The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-12-05
GOVERNMENT SAVINGS BANKS.

SECRETARY sHERMAN's RECOMMENDATION tt
coNGREss-How THE PEOPLE LIKE TIM
Observation-Disclosures WITH LEADING
SAVINGS BANK OFFICERS.
The suggestion OF Secretary Sherman made 10 Con.
gress his annual report. TO establish a national
savings bank system created good deal Of discussion
yesterday, not only among those who are directly
connected with the State savings banks. but also
among the people who, from one end OF tho
year the other keep their savings in these nsttu.
uons. Il admitted that time In the history
OF the country could the Secretary Of the Treasury
have made more timely suggestion, In 30 far thai
since 1873 more money had been lost by artisans,
tradcsmen, their wives and daughters by the failure
or savings banks all over the country than In any
other Investment they had risked. To show the
enormous extent Of savings thus quietly put by II
tho various savings banks OF the Uaiied States the
nearly thousand millions OF dollars. owned by no
less than 800 200 persons, are thus held to-day IN
various sections OF the country.
FOREIGN sysrEMs.
The Secretary proposes IN his report TO Congress to
follow the English system, by accepting deposits Of
small sums IRON Inc masses At tue various money
offices throughout the country and TO issue ID
return therefor government certinCateB convertible
on demand o tho nouer INTO four per cent bonus OF
The Uned States OF such character description and
amount as Will enable persons convert their earn
ings mo pubic security thus making each money
IN England There the teilers who have
charge oil particular branch tho Post ONCE
ofcius representing the BRUSH Treasury, and they
laxe charge oi tho peoples savings, returning IN ou
thereof either Uook the same as savings banks
now do, or, The holder 30 requires, no can obtain
consois tor Inc amount
In Germany, or, rather, In that part of IL which
used TO bs known ~ the Prussian kingdom, tho ns-
tiona savings bank system had worked admirably for
u number OF years. IL Is, however, organized on
different plan iron the British system wnicn secre.
tury Sherman intends to follow and has advantages
conversed yesterday worthy OF consideration. Tns
Prussan Post ONCE has nothing to do with The ssvings
of The people, there ure suDtreasury offices
lished III various quarters II The cy IN districts
TACT snar 10 those presided over by Ponce Inspec-
tors Dllks, Murray ana others IN THIS city la
Of these districts exists an Office Tor the deposit Of
small sums OF money. regular banking business Is
trained the work specially intrasssd TO them. and
Is 10 The government that the people look for the
safe keeping Of their spare earnings
WHAT OUR SAVINGS BANK oFFiuKRa SAY
In conversation with Comptroller Ledwitn, OF the
Emigrant Industrial Savings Bank, mat gentleman
stated that the Secreiarys suggestion, II adopted by
Congress. wouid not in,erisrs Win large savings
institutions VI The various ctics The postal savings
banks never would be able pay the interest wbicn
tho Guy Institutions could give TO customers
The business Of CITY savings banks was also strictly
local IN It's nature customers who mad deait with Them
for years know ths officers and understood the
chinery OF the concern where they mad deposited their
money, while IN government offices there was always
less quantity OF red tape, which would dis-
gust people dealing with them, vt least
those who frequently made deposits and M
places, whore there had boen and stsi any
number oil weak banks, and where people seldom
touch their deposits IRON Que year TO the other,
the postal savings bauk would be tho best sys.
tenn and De great SUCCESS In commercml centre
like New York, however. with several highly respon
ste savings banks abe 10 more interest than tho
government can anord and equally solid us the gov.
eminent ITSELF the natin nal system would not ut all
| interiero with the regular business OF The savings
banks.
Mr. Robert Leonard, Assistant Secretary OF the
Bowcry savings Bank, had yet paid little attention
To the Secretary's report but ne said..Ihe Secrs.
lary viii give them certificates or scrip. eh! What
Will The poor people 40 with thar Where are they
gong to keepY We, In our bank, have nj least nve
thousand dspositors who not only let ep cir
money. but their bank books too They stra.d OF
their bank books being either lost stolen. have
paid much attention 10 Secretary sherman's 70.
port but inclined 20 the belief that his ideas OF
q national savings bank ~ merely theoretical.
They Will not work well practically.
WELCOME 30 SOUND AN INSTITUTION
gentleman ior twenty years connected with the
Bank for Savings, IN Bisecker street. sa!d In the
absence OF the Comptroller he could speak ofi-
claly Tor the bank. Ho only knew that the 70.
cent law forbidding the payment Of more than nvo
por cont BY any bank uness ~ had surplus Of tesa
cent OF assets had worked well In TINS State. IL
had prevented small concerns from holding out In
duceepts 10 unwary aeposors IN the shape OF large
dividends and acteu thus indirectly as safeguard TO
the people. Nevertheless this question OF national
savings banks was not new question, and
II seer etnry Sherman could carry out his
OF the new system TO invest their lunds safely There
were many savings banks throughout the cou ntry,
but very lew sufficiently solid to satisfy she people,
and the government could do no harm whatever by
stepping aud taking charge Of whatever funds
people cared 10 ntrus 70 It's exchsQusr Aere IN tho
city the savings bank business was safe footing.
Nevertheless u the government stepped IN and went
into the savings bank business IL perfectly VOL
TO secure all the patronage could, the solid
banks OF the city had all the business more
deed, than they cared tor.