National Republican., 1873-11-22
MR.. CRFSWELES REPORT,
tcorfinued from Second Pucs.,

(Corfinued nom Second Pugs.)
faith Of the United States. 10 my reports for
sna %9ss aS ss % 81
once saylngs Banks" The name was not well
chosen. The institutions have In view aud re.
commend are not designed, aud should not he
permitted, TO encruach upon the legitimate
powers and duties Of the national banks. They
are totally distinct from the banks In their
scope and character, In the machinery they en-
compllsh, and mag be more accurately desig.
na,en A. postal savings depositories Of the UNI
The financial din,cuyaes in which the country
continue 70 oppress II, have demonstrated the
necessity for some means OF maintaining conf
dence IN times Of threatened disaster, and Of
wealth scattered among the ncople, 10 prevent
panic and escape the ruin which Inevitably fol-
lows n its track. That the people Of the United
lltlcal power clearly appears from the following
tables, taken from tho public debt statements,
reports OF the national banks, and from oficial
Two tables are appended, showing "the
amount of Treasury notes Of ali kinds, Including
fractional, In the Treasury, In the national banks
snm ana u "a NO h nands o. the public, on Juno 30,
'national bank notes held by the banks and tho
public on June 30, 1892 10 Tf-T2 and "a"
On she se!h oi June last the public held, inle-
The @ amount nq sos %ss
sidered sufIicient for all business purposoa, In
the month Of August following . ttrinscncy
Ssssn Ssys Y Ss ast N ,se and
the banks suspending aud declaring their ina
olllty TO pay United States notes or bank notes,
oI even fractional currency, 70 their depositors.
could not continue TO make their usual discounts
for the accommodation OF their customers. This
can only be accounted for upon the theory Of q
raj s.fs a ~ "a.
people, and q consequent refusal TO deposit or
invest OF even pay out In discharge Of obliga.
tons the currency held BY them. 10 meet this
nase 81 e n saa TO
been suggestcd-one Involving an expansion Of
the currency. another compelling . return TO
specie payment, and still another providing for
the issue by the Government OF q convertible
bond a. low rate Of interest-but all open to
objections more or less serious. The opinion Ia
universal that II there could be general restora-
let loose an ample circulation for the entire
country. II, therefore, Q plan can be devised
that will afford to depostors equal security 10
that afforded 70 note-holders, but little doubt
csn be entertained that . general ameioration
Of the present condition viii bc effected.
The immense sum OF 500, 900, 900 held by the
people In June last, win the large accesslons
Treasury and the banks, will be brought out
from Us places Of concealment and applied TO
lts legitimate work OF aiding In forwarding our
ofopo huu pFUiuCb tO tnhFkot AMI In nustAintnQ
our vast manufacturing and other business 10.
tercsu. In my Judgment, Q system OF postal
sayinRs-depositories would powerfully cou-
tribute to this most desirable consummatlon.
throughout the plan for their organization and
work two ideas predominate; nrsL the United
states is 10 Insure the safe return OF principal
and interest whenever demanded; and, secondly,
se N nss sS.snsvs .n s,,Ss 2, The posce L. g
great mass OF the people. The details would be
simple, safe, aud efncicnt. Money.order oiIloes,
as agents OF the Government, would receive dc.
upward TO the limit liked by law, which sums
the postmaster would forward at short interval,
to the nearest depository Of the United States
NJ o aSs aas ne
ately to the depostor by the postmaster, and
notice thereof would he sent either 70 the DO
partment or some establlshed branch once, ts
and . more formal acknowledgment forwarded
70 the deposltOr for the amount. No depositb
| should be allowed In any one year 10 deposi
exceeding $500 no greater accumulation OF dc
than $1,000 and no greater accumulation Of de
posits and interest should be allowed than 81 100
Meantime, however, the United States shoul,
contract to pay interest not exceeding pc
cent, TO be computed from the irst day OF In
| month following the deposit and TO stop upo,
the nrst day OF the month In which any with
drawsi might Dc made. Interest should be com
not drawn, should be added 70 the principal. i
would, OF course, bo necessary TO keep an exac
account OF all such deposits, and OF the expense
i incident TO the management thereof, In III
Treasury Department; also TO make provisio
| for the payment OF the amounts due depositor
| whenever and wherever they might desire i
Withdraw them; aud to allow and credit TO sue
accumulations somewhat greater rate OF IL
terest than that paid dcpositorr, so that all es
penses might be paid out OF the fund and tho In
stitution male sclfsustaining. ! am connion
that the plan Of operations thus general
sketched may be so ampliiied and guaried I'M
the people could be efficiently served, and IN
Government saved from all loss or expense.
