, 1877-09-02
THE POSTAL SAVINGS BANKS,


this city, and the now evident wholesale
plunder and robbery of the depositozs BY the
officers of the bank, have attracted general
attention in all parts Of the country to the
insecurity of the whole savings-bank sys:em
In fact, there is 10 security for depositors.
Even the personal character aud RESPONSE
bility of the managers afford no permanent
responsibility or defense. Combinations may
be made, and possession of a controlling
amount of the stock may be secured, aud
in single day new management may be
installed, and the millions belonging to the
depositors placed in the custody of deliberate
swindlers. If the Chicago case be in some
respects greater fraud than those perpe-
trated elsewhere, it is only because the
operators were greater villains and their
opportunities better. We repeat what we
Sid several days ago, that the time has come
calling for the interposition of the Govern
ment to protect the many millions of citizens
wEo own the one thousand or twelve
hundred millions of dollars deposited in tile
savings institutions Of the country We do
not propose that the Government shall cstab-
lish bank, and lend out other peoples
money. But we do propose that the Coy
ernment, which has seventeen hundred mill
ions of gold bonds outstanding, shall offer to
receive the savings deposits and invest them
in its own obligations. The Government is
paying per cent gold interest on Ssh. .ooO,-
ooo Of bonds, and 5 per cent gold interest on
$10O, 1000 bonds These bonds are held
oil over the world. The 6 per cents are all
subject TO- call. aud be taken up by the
Government at pleasure. We propose TINT
tile Government shall offer 10 the people Of
the country to receive their deposits and ,,ny
thereon interest at the rate of :;.;5 Der cent.
With the money thus deposited the & per
cent bonds called in from time to time NAV
be either purchased or paid. The Govern
nlent would thereby save the difference be-
tween the two rates of interest, less the cost
OF management. The cost of management
i'll England Mt present is less than one-half
of per cent So fnr rs the Government is
concerned, the transaction would be merely
n change OF creditors, with q reduction of
interest from the present rates to Sc, Der
cent. The agency Of the post-offices is the
best. because it extends the facilities of max
ing deposits to every town and village, there
oy enlarg1ng the usefulness of the savings
banks, and also facilitating the payment of
Interest or principal.
The only serious objection made to this
scheme of post-ofice savings banks is. TINT it
will be the assumption of paternal power,
the exercise of authority over the business |
affairs Of the people. Let us see how far
this is true. The Government nov borrows |
money and pays interest thereon. It is pro-
posed that the Government shall continue to |
borrow money, subject to call, paying inter-
est on such balances as may be left in its
hands. To borrow money for public uses is
one of the expressly granted powers and in
functions of all Governments.
Inc Government now receives on deposit and
uas III It's vaults an average of $50: :0OO. 600 to
s'o'uoo:ooo OF private money, subject to
eail' tor the custody Of which it is RESPONSE
bic; and which it receives and pays out with
'ut interest II 1t can furnish vaults for the
SAFE keeplng, and be responsible for. and
issue eertlhcates for, the money of the rich.
u u can certainly do the same for the Door.
Inc l1ch make no compensation for the safe
Aeep1ng and cost of handling their deposits
Inc treasury. No interest is paid On it
'ecause the Government cauuot use it rha
government receives money now at the
'ost-othces, and issues orders therefor nar-
ole IN any part of tho country, It
ollects charge for the service and
'eoomes responsible for the money