National Republican., 1877-08-30
S.iJI.yGS BANKS.

far more than ordinary Importance, owing
to the fact that the amount involved is 80
great and the number of depositors 20 large.
Three millions of liabilities distributed
among sixteen thousand families will pro-
ducc an appalling amount Of anxiety and
suffering. Nor is the evil likely to stop
with the failure Of one bank, but will
likely result In the ultimate suspension OF
many others, and the complete destruction
of public confidence in this class oil inslitu-
stions
, Savings banks, If properly conducted, are
Of such manifest utility that the discrcdit
into which they have been brought by the
mismanagemont of their officers amounts to
great national calamity. The public in
forests demand that thesys,cm shoulde either
be rendered safe or some substitute found
for II. Human ingenuity has been taxed
TO the utmost to devise schemes for render
ing banks of this sort secure, but all the
safeguards thus far devised have proven to
he comparatively worthless. Under any
plan that can he conceived great deal
must be left TO the skill and integrity Of
the officers. Experience has shown that
mismanagcment and dishonesty are OF such
frequent occurrence that the practical
utility of savings banks may he considered
as at an end.
, II is important, therefore, that some sub
stitute should be devised for the savings
banks which have hitherto Ind the custody
OF so large q share Of the surplus earnings
of our citizens II is very necessary that
tfrugnlity should be encouraged among the
people, but II will be impossible to accom-
Iplish that result without providing them
with the means of safely investing their sur
splus earnings 80 that they may be secure
hnd draw o reasonable amount Of interest.
EIf absolute security could be obtained the
amount Of savings would be very greatly
Increased, and habits Of economy and thrift
would thereby be encouraged and aug
mented.
:. We believe that this desidsratum can
readily be obtained by simply making the
currency Of the nation exchangesble for
interest-b<aring bonds of the national Gov
eminent Although We do not believe in
Che practicability Of the scheme advocated
by Hon. W. d. KELLEY and othes, which
proposes to issue an indefinite amount Of
Sgrecnbaeks to be interchangeable with Gov
eminent bonds at low rate OF interest, we
nevertheless think that that plan contains
the germ Of what might be made very
useful and beneRcent national financial
policy.
We consider the greenback portion Of
WI NEhi4h t'Viy h"pto,'eV'sNf 'hs W,
believe that that part Of 1t which proposes
20 popularize the Government securitieSby
sffording the people facilities and induce
mcnts to invest their money in them should
be carried out. The Government IL now 9
borrower Of q sum Of money exceeding il
che aggregate the surplus earnings which
che people OF the United States wish 10 in
vest in some secure way 20 that 1t viii
draw interest, Why should not the Gov
srnment, then, receive this surplus none.
from tho people, and pay them interest 10
IL. instead Of borrowing 1t In foreign coun
tiics and paying out the interest abroad
Ihe machinery for accomplishing thi
result would be substantially the samc as tha
stopo-ed by the advocates Of Ne scheme O
riakiny the greenbacks exchnngeablc 70
bonds. Instead Of paying pSmlsesto pay !
the shape oil forced legsl.temilsr notes, "
would propose TO demand for them coin, or
currency rcdeeuable In coin. The bonds Issue
in this way should Of course be st any tim
exchangeable for money, in order that u
holders might be able to realize on thel
.promptIy and without cost, rs their hecess
dies or inclinations might demand.
IL must be said in favor Of the theory
issue greenbacks interchangeable wit
honds that IL wohld, If practicable, max
the Government q substitute for saving
banks, for no one would patronize the
when they could invest their surplus ear
ingr in Government bonds with Just
much facility and with the additional n,
vantage of absolute security. Those wi
believe In the greenback scheme above +
fcrred to constitute no inconsiderable po
ton Of the people Of the United Stat.
When they find that their plan cannot
carried out in full they would, no dout
very gladly accept u compromise by whit
one OF It's most valuable features would
preserved.
But, however that might he, the fact
that the people OF the United States d
familiarzcd with the idea Of looking
Government bonds as the only safe inve
mcnt for their savings. The success viii
attended the taking Of the four per cent. 10
during the very short period the people Ii
an opportunity TO subscribe for u as q POI
lar loan indicates that 1t would have be
practicable to have placed the ent
amount of that loan in the hands Of {
own people. To have accomplished this
suit Il would have been necessary, Of coui
70 have given more perfect facilities to
people for getting the bonds than the n
chinery of the syndicate provides, and Ill
Mise 10 have extended the time consideral
The Necessity for action is urgent.
many savings banks have fiiied recen
that popular confidence in them Is uttc
destroyed. Fortunately 1t IL within
power OF the Government, by means OF
popular loan to afford the people the me-
Of securing their savings and at the 81
time strengthen the hold Of that Cove
ment upon the popular affections. 7
agony which 30 many thousands Of peo
endured yesterday in Chicago when Il
learned Of the failure OF the bank in VIII
their little fortunes were deposited appe
eIOquently TO the Government to excr,
the power which it Possesses Of giving
people security for their savings.
TREATING WITH SITTING bull
II appears from an interview with G
TERRY, which has been published, that
Is of the opinion that the redoubtahle
dian chief SITTING BULL Inns left CAM
and Is now on our own soil. 1t Is tt
hoped that this will turn out to be the C
for IL will save our Government the humi
ton of sending commissioners to that
tanned barbarian, who has twice badly
feated our military forces, and who Is