The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-12-21
TIE SAvIl!GS Back QUESTION.
Proposed Introduction Of Postal Banks-Advan-
of the System in America-Reforms in the
Existing Savings Eankz-The Post
master Generals Suggestions.


TO Congress on the 4th inst. aud endorsed by the
President IN his Message, recommends the adoption
Of the system OF Post ONCE savings banks. winch
has worked 80 well IN Great Britain during the last
ten years. The Postmaster Generals report shows
that alter only ten years. working, the deposits III
the hands OF the Post once Department IN Great
lrtaln nave reached the enormous sum OF nearly
fifteen ana \ half millions OF pounds ster-
hug, or more than seventy five millions OF
dollars OF our money. TINS immense amount,
viewed in connection with the steady annual IN
crease. both IN deposits and III the number OF de-
posItors IN the comparatively short period OF time
during which the system has been operation In
Great Britain. is OF itself most emphatic voucher
for the perfect satisfaction which It's adoption In
this country would afford.
Let 1t not ne forgotten that by far the larger
portion Of all the deposits placed In the numerous
savings banks throughout Great Britain are really
and truly ''savngs," in the strc;est sense OF the
term literally scraped and pnched out oil the small
earnings OF artisans little storeKeepers, domestic
servants and the humber classes OF the community
generally. Especially 40 the .'post office savings
bank" deposits there represent the little hoardngs
which are set by "lor rainy day" out OF his daily
pittance by
The LABoRING MAN,
the slender provision which s 10 be religi0usly pre-
served against the hour when "the wolf may be
coming " his door, fhe acquisition OF interest IL
not the object winch these classes have IN view
much az absolute safety and immediate easy Access
siblty TO the deposit when the necessity arrives for
its withdrawal
To estimate the popularity OF the system in Great
Britain II must be also in mind that the enor
nous amount above mentioned Is formed OF depos
It's limited to u far smaller sum In each Individual
case than that which may be deposited in the pri.
vate savings banks they also are In their turn,
limited to the receipt OF sums from each deposition
which IN tins country where the amounts deposited
SO large, would appear comparatively insignlr-
cant.
II Congress decides upon the adoption OF the
system here there seems to be cogent reason for
the limitation Of the amount OF each individual
deposit 10 anything like the figure ar winch 1t Is
fixed in Great Britain or indeed for Its limitation
lii amount az all. In that respect
THE ENGLISH SYSTEM IL DEFECTIVE
1t is, no douDt, founded upon that class subser-
vlency winch, IN spite OF the onward march or
reform, sO largely enters into consideration there.
There Ia no necessity in TACT, whether there or
here, for any limitation Whatever IN the amount or
Investment OF tnoe strict savIngs''-tnose thrifty,
nard-won hOardings which have been advcrted 20
WSu never extend into any very large
individual amounts. although undoubtedly they
%oua lar sss i4 run e ao 20 'e Tree
with the Post ONCE Department IN England, be-
cause our iaporing ppu alton, artisans and others.
vestors, lar better OF than the same classes IN
Eng anu, and could with comparative ease deposit
anu fought Tor IN the hard daily battle lie. the
amounts VI each deposit therefore, IT. Tie system oe
adopted In this country, need not ne limited To u
small, fixed sum, but the community should be let
at liberty to deposit Win the United Sa'es govern
ment IN the hands OF the Postal department Just as
much as their thrift ami wise provision Tor the iu-
lure may enable and induce them 10 invests no
class interests should bc peri ted 10 interfere with
thus operation, as ihey DO IN England. There,
in Difference, IL would seem, 70 The
powsrai JOINT !, stock a banks when en-, allow aSv
toners, the government appears to be fearful OF
withholding from taem the investment VI sums
when but Tor the limitation of amount already re-
ferred TO would naturally and vita "A just prefer
ence be deposited with the Post once department
When his matter comes up Tor DEBATE before Con-
gress be hoped The
Postmaster for the Institution Of Post Once
savings banks Ia this country viii be heartily and
generously supported ny all parties, without any
improper and unworthy suDseruency to class inter-
ests such as hose Of the national banks already
too much avOre,) Or OF the prIvale savings banks.
II these are not brought up In opposition to The
Postmaster Generals recommendation 1t seems
that no plausible argument even, and certainly
solid one, can De urged against The Introduction
OF the system into THIS country. Nay, 1t would ap-
pear TO be unansW cradle that
THE BEST INTERESTS OF THE POORER CLASSES
demand II, and tina, the postal department Is now
In so efficient u State as to render Its Immediate
ADOPTION easily practicable. IN the numerous rural
districts, d:sla ant from towns and villages where
savings BANKS are located, there IS at present no
conveniently accessible means Tor the safe deposit
VI the savings OIL the community, and hev are con-
est but exposed TO depreciation ana loss. 10 such
districts ana throughout our whole Va territory.
whether III city or country the post once savings
BANK; would be oil immense benefit ana ut this
time especially, when confidence IN The. existlng
private savings banks mas been so Justly shaken by
The failure Vi certain oil them IN tins CITY, and atten
ton mas boon drawn To their ordinary mode OF oper-
atlrls III the Investment Of their deposited funds,
ana to the facilities which the existing system
affords iof their unwise ii not Illegal appropriation.
lii this connection ~ VIII not 90 out OF place 10
shed upon the darkness in which, to tue general
rays OF light. They converge upon the following
points OF apparent defect ana danger In tue system
OF our present savings banks.
First, there woulI seem to DC now
No PERFECT SECURITY
TO the deposltors because the trustees OF these In
situations DO not appear 20 be personally responsi.
be Tor the lunds Next, tpe mode OF investment
SAFE and leg tmate character OF D nj and mortgage
on real es,a.el Gals Tor especial attention and
present practiced by tho banks. Inc invest
ment OF the deposits in any other form Of
converslole Without loss on sudden emergency Is
to I've deprecated ana 1t ~ very well worth consld
Grafton whether their investments should not be
rest rlcicd 10 government securities AZ IL the case
in Great Britain Inc large rate OF interest gwen
by the banks IL fraught WIN mischief rms large
rate OF interest leads directly 10 insecurity. IL
lmulaes the cupidlty oil the dep0sitor and so daz-
zles him with The b 20 OF profit that y binds h,m
large gam In the way OF interest ana OF compound
interest Itne latter terrible temptation 10 the de-
posltor and D heavy incuDls OH the oankl makes
him, even IL aware or the unsaeW, reckless
about II. 10 amend this state OF things and
TO aba;e the rusn OF the smaller class
OF depuslt5-tnose nude by the poor-intO inc
"safes" OIL he savings banks let the government,
when the proposed Post Onlce banks are cstab-
llsned-ior established they must and Will Dc-giyc
10 the depostors IN them rate o, interest very lit
tie Less tnon the annua. average rate realiZable on
government securities.
THR EAPENsE or WORKING THE SYSTEM
through tue postal department would be really so
trning tnar the government could well afford 10 do
80; and then the working classes, while they de-
the fullest possible reward for their THRIFT and
sell-deuiai, would obtain nat absolute security Tor
their money waicn they. thau any other classes
OF the community deserve and have the greatest
right TO expect.
Afterwards let us have the private savings bank
system put upon difierent and better footing
altogether ny The action VI the Legislature. Let
lower rate OF interest tnan tue present one Of six
per cent per annum be fixed by STATUTE, 50 that
there may be proper margin between II and the
rate when tine investments Oh the bank yield. Let
the mole OF investment be either altogether, or, to
great extent, restricted to government securities
readily convertible on an emergency. Make the