The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-01-30
POST OFFICE SAVINGS BANKS.

10 THE EDITOR OF THE HERALD
Your interesting article on the subject OF savings
banks In Saturdays issue attracted nay attention,
and think there was one error In the statement
that all post offices in England are made savings
banks. think the banks are only in connection
with the post ot1ces which have the money order
government savings bank ought TO be adopted IN
this country, as It works well IN England. In TINS
strong for directors and oilcers OF moneyed instiu
lions to use ana lose the money which Is entrusted
so!tneir charge the savings q the humble Glasses
other than government institution. The idea OF
savings banks for the Industrial classes was started
ABOUT the beginllng or the present century. me
first savings bank was Established In TOttenham,
England, 1904, by some benevolent people, and was
was allowed, though for many years this rate was
great drain on the benevcience OF the FOUNDERS. In
1877 these banks had increased in England ana
Wales 10 seventy -four. From 1904 to 1851 the
tngs banks or the United Kingdom increased TO 638.
1851 swaowsd up auarter Of Million 81 hard
earned money. In report OF government com.
mission ION the savings Of the middle and working
matters, such .as Stuart Mill and Belllnder Ken,
expressed decided opinions OF the insecurity OF saw
ings bank deposits. Mr.. Mill when asked Tor any
suggestion on the subject, said 81 think 1t would
be very useful 70 pro vide some scheme to make the
nation responsible for all sums deposited"
Some change or some new system had long been
regarded as absolutely necessary. In 1861 the num-
standing this number, there were less than four
teen counties without any bank at all. So early as
OF Commons to make the money order ONCE at the
Post once available for collecting sums from all parts
OF the kingdom, and transmitting them to central
bank, which should be established in London. At
that time, however, the money order department OF
the Post Oiice mad not arrived the state OF efn
cheney to which 1t subsequently attained and for
THIS or some other equally valid reason the bill was
wltndrawn. In 1860 Mr.. Sykes, or Understood,
existing system Through his practical acquaint-
ance with the old plan he was able to demonstrate
That increased 1aciues for depOslting az any time
and IN convenient places were great desiderata
among the poorer classes The same facilities were
likewise necessary for Withdrawing deposits Mr..
sykes proposed that bank for savings should be
opened at every money order office In the Kingdoms
that each postmaster should be authorized to re-
ceive deposits, and that all the offices should have
immediate connection with General bank IN Lon
don. The general principle OF his scheme was
seen to be useful and practical and 1t was referred
discussion as to the details the simple and COM
prehenslve scheme proposed by Mr.. Gladstone II
1851 was the result, and the bill enacted is
titled IAN act to grant additional facilities for de-
posting small savings ut interest with the security
OF government Tor the due repayment thereof" The
first Post Office banks were established under this
act on the 18th Of September 1851 The extension OF
tine scheme to Ireland and Scotland effected ON
the 81 and nth OF February 1862 respectively Since
many OF the old savings banks have been wound up,
as the former are the most popular. Although the
safety more than Offsets the difference In that
respect.
Among the many advantages Of the government
system over the Old one Is that the whole nation
small places as well as large cltles-have the same
facilities; the hours OF business too cOnve-
nient being the same as the money order Offices de-
as well as the one where they made their deposits;
which is frequently great accommodations and,
above all, the new system fosters independent
habits among the working classes Their dealings
with the Post ONCE banks are pure matters OF bust
The old BANKS on the other hand, partoOx largely OF
the nature offs charity.