The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1873-10-22
Postal SaYings' Banks.


Postmaster General Creswell has not been
sa isfed to run his department after the mod
e! and within the limits of is predecessors in
that office. From tae first, he has seemed
ambitious to extend t1e usefulness of one OF
The few departments of the government, the
advantages OF which the humbest citizen
may avail himself of and one OF the most i'm
rortant agencies to promote the intelligence
OF the pc ,ple ard cultivate proper relations
between the most remote sections. The coun-
try will generally appreciate the valuable eff
forts of Mr.. Ores well and credit him with the
great measure of success he has met in re-
ducng the cost of foreign mail service, in
the adoption of a system of postal car SER
vice by which the delivery OF large masses OF
mail matter is facilitated, in extending the
system OF letter carriers in ci les, III improv
ing by treaty our postal regulations with 9TH
er governments, in the adoption of system
of reform in letting mail contracts, and in
the introduction of postal cards, and in the
possible service he has rendered the country
by his persistent opposition to the frankine
privilege which doubtless contributed largely
to its abolition.
Mr.. Creswell has already shown desire to
extend the functions of his department by
his early and constant advocacy of the policy
of the government purchasing the telegraph
lines of the country and either directly or r,
motely assuming their control. Betole he
has made much headway in bringing the
70
the postal telegraph scheme, he now declares
that he will ask Congress to establish at the
principal post offices of the country, postal
savings banks. If the Rev. Petroleum v.
Nasty had thought of this plan, how much
greater would have been his anxiety TO have
retained the Office at the Gross Roadsl
The plan Of postal savings banks is not
an original one of Mr.. Creswell, but has been
In operation in Great Britain since Septem-
Der 1861. There the system has met with so
much favor that, although the interest is but
two aid half per cent, the number of fl
nancial post offices, originally two thousand
five hundred and thirty-fve, has much more
than doubled. the number of depositors in
creased from between six and seven hundred
thousand to considerably over two millions,
and the amount of money annually entrusted
to the government from So, ia, $3.50 to almost
IS, 900 600, leaving at the end of ten years a
balance on hand of e17,303,S 15, or about
eighty four millions of dollars. The En-
gsh Government has ascertained about the
am aunt of these deposits that will be drawn,
and that sum it retains and invests the bal
ance in national securities, so that the public
treasury loses nothing by the operation.
Tue Postmaster Generals plan, as set forth
in his speech-which is to establish postal saw
ings banks. and use The deposits TO establish
and equip the postal telegraph-will strike the
country as a novel and extensive project for a
departmental the government to contem
plate carrying into execution. At three per
= cent. Interest, however, Mr.. Creswell can
hardly lxpect to realize enough money in the
way OF deposits to purchase or build telegraph
lines to any extent, so long as every consider
able town in the northern States has its saw
ings )ank, where deposits are thoroughly
safe, and yield an income of six per cent.
With these institutions at hand, it will re-
quire years TO put .hese savings banks in OPP
GRAFTON. In the chast rhetoric of the Post
master-General, his plan is very taking. but
it will find difficulties at every hand, particu-
iarly so long as it is uncerta n whether the
people are convinced that it is desirable to at
tach the telegraph system of the country to a
department OF the government.
Another ground upon which the necessity
of "a stole I,o, I, g,
to provide places OF deposit for large sums of
money when out OF use for few mouths, to
prevent its being deposited at interest in the
banks of the large cities, which is in tuln
loaned by the banks to stock gamblers, and
invested in bonds and stocks that cannot be
realized on when the depositors want their
money to put into business. In other words
the postal savings bank will be means of
giving elasticity to the currency, by absorbing
it when cut of use, and paying it out when
the moving OF the crops and like occasions are
likely to produce stringency. This would
all be very well if the government merely col
lected this money and locked it up in its
vaults, paying the interest, but receiving nc
return; but when it purchases its bonds with
this money, it is again initiating the currency,
and is laying aside a lot of securities that it
must sell when the depostors call for their
money in September and June, thus produc-
ing stringency or draw to a dan
gerous extent upon the legitimate reserves
OF the treasury. In short, the postal savings
banks will operate against the elasticity of
the currency, if used in this way, just the
same as the ordinary bank operations do.
Perhaps the measure of success that has
crowned Mr., Creswelrs efforts to improve the
postal system and introduce reforms, has led
him TO believe that he can do still greater
things for the country. He should, however,
be well assured that he can in no way pro.
mote the further efficiency of the postal SER
vice, and that the measures of reform that he
has already secured are beyond the danger Of
overthrow, before he makes further advance
or wastes his energies upon schemes that fail
to commend themselves.