National Republican., 1877-09-19

reason or other no action was ever taken respect
ing IT, The nrgumcnt now submitted for the anop,
ton OF system similar 10 the one above described
Il that the private savings banks now In existence
arc located mainly In large cities and In the centres
Of the mechanical and manufacturing populations,
These banks afford no substantial security TO the
people, whose deposits OF their savings, according
to statistical reports, aggregate 81 ,HD0O,6n
IN mrtheranee of the theory u is argued that INC
sik per cent bonds and sos OoD0p Of five per cent.
bonds outstanding, The Government can oiiet 10
NC owners Of these deposits TO receive the sare
and pay them 3,6o per cent Interest which
taking the character ofthc security Is better in.
ycStmcnt than the higher rates offered by private
institutions, any one Of which may nj any time re.
peat tho robbery perpctrated by the state savings
Institution. The Government has its bonds out
standing in the hands ofpcope in all parts Of the
world. To take up part Of these bonds, say one
third or onc-half by Issuing the loan at lower
rate Of interest to large body Of our own people
thereby making the public debt local instead OF a
foreign one, certainly can be no departure from
the Legitimate and constitutional functions OF the
Government II will he q more change OF credi-
tors, accompanied BY reduction Of the rate Of in
ment VIII be ~ receive this money, keep II until
called for and pay interest thereon at the rate Of
nths way the difference between the 365 per
cent. interest allowed to depostprs and the six per
cent now paid by the Government ~ tue hoidrrs
Of that class OF bonds would be ~ per cent. This
difference would be largely In excess Of the amount
required to meet the increased postal expenditures
made necessary by the adoption of such measure
amount to lie appropriated was but sslOO.
II Is claimed that this measure Is not mere ven
turc, and as an evidence of Its practicabtty refer
encc IL made to the English system of post Office
savings bank, inaugurnted several years age. Cn.
der this system the postmaster at all post offices OF
certain class Is made the Government agent oil
the savings bank. lie receives all deposits giving
book or certificate. or entering " In pass-book
Of the amount received: The money forwarded
TO the General Once In London where 1t isinvcsted
In british coisols, bearing three per cent There IL
paid to the deposition AZ per cent interest AZ the
end OF 1876 there were on deposit about slS,uOIWe
In these post Office banks. The difference between
> and az per cent Is the estimated cost Of the ell
tire system.
II Is claimed that while the establishment OF the
postal savings bank system In this country would
work innumerable benefits TO the working people
and tend greatly 70 reduce paupcttsm by encour'
aging economy aud saving among the lower classes
y would also be productive Of good to the General
Government for the difference OF the Interest now
paid upon Government bonds In foreign markets
and The 3.65 per cent to bo allowed TO depositnrs
would be 70 great rs TO enable the Government
after paying the cost Of the postal savings banks, 70
gradually reduce its debt by calling In portions OF
those bonds with the surplus money, or course i
Is not intended TO use the entirc amount OF de
posits for investment In these bonds but the Coy
crnncnt could follow the principles OF saving'
banks generally. aud arrive at an estimate of the
average deposits on hand exclusive Of the with
drHwals.
Another theory Is that the Government by with
drawing the six pcr cent. bonds. could issue small
bonds. say for $50 or SiO0 each bearing interest Al
36S per cent, which any person could purchase a.
his deposits increase by simply turning In his Ger
lieu thereof one OF the small bonds, which woult
insure the safety Of his investment, with interest
| as long as the Govornment lasts. The matter
now receiving general attention, and there Is litt
doubt but that II will be one OF the importan
measures before Congress during the coming ses
sion.