The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-01-16
POSTAL SAVINGS BANKS.
Reasons Why They Should
Be Organized.
CONDITION OF THE TREASURY
The Stock Market Buoyant and
Prices Strong.
MONEY ABUNDANT.
Gold Steady and Government and Rail
road Securities Firm.

Gold Steady and Government and Rail-
road Securities Firm.
WALL STRBET,s(
THURSDAY, Jan. 1876 p. NJ.
Few proportions have been made in connection
with the problems OF finance graver in impor-
tance, more deserving OF discussion, or moro
promising in healthfui results than that Of the
Postmaster General to establish postal savings
banks II Is to be regretted that the subject is not
generally understood. The system has been In
successful operation in England for twelve or
fifteen years. The savings there amount to many
millions Of pounds, and through all the periods Of
panic and depression which have interviewed we
have yet to learn that the confidence Of depositors
tn the safety OF their funds ever abated
for an instant. The plan consists simply In q
privilege accorded to citizens to deposit IN any
money order post office Of the country amounts
large and small, which thereafter draw certain
rate OF interest The postmaster transmits this
fund to the department, and the latter promptly
returns blank book for future entries and cer-
tiflcate OF receipt In other words, the g0veInmel
sakes the place of the present savings banks OF q
country IN becoming the custodian OF "
~, THE EARNINGS OF THE PEOPLE.
KhaS been urged as an objection to this plan
chat In country 80 populous as ours the
Keeping OF these accounts would require
complicated machinery and great bu-
reau Of onhcials. This Is not true; but
admitting the fact, for the sake Of argument, it
loses much Of its cogency in view Of the vast
dement's that would enure both to the government
and the depositors. On the one hand the Treas
nry would eventually accumulate hundreds of mil
lions OF dollars which, under appropriate legisla-
tion, might be applied to the redemption Of the
public debt. On the other hand the depositor
dpoxx h futo md rfu mi frOrn
falling reservoir. He would never lose confidence
in the fountain-head. In time Of panic there
would be no more "runs." The Treasury would be
IN q position to check all monetary crises In their
inclpiency. It might also invest, as banks now
do. It's surplus millions in its own securities and
by the payment Of q little less interest than Is
called for by the bonds so retired create a fund
which In time would be variously available for
THE PURPOSES OF THE GOVERNMENT.
II has been suggested in this connection that the
government might issue to depositOrs certificates
of deposit-evidences OF MISREPRESENTATION,
as security based on the public faith. would be
equivalent to the best securities In the world-in-
deed, equal to money ITSELF Viewed in any aspect
OF the question, however, the plan is fraught with
great advantages. Financially, strength would be
added to the government. We should hear no more
Of Treasury deficits or depletion while every de-
positor OF IS, $40 or 500 would be practically
purchaser ofthat proportion Of United States bond
and drawer ofinterest thereon. The SUBJECTS too
large to be treated exhaustively here, but enough
has been said to call public attention to the mat
ter, and we believe that the more 1t 10 examined
and discussed the more will its favorable features
become apparent and popular. Opposition to such
q scheme may naturally be anticipated from the
entire banking interest Of the country; but Con-
gress has 1t in its power to put the system sue
cessfuly at work within ninety days, and to start
stream OF accommodations that will at once relieve
the Treasury from embarrassment, solve the
riddle of taxation and make the country stronger
and richer than 1t has been at any period OF It's
career. The machinery already exists in every
postal money order office IN the United States.
THE CONDITION OF THE TREASURY
is by no means creditable to American finance.
Since the ofcal confession OF our Treasury ocials
we do not stand 30 well abroad as before. The
policy OF our debt reduction has been 1tful rather
chan the result of settled design. With unquestion
ably virtuous purposes as the motive power, the
end has been deficit and the deficit has CON-
PEELED an exposure Of our weakness. Our revenue
has been great; our expenditure reckless. We
are maintaining to-day hordes OF useless clerks
whose real place is at the plough TALL and who cling
to their positions simply by reason OF suppostitious
political influence. Dismiss this crowd and the
country might save $10,OoO,0Oo. We are
throwing away public treasure in extravagant
buildings, fat contracts, salaries here and
outlay there, for which the Qutd pro quo Is but
vulgar fraction yet when the attempt ls made to
retrench the entire army rise in rebellion, and,
from the chiefs down to the humblest subalterns,
array themselves in antagonism to the well-inten.
toned efforts Of the Congressional committees,
who seem to be seeking to preserve for America
her reputation. In spite OF the causes and results
OF the late panic we can recover all that has been
lost We can continue to show surplus. The coun-
try Is still In process Of growth, and all that 1t
requires to exhibit improvement Is an exercise OF
rigid economy; taxation Is unnecessary; an addi-
ti0nal loan Ii unnecessary The object to be at
tanned Is not worth the cost. Our whole need may
be expressed in one w0rd-retrenchment.
THE UNITED STATES TREASURY.
the balances In the Treasury at the close Of
business to-day were currency, $S,5oo,ooo; coin.
legal tenders to-day, 1881 ,sl5; increase since
yesterday, $114.00o The internal revenue receipts
were S313,947. The customs receipts were $4,000.
The Assistant Treasurer paid out to-day $4,000
on account Of interest and $4,000 IN redemption
OF nve.twenty bonds.
GOVERNMENT BONDS.
Government bonds closed Arm 1t the best
prices OF the day limited States skies, 1881,
registered, 116A 1854; d., do, coupon. 1l7s<
n7X; DO. fve-twenties. registered, 1ia,<; do,
1852, coupon, 113x ia; do 1854. registered 1l5s
do, DO, coupon, 115x; do, 1856, registered, 1864
lilo; DO. do, coupon 1le,1 li6'l; do, DO, new,
registered, 1l5,S 1l51S; do, 1866, coupon, new,
115X 115Ij do, 1867, registered, 116K ICY do
do, coupon l1eA 11eX; do, 1858, registered, 116
llex; do do., coupon, 1161k l16X; do. ten-iortes
registered, 112x o 113; do. coupon, 113H liz;
do ives, 1881, coupon, 112X 112A; do. six per
cent Pacific Railroad, ia 1l4zi.
THE MONEY MARKET.
Money at the close was easy, with generous Offer
ings ct and 8 per cent. Discounts are unchanged.
Eareirn excbanQe closed dnll and steady for prime