The Portland daily press., 1873-10-21
Postal Banks and Telegraphs.

auspcious that the future may be contemplated
with unclouded cheerfulness.
t YARMOUTH.
Postal Banks and Telegraphs.
Postmaster-Gen. Creswell made speech in
Baltimore, Friday night in which, among 9TH
er things, he advocated postal savings banks
ana postal telegraph He said:
Severely as the policy of the administration has
been criticised, it is clear beyond all cavil that
the national debt has been paid off with rap
idity unparalleled in history, notwithstanding the
largely reduced taxation, and that the severity
of the late panic has indicated the wisdom Of
the founders OF our present national banking
system. Wherever the arm of the government
has reached, there has been perfect confidence
Not single dollar of the circulation has been
lost or will be lost and out of nearly two thou
sand national banks in the United States, four
only have permanently suspended. Can any
man fail to see what would have been the terri
BILE financial results if note-hoders had been
frenzied by the late panic equally with deposit
tors? The holders Of 1854, 200, 900 of bank bills
were entirely removed from fear of loss by rea-
son of the absolute security afforded by the
Government In fact, the financial paradox
had become familiar to all that the note of
broken bank was better than the note of SOL
vent 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, 1T is held that the matter of
deposits is subject of contract between the in
dividual depostor and the banks, and that if
a bank shall fail to perform its portion of the
contract, the remedy must be sought by the in
diyidual himself. Now, if the depositor can by
any means be made equally safe with the bill
holder, the losses by reason of illtimed and i'll
ventured specuiations will fall upon the stock
holders, who alone, have the power to control
their officers
While would not indiscreetly trench upon
the domain of another department, OF in any
way interfere with the financial or banking OPP
eratiOns of the country, yet believe that the
Government, through the instrumentalty of
the department committed TO my care, can pro-
vide machinery smpla safa.- practical and
thoroughly consonant to our institutions, where
by the great laboring masses of the county will
have the fruit of their toll protected from law
less speculation and guarded with absolute Sc
curity have recommended for two years 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 direction of designated officers in the
bonds of the United States. By this arrange
ment the security of depostors would be based
upon the very foundation stones of the repub-
lie. Nothing short of political chaos, over
throwing the Government and the total de-
struction of all morality and honor among the
people could leopard their interests, so that it
may be sad that they would be absolutely Sc
cure, In times OF panic, the people, instead of
boarding their means, would place them on de-
posit with the Government, to be invested in
Government loans aud then sent again into cir
cuation. Like water, the currency thus fur
nished would flow to the points of lowest de-
preston and tend to correct all arrangement of
the circulation, however caused. Thus the peo-
pie would be served by the security of their in
vestment the Government would be served by
the means placed at its disposal, and the banks
and the capitalists would be served because of
tue tendency to prevent the boarding of the
currency of the country.
am aware that this plan will meet with the
opposition OF some banks and capitalists who
would compel the people to deposit with them
upon their own terms, and thus afford them the
use OF SO much additional capital; but let it be
remembered that am not speaking in the inter-
est of banks or capitalists; 1 am speaking for
the people, who are to be protected, and not in
behalf of the banks, many of whom have re-
Gently given notable instance of the manner
in which they can violate their promise t. pay
But why should the banks complain? In addi-
ton to their chartered privileges the Govern
ment has recently interposed again in their be-
half By the act of June 8, 1872, the banks
were authorized to deposit, for their better Sc
curity, their nited States notes in the National
Treasury, receiving therefor certificates of de-
post which might be counted as part of their
reserve, used for clearinghouse purposes, and
converted at pleasure in the place where de-
posits 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 mil
lions. Why, then, should it not be used with
equal proprety, and to the same extent for the
security of the masses of the people?
There is nothing in the objection that the es-
Enlistment of postal banks would be equva-
lent to the assumption of banking business by
the Government. The rate of interest would be
too low to justify any such complaint. 1t would
not control the active capital of the country; it
would not check reasonable enterprise and
activity; Its offices would be two-fold yet limit
ed. 1t would supply first safe deposit for the
earnings of the people, and also serve as a re-
gulator, to control undue excitement in the
money market. This is no untried project; it is
no longer an experiment Twelve years &C tual
in Great Britain have established its FEAST
bility and success Postal savings banks were
established in the United Kingdom in the wear
1861 andcan now count nearly two millions and
a half of depositors and nearly a hundred mil
lion of depositors.
Conceiving it to be my duty to press nv de-
parthent up to the practical discharge of all its
work, have on former occasions recommended
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, sufficient sum of money
to establish and equip, what deem the great
want o. the age-the postal telegraph. Every
indication points to the success of that great
measure. As the people are entitled to pure wa
ter and pure air upon the best possible terms, so
are they, in NY Judgment, equally entitled to
the best and cheapest modes of communication
and intercourse. No man or set of men have
right arbitrarily to seize upon the air of the
earth, and use it as means of Lowing tribute
upon their fellow-men. believe that the cleo
trio current has been given by God for the BEN
eft of the whole human race. MANY of its
wonders and applications are still locked in
Gods arcana, it is true: but is equally true that
we are fast becoming more familiar with its
manifold uses and purposes. Men have already
been taught SO to apply it in the Transmission
of intelligence that, by comparison, the winds
and the heetiDg hours have become laggards. 1t
is essential to the business of cities, states and
continents 1t has become necessary for COM
mercial, scientific, agricultural, marine, and So
cial development In this age men must act
quickly, and to act quickly, and at the same
time wisely, they must learn quickly, and have
at their command the same means and infor-
nation that are open to others. There should
be no monopoly of intelligence. There should
be no dictatorial power vested in any individu-
al or company to deprive any man of informa-
ton which he may seek, or to suppress any
portion OF the press which may rebel against
the arbitrary demands of any stilted and self
sufficient corporation. Hence say that the
postal savings bank and the postal telegraph
are, liz my estimation, portion of the work yet
to be accomplished by the all achieving Rapub-
lican party in the interest of the people of the
United States. In my estimation, no greater
glory can ever crown the efforts of any man
than to make these measures successful, and
thereby provide system of communicating in
teiiigence so cheap, SO extensive and complete,
tnat IL may in all respects be found worthy of
.ne great American nation, now marching in
the van OF human progress.