The great ends TO be attained are, nrst, abse
lute security secondly. The utmost facilities "a
perfect secrecy. A system thus organized an
conducted would not only encourage econom
and habits OF saving on the part Of all who migt
| be 10 the way OF earning small sums OF money
but would tend largely TO utilize and keep
circulation the immense amounts which ar
paid out for wages and 10 business, and civ
eyefy depositor . direct interest 10 the stabilit
national finances by pouring these accunulI
tions into the Treasury, which, In turn, by jud
cious Investments, could Afford to monetary an
banking Institutions the very relief they now :
eagerly seek. Thousands who doubt the u
curity Of the banks aud saving institution
whether private or organized under State law
would oheerfully place their surplus none
ment
The report next presents q tabular statemeu
showing that In seven states OF theUnion the tot
number Of depositors In savings hanks Is s6,, ,so
and the amount Of deposits tSf9, is5, ,aoT. % as 4
evidence Of the benehb likely TO inure TO IN
people and the Government from the establish
ment Of the system, and answers the objection
made TO the proposed installations, as follows:
objection has been made 70 the establlshmen
Of postal savings Repositories upon the groun
that they would interfere with aud overtime,
nit that this objection Is without fouudatiot
| Savings banks were originally established By IN
benevolent and philanthroplc TO provide ssf
places o. deposit for the small savings Of labor
Quoted without hope Of either pront or rewar
1 other than that which comes from the oonsciou,
ness Of doing good. In so far a. they have bee
managers have diSeftss them from their orisin, G
design, and to that extent have abused the cor
ndence reposed In them. Security Is to be sougl
above above All Other considerations, and hence %
Gated from their administration. II Saving
banks are subjected to risks, and prostituted 10
purposes OF gain for their managers, they shoul
tinue 70 be well and probably managed, aud pa
. greater rate OF Interest than that paid by IN
Government, they will In no wise be put to dll
.o ssses ss s.ss will be
| Nor can the national banks raise valid Oh
lection. They are organised TO AFFORD facilltie
| TO the community by ending money on persons
security, dealing In exchange, issuing notes, an
ment, but = temporary custodlans. Banker
should own the capital they employ. When the
attempt 70 do buatness on borrowed capital the
| arc operating on fictitious credit and becom
mere specuistors. II they succeed In reailEln
more interest than they pay they make prof
By raising the price Of money above It's value
II they do not succeed In 80 doing, then, lik
creditors become thslr dupes. Hence law pr, Pre-
hibiiing the payment Of Interest BY the bank
| would simply connne them to their leRitimAt
business, and prevent them from assuming i'm
proper risks. With the Government It Is total
different It's obligations must be met BY RI
sorting either 70 loans or taxation, and In defeI
mining its CHOICE Of alternatives the paramoun
consideration should be the best interests Of Ia
people, whose agent II ls. Sound policy dictate
that the Government should lose no opportunit
Of borrowing from Its own people, at q low rat
| OF interest, for the purpose Of dlschArglng ii
| Indebtedness sbroad or relieving industry an
enterprise at home from the tramnels Of taxs
panic, restore confidence, call forth the ho4rde
treasure Of the country, and revive the pursuit.
| Of industry, BY simple pledge OF tho people
credit for the peoples security, who will say tina
that pledge should not be given7
| AHornn OBJECTION
q the tendspcy 70 oeatralixaslon. To this al
tories would Be ip violation Of the Constitution
there Ia an snd o. the matter at onco. II, on u
contrary such action would not be constitutiona
| then the only quseeion u whether their esfah
| llshment would % the whole b. Advantasoou
for the peepls end the oovernmsnt. since n
and control he 6ssrins q .she ooeStsy, y ssd % h
found wars.at Of NV for Undertaking The tram
mission Of he peoples money through the mall
| II would appear that II v only dlechArging n