited could meet the financial exi-
gencies of the government by purchase
or redemption of the government per
cent and other bonds, the measure
would certainly be within the federal
| power because the postal banks would
! then be an instrument of the national
government in borrowing money.
We have now about $700,000,0OO of 2
per cent bonds with respect to Whlch
| we owe duty to the owners TO see
| that those bonds may be taken care of
:
thereof because they were forced on
national banks at this low rate in order
that the banks might have a basis of
circulation This implied obligation of
/ the government, the postal savings
bank funds, would easily enable it to
I meet.
If the funds are to be arbitrarily de-
posted in all banks, state and national,
without national supervision over the
20 nd mic fn come.
it is difficult to see how the government
could meet its obligations to it's postal
savings bank depositors, because with
every bank suspending payments the
funds of the postal savings banks
would be beyond the control of the
/ government and we should have a
financial disaster greater than any
panic we have heretofore met. A pro-
vision that when the money is not
needed to invest in government bonds
or to redeem the same 1t may be de-
posted in national banks in the neigh
! borhood of the place of deposit will
avoid the great danger of q panic and
will strengthen a banking system which
is an arm of the federal government.
/ sincerely hope that before the meas
ure is hammered into it's final shape 1t
may take on these characteristics.
which shall give it constitutional
/ validity and sound financial strength
and usefulness. Those who insist on
the elimination of these two necessary
! characteristics features of the bill will
| put the party in the position where it
cannot hope to escape the charge that
it is not in good faith in seeking the
7 passage of a postal savings bank act,
4 and is not seeking therefore to comply
with the promise of the Republican
platform in that regard.