The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1874-12-04
WOrkIngmen and Savings Banks.

A savings-bank offers the laborer, Tor
the use OF his money, safe-keeping and
small, but sure, payment OF interest.
This is the apparent bargain. 1t is so
advantageous that it is not strange that
tens of millions of money are placed in
savings banks every year by the work
ing classes of the United States. The
real bargain, however, is far better
for the laborer than the apparent one.
The bank really offers HIM, besides
safe keeping and interest payment,
extra employment, steadier work, and
better wages. For the money deposited
| in these banks is loaned to men who
use it in the employment of labor.
| These loans, whether or not made ON
call, may generally be relied upon by
the borrower as permanent capital, so
long as he lays the interest promptly.
He borrows freely for this reason, and
because the rate of interest is compare
lively low, inasmuch as the banks get
the money at cheap rates. The bor-
rover uses his bard capital, almost in
variably, to employ labor in one way
or another. He extends his manu-
featuring enterprises. He builds
stores or dwellings,. He increases his
stock of goods, or otherwise enlarges
his business. In some of these ways he
provides wo k for more laborers, me-
chanics, clerks, etc. A deposit OF 81 900
/ in a savings bank, when loaned out,
| gives employment to one man or woman.
Now, there are between eight and nine
millions in the savings banks Of Chica-
/ go. Ii only two. thirds of this has been
! borrowed by business men, the working
men of Chicago have actually contrib
uted the means OF employing 5000 OF
! their number. We fear that American
mechanics and laborers rarely appreciate
such facts as these. If they viii follow
their bank accounts, they will see that
in depositing it they insure themselves
not only safety and interest, but work
and wages. The great prosperity of the
/ working classes in New England is at
once proved and caused by their heavy
/ deposits in the savings banks. II Mas
sachusetts, III such banks hold over
$115, 900. That sum probably keeps
an army of 100000 men and women
steadily at work. The exemption of
the Pacific States from financial trouble
and business depression, and their in
evitable resultof intense suffering among
the working classes is dne, first, TO
the fact that those States have q sound
specie currency, and second, that their
savings-banks have heavy lines Of de-
posits. Those of San Francisco, with
only half the population of Chicago, are
said to hold $24, ,000,0 600. If the work
ing men and women of Chicago would
raise their aggregate deposit from &c.
100000 to $29,000,0 900, as they easily
might do by practicing economy, they
would help themselves hundred times
more than the Relief and Aid Society
and all the other city charities can ever
help them. They would make many of
those charities happily useless. If the
poor choose to spend their earnings un-
productivity in the qualification of ap-
petite for whisky and upon foolish
amusements, they are booming them
selves and their fellows to future poY-
erty. On the other hand, the man who
has 81 900 in q savings bank is giving
employment, through the bank and the
borrower, either to himself or to an
other workingman. 1t is surely good
investment. t.-C Chicago Tribune.