Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-10-22
POSTAL BANKS AND TELEGRAPHS.

has been criticised, it is clear beyond all cavil
that the national debt has been paid Off with
rapidity unparalleled in history, notwitEstand-
| ing the largely reduced taxation and that the
severity of the late panic has INDICATED the
wisdom of the founders of our present nation
| al banking system. Wherever the arm Of the
government has reached, there has been per
| feet confidence. Not single dollar OF the
| circulation has been lost, or will be lost, and
! out of nearly two thousand national banks in
the United States, four only have permanent
| ly suspended. Can any man fail to see what
would haye been III" terrible financial results
| If note hugers had been trsnAi4d by the late
panic. equally with depositorS: The holders
of 1854 ,O00, 900 of bank bills were entirely
| removed from fear of loss by reason OF me
absolute security afforded by the government.
/ In fact, the financial paradox had become Ia
mliar to all that the note OF broken bank
was better than the note OF solvent one.
simply because the notes of broken banks
would be eagerly sought by capitalists as a
basis of new banking Institutions. 1t was,
however, not in the power of the Government
| to prevent the failure to pay depositors. As
the law now stands, it is held that the matter
| of deposits is subject of contract between
the individual depositor and the banks, and
that if bank shall fail to perform its portion
| of the contract, the remedy must be sought
by the individual himself, Now, if the de
positor can by any means be made equally
safe with the bill-holder, the losses by reason
of ill timed and ill-ventured speculations vii!
fall upon the stockholders, who alone have
the power to control their officers
| While l would not indiscreetly trench upon
the domain of another department or IN any
wsy interfere with the financial or banking op-
erations of the country. We, believe that the
| Government, through the fundamentally OF
| the department committed to my care, can
provide machinery simple, safe. practical
and thoroughly consonant to our institutions,
whereby the great laboring masses of the
country will have the fruit of their toll pro-
tected from lawless speculation and guarded
with absolute security. l have recommended
for two wears past and still recommend the
establishment of post office savings banks.
By this simple plan every suitable post office
| could be used to receive the deposits OF the
people and transmit them to the Department
| at Washington, to be invested under the Oh
rection of designated officers in the bonds oil
the United States. By this arrangement the
security of depositors would be based upon
the very foundation stones OF the repuohc.
Nothing short of political chaos, overthrow
ing the Government and the total destruction
of all morality and honor among the people
could leonard their interests, so that 1t may
be said that they would be absolutely secure.
: In times of panic. the people, instead OF
, boarding their means, would place them on
deposit with the Government, to be invested
in Government loans and then sent again into
circulation. Like water, the currency mus
furnished would flow to the points OF lowest
depression and tend to correct all derange-
ment of the circulation. however caused
Thus the people would be served by the Sc
curity of their investment, the Government
would be served by the means placed at lis
DISPOSAL, and the banks and the capitalists
would be served because OF the tendency 10
prevent the boarding of the currency OF the
country
l am aware that this plan will meet with
the opposition of some banks and capitalists,
who would compel the people 10 deposit W l''i
them upon their own terms, and thus AFFORD
them the use of so much additional capital;
but let it be remembered that | am not speak
ing in the interest of banks or capitalists; l
am speaking for the people, who are to be
protected, and no. in behalf of the banks,
many of whom have recently given notable
instance of the manner in which they can vio-
late their promise to pay. But why should
the banks complain? In addition to their
chartered privileges the Government has re-
Gently interposed again in their behalf. by
the act of June s, 1872, the banks were au'
thorized to deposit, for their better security,
Treasury, receiving therefor certificates OF
deposit which might be counted as part OF
their reserve, used for clearing house pur-
poses, and converted at pleasure in the place
where deposits were made. Under this Law
the Treasury of the United States has been
used as place of safe deposit for the banks
to the extent of millions. Why, then, should
z it not be used with equal propriety, and to the
e same extent, for the security of the masses OF
v the people?
d There is nothing in the objection that the
v establishment of postal banks would be equiv
e alent to the assumption of banking business
If BY the Government. The rate OF interest
y would be too low to justify any such COM
J. Elaint. 1t would not control the active capt.
e tai of the country; it would not check rea-
lie sonable enterprise and activity; its offices
would be two-fold, yet limited. 1t would
supply first safe deposit for the earnings OF
the people, and also serve as regulator, to
control undue excitement in the money mar
ket. This is no untried project; it is no
longer an experiment. Twelve years actual
use in Great Britain have established its tea-
e sbility and success. Postal savings banks
j. were established in the United Kingdom in
e the year 1861, and can now count nearly two
O millions and a half of depositors and nearly
hundred million of deposits.
: Conceiving it to be my duty to press my
o department up to the practical discharge OF all
y its work, have on former occasions recon-
mended the establishment of postal savings
banks, in order that the people themselves
might have the opportunity of furnishing the
# Government, at a low rate of interest, a suf.
a fcent sum of money to establish and equip,
,f what deem the great want of the age-the
postal telegraph. Every indication points to
J. the success of that great measure. AS the
y people are entitled to pure water and pure air
a upon the best possible terms, 80 are they, in
G. my Judgment, equally entitled to tho best and
. cheapest modes of communication and inter
We course. No man or set of men have a right
ny arbitrarily to seize upon the air of the earth,
m ana use 1t as means Of levying tribute upon
or thelr Iellow-men. ] believe that the.electric
:. current has been given by God for the benefit
III OF the whole human race. Many of its won
nd ders and applications are still locked in Gods
lis arcana, It true; but is &c ally true that
- are fast becoming more familiar with its man.
~ fold uses and purposes Men have alread,
It's been taught so to apply it in the transmission
as of intelligence that, by comparison, the wind
sd and the fleeing hours have become lageards