, 1873-11-25

Tho annual report OF tho EostmaHtef-tenefa1
contains less than the usual amount Of matter |
on the subject Of postal telegraphs, Iii. ores-
wells attention having boon diverted by new
toy, viz, postal-savings banks. The Poss-offlco
banking systom. as he o1pounda 1t, is ono Of tho
curiosities Of modern times, for Whereas the
postal-ssyinga banks Of Great Britain must bo
supposed to have dofnite purpose, and to oper-
ato'in cortnin way, Mr. Croswell noitheE tcih
what that purpose and way nro, nor
what his purpose and way would DO
il his views wore carried into cffoot. We hayc
observed certain amount OF CONFUSION Of ideas
in the reports and recommendations of tue
Treasury Department in times past, but nothing
approaching to that which peryades the banking
yiogs of tho Postmaster General. Ho tells ua
that on tho first Of July last there was aomo six
hundred millions Of currency in the hands Of
the people Chat Ia, outside Of the banks and tho
Public Treasury, but noyerthelcss, soon aftor
the first OF August, atringonoy sot in,
| which must hayo been due to luck OF
| confidence. Lack OF confidence in what2
Mr.. Croswell doos not say, but tho
| context implies that It was lack OF confidence
in banks, because ho Gays that il We can devise
q plan that will afford tho samo security to de-
poaitors that Ia afforded to notoholdors, woshall
DO ablo to bring out the aix hundred millions Of
hoarded currency and revive buRinoss. Postal
savings banks, he thinks, would accomplish this.
| Thcao institutions would encourage economy
and habits Of saving, and utilize and keep In
circulation tho immense sums now paid out as
wagos. 1t would at tho aamo time strengthen
tho Treasury and onablo it, "by judiolous ILL.,
Ycstments," to afford roliof to banka in timaB Of
Btringonoy. Savings banka should mover DO
made SOURCES OF profit. It proHtituted to pur-
poses Of gain, they should DO ogorthrown. 30
likewise other banka should only do business on
their own capital. When they sock to do busi-
moss Oh borrowed capital, la. deposits, they
become nero spooulators. Sound policy
dlotatoa that the Government should 1oBo no
opportunity Of borrowing from it's oTn people.
at low rate interest, for the purpose Of "d'B-
charging m indebtedness abroad" OF relieving
Industry and enterprise at homo from
tho trammels of taxation Ho bologoa
that the savings Of tho people thus encouraged
would aoon grow to such gigantic proportions
that tho voluntary loanB Of single generation
would soon oxccod tho whole OF tho national
debt. The ratio OF intereHt proposed to DO paid
to dopoaitora by the postal-sayings banka is
per cont.
II ia evident from tho report TINT Mr. ctes'
vol regards capital and currency as tho sarae
thing. Financial stringonoy, in hia view, meant
hoaralug OF currency and ho bolloyos that cur
ronoy would not bo boarded 1t thero wero plont,
OF poatal.Hnyings bankH. 1t would 10 eaBy tt
, point out many porlods OF fnhncia
atrngonoy whore thoro was no hoard
ing OF currency indeed, tho supposed
boarding Of currency at the prosont time ia yor,
much Exaggerated. But no lot that pass, AZ alst
r tha singular notion that bankers should d
, buainssa exclusively Oh their own capital. ami
, that savings banks should mover yield apy profit