Vicksburg weekly herald. (Vicksburg, Miss.) 1868-1883, 1877-09-07
Popular Substitutes for Savings
Banks.

Banks.
Chicago Tines
The existing system Of savings banks
in Illinois Is q bad one for depositors
and for stockholders whose intentions
are honest. Competition is so sharp
that, 10 get patronage enough 10 pay
expenses, managers will offer rates Of
interest which cannot honestly be paid,
and the attempt 10 pay which
must sooner or later end IN dis
aster for all except the big thieves
whom the law protects against
criminal prosecution, and who
can escape even civil suit by being sui
fcieutly adroit in the transfer ct their
property to relatives or agents. II Ia a
bad system for bankers Wishing 10 do au
houest aud Legitimate business, for even
the thirty or sixty-day rule cannot save
them from the danger of q run inspired
b. rumors or by caprice. Unthinking
deposi.ori cannot comprehend that
banking business cannot be carried on
If every dollar they deposit is kept in
the vaults, 10 be paid out Whenever
they choose 10 cali FOR the cash. Their
money must be employed III whatever
way it will Pay ID a profit 10 the MAJ
ayers OF tie bank, ~ q profit 10 the
stockholders, (3) a profit 10 the deposit
ore. The general shrlnkage In all val.
ties marks the epoch OF decay III sav-
ings banks on q system which has
proved successful III prosperoC; times
under careful and honest management.
What shall take the place OF savings
banker Government twenty.fvc.do!
lar bond bearing four per cent, obtaina'
bic without middlemeu's percentage OF
syndicate tax, at the United States sub.
treasures or d%epositaries aud, III the
cities where there is neither a Sub,
treasury nor depo;itary, at the money
order department of the post.ofiCe
There could be no more iucon.
veuience or difficulty IN delivering
such bonds than in selling stamps.
John Sherman should make the issuC
OF the popular bond one Of the promi
nenl features Of his policy. No op'
position will be offered 10 It In Con
gress, Our people will be glad to TAXI
Government securities If they q ge
them in denominations within thei.
reach, aud they have q right 10 be per
mitted 10 obtain as the reward OF thei,
frugalily and self.deniat the interes
now shipped abroad. Let US have tht
popular bond a. one remedy for thr
correction soi the evils Of the presen
savings bank system, aud as q protec
ton for the thrifty poor. There is no
q single good reason why the rich ma
alone should be allowed 10 invest II
national securities. The workingmen o
France are glad TO buy ten-dol.ar Sc
. curities from their Government, an
tie Government is glad 10 sell.
: tweuty-6ve.dollar iour.per-cent. wi
be as good al accommodation for on
laboling people, and 1t should b
placed within their reach as sooH q
, practicable.
d The Government ot the city o. CAi
5 cage eau also take advantage o. th
: crisis in savings deposits. Tie tuude
debt of the ciiy-at least, the bulk
-, ~, say leu Wli!lONs-CaL Oe ICIIhueu
I such a mannn" az will accommodaI
I tho elas, who have hitherto pa'ron!ze
Q savings banks and will p~ltroniGa thel
70 longer. a four.pcr.cen', CITY bon
OF tn dollars can be issued, whic
r will be a double blessing-it will atIor
a sound investment for small earning
and 1t will enable the city to redGt
the AMOUNT OF its interest bgrdc
r nearly one-half.
!. The issue ola popular ten.dollar eli
>. bond would infuse q new inspiralio
into thepeople. The investors woul
feel compelled TO exercise a more vii
c orous scrutiny in the selection of pc
: sons 10 administer municipal affair
This alone Is sufficient reason why sue
a bond should be Issued,