The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-09-23
Government savings Banks.

Government Savings Banks.
Tho recent numerous savings banks fail
ures in this city and elsewhere have called
forth IA demand that the United States Gov
crnmcnt should undertake the business Of
receiving poor peoples money and paying
them interest ON 1t. The sentiment which
undcrics the proposition is the same as that
which gave rise last summer to clamor for
the establishment of an immense national
standing army TO protect railroad property
against nohs, and for the general oversight
by Government officials Of railroad business.
II Is an inordinatc ovcrcstlmatc. in the first
place. OF the efficiency of the Government
as compared with that Of private per-
sons and corporations, and complete in
scnsibility to the mischicfs which W ould re-
suit from such all immense increase Of Gov
eminent power aud patronage.
The idea that n man who is neither honest
nor capable while employed 10y a private
corporation will become both 10y being in
vested with Office under the United States, Is
too absurd for iclutatiun We see too many
proofs to the contrary all around us 10 cn-
terrain il for moment. II the Presidents
and trustees Of our existing savings banks
occasionally prove TO be scoundrcls, SO do
Pustmastcrs, Collectors OF Internal Revenue,
and Custom House officers. Human nature
* not changed 10y change OF title and po-
sitiun. The men who have plundcred the
Clairmont Savings Bank. for example, would
have plundorcd it all the same II they had
been put in charge Of 1t 10y the authorities az
Washington, aud they would have deceived
the United States Examiner Just ~ easily as
they did the state Bauk Superintendent
The fate OF the Frecdman's Savings Bank is
standing warning against trusting money
to institutions Incorporated by the United
states and managed by United States APP
pOintces
or course, It will be said that the chief
benefit to be attained by having one great
National Savings Bank, with innuinerablc
branches and agencies throughout the
country, 10 that dsfalcation or robbery In
any one spot would be made good out OF the
combined resources Of the whole concern.
That is TO say, the nation at large is to in
sure tho fidelity ~ its employees in keeping
not only the public moneys. but the millions
upon millions OF the savings Of It's citizens
50 long. indeed, A. we have great national
debt. and the Government could invest de-
posts IN It's own bonds, the risk would be
small. But we hope that the national debt
will not exist forever and when 1t Is finally
paid Of, what would be done with the $780,
0r000 ~ savings of the people Of this
state. for example The history Of the
s. o1o,000 Of the States portion OF the United
States surplus revenue, "a told by our
Comptroller to the last Legislature, Is both
in truciive aui conclusive. very much
loss sum Il an s3yO,oD,o0) put in charge OF
United States officers to invest would be
scattered and lost to an appalling extent
But behind and above this danger is that
Of the immense addition which the adoption
Of the scheme would make ~ the already
enormous influence OF the Federal Govern
ment. standing army OF 10000 men, such
as Col Scorr demands, Stationed at the prin-
cipal cities and towns Of the country. would
hardly be n more useful machine in the
hands OF an interruptions Executive than
Eational savings bank holding the property
OF the people In its grasp, and lending il out
20 It's 'lvoritcs. 1t Is notorious that men
often accept the post OF trustees In the uu-
merous little savings banks we have now,
purely for the sake Of tho opportunity it
gives them OF controlling tho Investment If
deposits. What would not be the patronage
4 tho managers Of gigantic institution
receiving The deposits q the entire nation
ono thing the national Government can
10, and Ought TO do, without delay. II can
ma should encourage the taking up of the
national debit in small sums by the people
by establishing transfer Offices for regis
tered bonds at every financial centre OF i'm
portance, aud issuing certificates from them
directly, instead Of requiring Investors, as
II docs now, to pay the expense ~ trans
hitting tho nece -,ary papers 10 Washing
tom. i IDS With coupons are, indeed. trans
ietable by mere delivery, but this worry
quality renders Thorn as troublesome 10
keep safely as bank bills. II, however, n
man having so or SOD could buy q regis
tered bo4l with the money and have it
tran-,:rrcd Mt once = his name by going
short distance from his residence, confident
that thereafter 10 robbery could deprive
him Of either principal or interest. 1t would
be- a great iuduccintnt for him u make the
Investment II the agitation for national
savings bank should result in some such
measure as this, 1t would not be altogether
unprOductlvc ~ good