, 1877-09-02

it receives until the order is raid. This busi
ness Of receiving money and issuing postal
orders therefor amounts in the year to many
millions Of dollars. No one has ever imaginee
that this was paternalism, or any Govern
mental interference with private business
The amount of money sent by mail through
the agency Of postal orders is very insignid'
cant compared with that deposited with say.
ings banks. The offer by the Government to
receive these deposits, become responsible
therefor, and pay interest thereon, is but to
| offer security to the depositor, which oil
experience has shown cannot be otherwise
obtaine3, Just as the postal orders are pro-
lection against the very common robbery of
the mails. As persons may now resort to
bank drafts or postal orders at their pleasure,
| SO the people would have the option to de-
| posit with the Government or with private
banks. Tho fact that the Government offer
ed absolute security would operate, as it has
in England, to compel the private banks to
maintain honest management, lest their whole
deposits be withdrawn.
A law WAS proposed in this State intended
for the protection of depositors, and
providing for official examination and
supervision of all State banks. There
was an opposition to such Inv by tho major
| ity Of the $50 or moro banks doing business
under State charters, aud this opposition was
| sufficient to defent the law. It is rnisfor-
tune that the law was not passed. It might,
if honestly administered, be of some benefit
in preventing frauds but official supervision
at best amounts to little. The value of even
sworn statcments and official inspections have
been illustrated III numerous instances of
National Banks and of now bankrupt insur-
ance companies. y Superintendent of
sayings-banks in New York who permitted
the fraudulent management Of bank which
failed has just been tried and punished only
by removal from Office Such investigations,
when dishonest, are but additional means to
deceive and plunder the public.
There can be no such adequate protection
to depositors as that which can be afforded
by having their deposits received into the
Treasury of the United States. The New
York NtroM, which heartily approves the
Post Office Savings-Banks measure, says:
The true remedy is that which was adopted In
En"land some sixteen years since, and Is operating
admirably that 1t commands universal approval
III that country. We Of course refer to the law,
carried through Parliament By Mr.. GLADSTONE III
1851 establishing Swings hanks in connection
with the Post Office. Tint excellent law. which
has proved go successful and so beneficial. grew
out Of etate of thngs sin,ilar to that which now
exists in this country, and described follows by
the authority from which we take the fncts: :Ec-
tween 1910 and 1887 the sreat frauds and defalca-
tlous III these banks had tendency to destroy the
confidence Of the people in their stability. As
early 1906 Mr.. WHITEHEAD had proposed the
establishment Of savings banks in connection with
the Post-O0lcc. III 1850. at meeting Of tho So
clal Science Association. paper was read the
subject by Mr.. S1kEs, OF the Huddersiicld Banking
Company, which attracted the Intention OF tho
Postmaster General and Others and finally plan,
to great extent based On Mr. S1KEs' suggestions,
Was matnrcd BY GEORGE CrETwrSp and FRANZ
SCUpMoEE, with the cooperation Of Sir ROWLAND
HILL" \ bill embodyfng this plan the one
carried through Parliament by Mr.. GLADSTONE.
The SUCCESS of this plan In England Ia SO per-
feet and has been fully tested by experience TINT
it deserves attention in this country, when we 50
urgently need remedy for the same stnte OF
things which led to its adoption. It grew into
favor wit the worStng-cla*scs somewhat slowly. |
=
the law th.. sum Of post-ofcc deposits was only
II. 6o4 ~. Ut the end OF 1878 it had risen to
,7 74', 4.:,, and the Deposited constantly
increases from year to year, although the rate OF
interest allowed is only ~ per cent, while the
ordinary savings banks pay -. per cent, tho feel
ing OF absolute security calssing g. 900, 900 OF de-
posltors tthe number was = OF, G95 In 1879 to
prefer dcposi,ny the Post Office at lower Inter-
est. Ono tif the effects OF SO entirely Trustworthy
rival is to keep the savings banks Of England on
sound basis, lest they should 1oee al1 their de-
1ositors.
The details of the measure are very SIM
ole, and e"sy to be carried out. The Gov
now conpe1s the banks to deposit
security for their notes, and to keep q fund
It Washington to redeem currency This is
lirect interference with the banking busi-
less to protect note-holders. The savings
'anks will be merely q means whereby de-
'ositors may it they 80 choose accept the
'bsointe security OF the Government There
IN be no rational objection to the measure;
md Congress at its next session should
promptly provide this means of protecting
he people from the frauds aud robberies
vhlch hare become incidental to the present
ystem Of savings banks.
|