The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1877-12-15
SAVINGS DEPOSITS.

SAVINGS UkfVoATS.
The failure Of SO many savings banks uur-
ING the past year and the attendant fliGrcdit OF
such institutions so as to close up many sol,
vent ones for want of business, had the effect
strongly to impress upon Secretary sherman
the necessity Of some systematic provision by
the government for the safc-keeping of the sur
plus earnings of the working classes Such
provision is made IN England, France and
Germany and IN all those countries works ad
mirablv. The system Secretary sherman
seems to favor Is that Of the English postal
savings bank. lis operation is very simple
and with little care can he made not only
SAFE, convenient and profitable for the dcposi
tor, but also cminently advantageous TO the
government The plan is about this; Each
postal order office is made a depositary The
deposit0r take, his savings, from dollar NJ,
TO the post Ofice, and receives a certificate
This the postmaster will at any time redeem
on demand, or when the deposits amount IL
the even sam Of twenty-five fifty or one hun
bred collars, the postmaster will receive the
certificates in exchange for per cent. bond
Though these bonds may also De made pay
able on demand as the average amount on dc
post at any time, after the system Is fully IN
operation, is not expected TO vary million
wear in and wear ont, and the aggregate depos
its, Judging by the amounts now in the saving,
banks, will not be less than SsO0,000,O00 il i,
evident that the government will, by these de
posts, be supplied with the means to take VI
all her present outstanding six per cent. bonds
and convert them into per cents, without the
costly Intervention OF syndicate, and with the
further important advantage that the bond,
will be in the hands of our own people and
not held by foreigners, with their insolcnt de
mands for gold and threats to ruin our nation
al credit, and all that
But whether the bonds are rcdccmable Oh
demand, or are made TO run 60 years, as Sher
man proposals such bonds now command
a premium of q. per cent. in grcenbaGks there
is no danger that they will ever fall below par
and the holder can always sell them for thci
face worth to any banker or broker, unless thu
credit of our government should become 81
greatly impaired as to seriously affect the value
of the bonds, in which case the deposition
would still be on the safe side of having The
government to care for him, while in the hand,
of common savings bank there would be NJ
help for him. However, III England and
France, III an experience Of over thirty years
amid wars, panics and many other severe trial,
of the public credit, no instance is known
where the holders of these savings depOsi
bonds ever lost Il cent by their depreciation
A like perfect security against loss can anC
would be counted upon with the utmost conf
dcnce in this country.
OF course such system could never be dis
turbed by the discrctitabe scenes so often wit
messed under the savings bank system Of a run
on the bank, with its attendent panlcs, indi
vidual distress and business disasters. Tho
amount at any time in the hands of the post
master would be small, consisting of only
enough to take care of the few certificates no,
converted into bonds. Instead of Il run, the
only Inconvenience the system is liabetomus,
arise from the possibility of sudden fall be
low par in the value of the bonds; but against
that simple provision in the law establishing
the system could give the government abund
ant power to provide. All in all, there seems
to be no good reason why congress should've
tate day to adopt the proposed postal savings
bank system.