National Republican., 1877-09-03
SAYINGS BANKS FOR THE PEOPLE
IN. ,ollonrc Of the State Savings Institu.

SAYINGS BANKS FOR THE PEOPLE,
The collapse Of the State Savings nstitu-
tlon Mt Chicago q few days ago, in which |
the industrial classes Of that city had seve-
ral millions Of dollars deposited, has again |
directed the serious attention of the public |
10 the necessity of devising some plan by |
which secure savings banks can be pro-
vided for the people. Nothing demon |
strates the necessity for such institutions |
80 well ~ the fact that the people continue |
70 patronize them, notwithstanding the |
fact that they have had very disastrous |
history. The failure of hundreds OF such |
institutions, both in this country and in |
Europe, has not prevented laborers from in |
trusting their earnings to these unsafe
trustees. II has, however, been matter
Of necessity with them rather than Of choice,
for the Government has neglected to pro-
vide them with secure savings banks, al
though II has been in its power to do so.
But the time has come for putting an end
10 the outrageous swindling which so-called
savings hanks have long inflicted upon the
industrial classes. Ournational debt affords
. ready means by which absolute security
can be provided for the surplus earnings Of
the people. The feeling upon this subject
n now no deep that we doubt not but that
some action will he taken in regard to II by
the next Congress. II docs not require q
very profound knowledge of political econ
omy 20 understand that Il will be far better
for the nation to borrow money from our
citizens rather than obtain it abroad and
pay the interest to foreigners. This end
can be obtained by gradually placing con-
siderable PORTION Of the national securities
In the hands Of our own people by means Of
interconvertible bonds
The people Of all parts Of the country
have been made very familiar with the
theory of interconvcrtible bonds Us advo-
Gated by Hon. WILLIAM d. KELLEY, and
although his plan contemplates the use Of
greenbacks as the money OF the country We
do not see but that II might be modified 10
o. to use Hny kind Of lawful money which
may for the time being he the established
circulating medium under the laws of Con-
gress. There Ii no doubt but that 1t would
hnve been well to have adopted years ago
the method Of obtaining money by means
Of popular loans through interconvertible
bonds Had the plan advocated by THAD-
DEUS STEVENS been adopted nearly all our
bonded debt would now be held by our own
people He showed very clearly, in sspeech
which he made on the subject, how lin
tied issue of legal-tander notes might be
made to absorb the bonded indebtedness OF
tho country through conversion and recon-
version. His theory contemplated the use
Of greenbacks, but it Is equally applicable
TO any lawful money which may be In ac-
taal circulation among the people from time
to time.
There can be no question as to the ex-
pediency Of enacting a law by which
the people would be enabled to invest their
surplus earnings in Government bonds.
Mr.. KrLLEY's plan Of finterconvertibls bonds
would secure this end, and could, no doubt,
be adopted, provided the greeuback part of
his theory could be so modified rs to meet
the views of those who are In favor Of an
early return to specie payments. The fact
that his scheme makes q popular loan the
basis Of our financial system adds very
greatly to its wisdom, for 1t thereby fur
hishcs the industrial classes with an oppor-
tuaity Of securely investing their surplus
earnings with the certainty Of receiving q
good rate Of interest on them.
But the duty of the Government would
not end here. In every community in all
parts OF the land there are number Of
persons who, under the noble impulse OF
providing for the future, are continually
strivinG to lay by part Of what they earn.
Thass persons are the patrons Of the
savings banks, of which, alas. they become
TOO often the victims. For the beneat Of
this class Of citizens the nation needs post
office savings hanks similar TO these which
the wise policy Of the English Government
has established II such banks were
created and interest at the rate of 3.65 per
cent. paid to depositors, vast sums would
soon flow into the public treasury from
this source, and it would no longer be
necessary to hire syndieates to sell our
bonds to foreigners.
The advantage of fixing the rate of inter-
est ut 3,85 per cent. is that that rate
amounts to cent day on 800, and COM
putations could be readily made by deposit
tons OF the amount due them ut any mo-
,ment. Any sum not less than one dol.
lar ought to be received, and thus
vast majority Of the people
would hayes direct interest in the stabil-
ity Of the Government. The measure
would likewise greatly promote habits Of
thrift and industry among the people, fol
number Of depositors, for nothing enoour'
ages the accumulation of property 80 much
rs the feeling that the fruits Of labor will
be secure when acquired.
There Ia great need for speedy action II
regard TO this matter. The recent failure o
the savings hanks At Chicago, st. Louis
New York, BROOKLYN, and in various part
Of New England have completely destroyed
confidence in them. Nor Ia our experience
confined 10 receni tiInes The failure Of tin
Froodmen's Bank is fresh in the minds o
all, by which that unfortunate race los
three millions OF the first fruits of their fre'
labor. The bankruptcy of savings bank
forms mournful chapter in the social his
tory Of our Republic, from the earliest day
down to the present. The catalogue of sue
institutions which have failed, with losse
aggregating tens Of millions Of dollars, is
potent argument in favor of the adoptiO
of a policy which would save the people fror
all similar calamities In future.
EXECUTIVE COETROL OYER CIII
SERVICE REFORM