The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-09-03
Substitutes for Savings Banks.

We have called attention 10 tHe aullliiapie
system of savings banks connected with the
post-ofiice in England, which has borne the
fest of time with extensive operations. The
history OF savings banks in this country has
demonstrated the necessity OF some other
system for the protection OF the people.
The last Chicago Times Zone OF the ablest
of newspapers contains an article on this
subiect. 1t is so truthful and practical that
we copy it. 1t contains suggestion that
deserves attention that with regard 10 the
issuing OF bonds OF 4 small denomination
by cities as well as States. This suggestion
needs consideration as to the moduS ope-
rand; OF the operation and the proper
means OF protection for the public against
oyer-iss ues and frauds. But clearly there
ought not to be any objection to the issue
bv Government OF 3.65-100 intcr-convcr-
tiblc bonds of small denominations.
See what the Times says:
POPULAR SUBSTITUTES FOR SAVINGS BANKS.
The existing. system OF savings banks in
Illinois is q bad one for both deposltorS and
for stockholders whose intentions are hon
est. Competition is so sharp that, to get
patronage enough to pay expenses, mana
rers will offer rates Of interest which cannot
honestly be paid, and the attempt to pay
which must sooner or later end III disaster
foral except the big thieves whom tue law
protects against criminal prosecution, and
who can escape even civil suit by being
sufficiently adroit in the transfer OF their
property to relatives or agents. 1t Is q
1,4,. tshY
do an honest and legitimate bust
ness. for even the thirty or sixty
dav rule cannot save them from the danger
OF run inspired by rumors or by caprice.
IJnthinklng depositors cannot comprehend
that banking business cannot be carried on
if every dollar they deposit is kept in the
vaults, to be paid out whenever they choose
to call for the cash. Their money must be
employed in whatever way it will pay ~ a
protit to the managers Of the bank, ~ q
profit to the stockholders, (3) profit to the
depositors. The general shrlnkage IN all
values marks the epoch Of decay in savings
banks on a system which has proved sue
cessful in prosperous times under careful
and honest management.
What shall take thdslace of savings banks :
AGoyernmenttw enty-tive-dollar bond earn
ing four per cent, obtainable without mid
clemens percentage or syndicate-taX, at the
United States sub-treasuries or depostaries
and. in the cities where there is neither Il
sub-treasury nor depositary, at the money
order department OF the post-oftice. There
could be no more Inconvenience or diff
Guilty in delivering such bonds than in sell
ing stamps.
John Shel man should make the issue OF
the popular bond one OF the prominent fea-
| lures of his policy. No opposition will be
offered to it in Congress. Our people will
be glad to take Government securities If
they can get them in denominations within
their reach, and they have right to be per-
mitted to obtain as the reward of their fru-
gality and self-denial the interest now
Shipped abroad. Let us have the popular
bond as one remedy for the correction OF
the evils Of the present savings-bank sys-
tenn, and as protection for the thrifty poor.
There is not single good reason why the
rich man alone should be allowed to invest
in national securities. The workingmen Of
France are glad to buy ten-dollar securities
from their Government, and the Govern
ment is glad to sell. A twenty-tive-dollar
| iour-per-cent. will be as good an accommo-
dation for our laboring people, and 1t should
| be placed within their reach rs soon as
practicable.
The government of the city OF Chicago
can also take advantage OF the crisis in
savings deposits. The funded debt OF the
city-at least, the bulk Of it, say ten mil
lions-can be refunded in such manner as
will accommodate the class who have hith-
erto patronized savings banks and will pa
tronize them no longer. A four-per-cent'
city bond Of ten dollars can be issued, which
will be double blessing-it will afford a
sound investment for small earnings, and II
will enable the city to reduce the amount OF
its interest burden nearly one half.
The issue of popular ten-dollar city
bond would infuse new inspiration into
the people. The investors would feel COM
PEELED to exercise more vigorous scrutiny
| in the selection Of persons to administer
municipal affairs. This alone is sufficient
reason why such bond should be issued.