National Republican., 1877-08-31
HOW TO ENCOURAGE ECONOMY.


The immediate cause of the increase of
capital is saving. However industrious
people may be, unless they save and store
up part of what they earn, capital would
never be greater. In order that the mate
rial prosperity Of country may be devel-
sped In healthy manner IL is necessary
that the people should be induced to save
part of what they earn by their industry.
In order to encourage such habits Of thrift
and economy IL is necessary that they
should have facilities afforded them of iu-
vesting their surplus earnings in such
manner that they would be safe, aud ut the
same time earn reasonable amount Of in
terest.
The failure Of numerous savings banks
and the disclosures which have been made
ss to the reckless and extravagant manner
IN which those institutions are generally
managed have made it very clear TO all in
telligent persons that s)me new system will
have to be devised for affording the people
The means of investing their surplus earn
ings so that they will be safe, and at the
same time pay reasonable returns in the
way Of interest. Now II so happens that
while the people have large sums Of money
which they are seeking to invest in some
ME way, the Government of the United
tate of common sense that the Government
should not borrow money Of foreigners until
II has exhausted the resources of our own
citizens. There is no telling how great the
capacity of our people to respond to the call
Of the Government for funds is. II is quite
certain that by the use of judicious meas
ures considerable portion Of the national
debt might be transferred to the hands of
our own citizens as q popular loan.
How, then, can the money which the peo-
pie have to loan he gotten into the Treasury
Of the nation2 We know of no better plan
than that adopted by the British Govern
ment Of establishing savings banks in con-
nection with the Post Office. The plan has
mceeeded well In England, and although
The rate of interest paid depositors is only
Two and one-half per cent, the deposits at
present amount to nearly two hundred mil
hons of dollars.
1t is significant fact that England was
Induced to adopt the system Of post office
awnings banks by series Of disasters to her
regular savings banks, which happened be-
tween 1S49 and 1857, very similar to those
which have destroyed public confidence in
sach institutions in this country. A great
number of frauds and deialcatious in these
banks having aroused the English people to
fhe necessity of providing some substitute
Tor them, Mr.. GLADSTONE, in 1861, carried
bill through Parliament by which savings
hanks were established in connection with
the post office. The system rs more than
fulfilled the advantages claimed for il by its
advocates.
In carrying this system into practical
sfect the depositors might he furnished
with certificates of deposit bearing interest
Or with Government bonds, as they might
prefer. The funds which the Government
would receive from this source could be in
vested in the four per cent. bonds. 1t would
not be long until considerable portion OF
the national securities would be held by
the people, through the instrumentalty OF
this agency which would bring them within
the reach Of the humblest and the most re-
mote citizens.
The popular character of this measure
should not be overlooked. The Govern.
nent already receives on deposit the gold
and the greenbacks of the rich. Why
Should 1t not 20 one step further, and take
charge of the savings Of the poor and tht
humber Many thousands of this class o.
people are happy and contented to-day in
England because the Government has the
custody Of their hard-earned savings, and
punctually pays them their interest. Why
should we compel our citizens to continue
70 entrust their savings to banks in which
they have but little confidence, and which
may at any time by mismanagement OIL
fraud sweep away the earnings of "a life
time? Our Government should, in its prac
tcal operations, not be less beneficent thar
that of England, for there can be no ques
ion but that the Post Office Savings Bank:
are great blessing to the people of that
country.