The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1877-09-06
THE 3.65 BOND.

The theories of the greenbackerS
are being every day more and more
accepted. One of their plans is an in
terconvertible bond, bearing 3.65 per
ct. interest per annlm issued in sums
of $s25 and upwards. tits claimed that
these bonds would be readily taken by
the people; that they would fur
nish practically all the advantages of
national savings fund: and that, be-
ing interconvertible with greenbacks,
the holders could at any time present
them and demand payment in paper
money.
And now comes the Chicago Trib-
uae, a leading republican paper. and
proposes substantially the same plan.
We quote from the Pioneer Press:
The Chicago Tribune strongly advo-
Gates a governmental savings bank
system, similar to the British ''Post-
office savings bank SYSTEM to pro-
tect the industrial classes against
frauds and swindles under the name
Of insurance companies and savings
banks and kindred organizations.
Under the British system, the post
master at each post-otfice OF certain
class is made the government agent
of the savins bank. He receives all
deposits, giving a book or certificate,
or entering it in q pass-bOok, OF the
amount received. The money is for
warded to the general office in Lon
don, where it is invested in British
consols, bearing per cent. There is
paid to the deposltor 2 IL per cent. in
terest. At the end Of 1875 there were
on deposit about $l36, 900. 900 in these
postoffice banks. The difference be-
tween the rate of interest on the bond
and that paid to the depositor is in
tended to cover the cost OF manage
ment. The government refuses to re-
ceive more than sl25 from each person,
and it appears that there are about two
millions of depositors. The Tribune
thinks similar arrangement is possi-
BILE in the United States, and that it
would absorb a large portion of the
ST. 900 900. 900 now deposited in the
several safety and trust banks Of the
country, as well as the 500 bonds.
Here is the scheme in detail, and it
looks feasible enough. if people can be
found to take 1865 per cent. perannum
with absolute security. when private
savings institutions hold out the prom
ise Of five or six per cent. interest and
principal at the dep0sitor's risk. The
Tribune says:
Every postoffice authorized to re-
ceiye registered letters might be made
a receiving office for savings deposits.
This money might be forwarded to
the sub-treasury and sold for coin,and
with the coin call in $40 bonds draw
ing 6 per cent interest, or purchase
5-2Os with currency in the open market
which ever would be best. With
greenbacks worth % or more, there
would not be much loss in buying that
class Of bonds which draw high in
terest in gold
The government could afford to pay
to the depositor 3.65 per cent. interest.
which would leave a sufficient margin
| to pay the cost of managing those
| trust funds. That rate of interest is
easy of computation. 1t is one cent a
day on each 500. 1t is half a cent a
day on $50, and two and a quarter
cents q day on 1926. 1t is 70 cents a
week on 1000. Every depositor
could readily compute the amount OF
| interest due him at any moment. Ir
England. as we have said, there is a
limit to the sum deposited by any one
person. which limit is. we think
twenty-five pounds, Or 1925, the pur
pose being to furnish safe investments
for persons Of small means and Of
Industrious and thrifty habits. We
have no question that, with deposit!
limited to SJ@J ny any one person
there would in q very few years bt
many hundreds of millions Of dollar:
seek this National Savings bank il
this country. 1t would be safe be
yond all question or suspicion. Th'
details, of course, would be such a.
might be suggested for such larg,
|. undertaking, but every man, an.
woman, and child depositing 81 o
$500 would have the fullest .assuranc
of safety from loss by defalcation
) embezzlement, fraud. or mismanage
: ment. So long as the America
nation continued to exist, their ds
posits would be absolutely safe, tn
, interest certain, and payment woul
J be beyond all doubt. Il
THE BA NKERSs CONGRESS-.
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