The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-01-12

which will be read with interest by the public.
1t sums up succinctly the work done, and
allows us to judge intelligently the value Of
the system. The idea Of establishing savings
banks under government guarantee in connec-
ton with the administration of the Post Office
was originally put forth ably and energetically
by the English press. 1t was the outgrowth of
feeling of insecurity engendered by the then
defective system of savings banks, which
offered no real security for the hoardings of
the poor. The natural consequence of this
want of faith was the growth of habits of
unthrift among the people. The supporters
of the scheme of postal savings banks urged
upon Parliament that what was needed
to encourage habits of economy among the
poorer classes was not the attraction of high
rates of interest, but an assurance of absolute
security that the money placed in bank would
neither be squandered nor stolen. No private
organization could give such guarantee. In
order to establish the fullest confidence it was
necessary for the government to set its seal
on the institution and guarantee the deposit
tors from loss. The Post Office, with its rami-
fcations in all parts Of the country and its
established money order system. was admirably
adapted to place the advantages Of the pro-
posed banks within reach of the whole popu-
lation. After full discussion of the advisa-
bility of ENGRAVING a banking system on the
Post Office, the advantages likely to be derived
by the working classes from the system were
admitted to be so great that its adoption was
decided on.
The experiment soon proved complete
success, though it was alleged by the evil
prophets that as soon as the first flush of the
economy fever had passed and the novelty of
putting shillings in bank had worn of, the
workingman would return to his old habits
and spend his shillings buying beer. These
views have been disproved by the statistical
returns, and the number of depositors con-
tinues steadily to increase. The deposits now
number wellnigh million and half, the
average deposit amounting to something over
thirteen pounds sterling-quite o large sum
in the eyes of an English workingman. The
smallest deposit received in the postal banks
is one English shilling, or about twenty
five cents of our money. An oppor-
blest workingmen, apprentices and even
the poor sewing girls to lay by something in
the days Of comparative prosperity. And the
extent to which these classes avail themselves
of the opportunity to hoard up little savings
is conclusive proof Of the value of the sys-
tenn to the industrious poor. In order to con-
cilate the opposition Of the banking interest
in the House of Commons the English gov
eminent carefully circumscribed the scope of
the postal banks. They were intended to be
chiefly, if not solely, for the use of the work
ing classes, or those people of small means
who were supposed to be most in need of the
protecting and fostering care of the govern
ment The limit named for interest bearing
deposits was therefore placed at the compare
lively low figure of two hundred pounds, or
one thousand dollars, the deposits of any one
year not to exceed one hundred and fifty
dollars interest to be paid on all deposits at
the rate OF two and half per cent per an
mum, and on the 31st of December of each year
the interest due to every depositor to be added
to his account.
While affording the workingman an abso-
lutte security for his deposits, the postal bank
offers facilities for the transfer of his small
capital such as no other existing institution
could give him. Not alone can he make new
deposits in any part of the United Kingdom
without further formalty than presenting his
bank book, but he can also draw on his &C
count wherever a money order Office exists by
simply giving the usual notice to the Post
master General This feature is particularly
advantageous to the working man, who is en-
abled to move his capital about without risk
and without expense. And, by rule which is
stric city enforced, the officers of the banks are
forbidden to give any information about the
names of the depositors or the amounts placed
to their credit.
The postal banks have now stood the test of
time for something over twelve years, and,
whether we judge them by the number
and extent of their transactions or the
public favor with which they are regarded,
we must pronounce them complete and graf
flying success. They promise to exert most
wholesome influence on the rising generation
of British work people by encouraging the
growth of habits of economy and thrift which
were almost unknown before the establishment
of the postal savings banks or exercised under
very unfavorable circumstances. More than
three millions Of accounts were opened during
the first twelve years the postal banks were in
operation, and about one million and half
remain open as a testimony to the thrift
of the working classes under a system
| of wise encouragement There are now in
the hands Of these banks sums amounting to
twenty millions of dollars belonging to the
humblest classes of the community. Under
the old system most of this money would
have found its way to the beer houses, and
| would have been the prolific seed of crime