The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-09-12
4nI,n1ol1d 1lspatth.
WEDNESDAY SEPTEMBER -. 1877.
The Postal Savings Bank

rations OF frauQuicnt savings pahns, WIN"
are ostensibly their advocates. This COM
munitv needs an assured place OF deposit,
and the country will do much to maintain
public virtue and contentmcnt by giving
them Just such place.
Confusion seems to have arisen amongst
some OF the advocates OF postal savings
bank to meet the wants OF this hardwork-
ing and simple community. rms contu-
sion ia entirely with reference to the queS-
,;op whether Government bond shall be
;ssned TO such depoSitors or whether the de-
nosits shall be received and entered, the de-
posi,ors receiving only an evidence OF their
deposit, emitting them to claim and receive
the same when they may desire to do so.
There should be no confusion at all upon
this point. An humble laborcr or trades
man wants to put his money where it will
be safe. and where it can he had when he
wants 1t. lie does not want Government
bond in lieu Of it. for that would be liable
to be stolen and lost TO him: and to avoid
such loss, he desires to put his money IN
safe hands. Nothing will suit him and
debt, with interest thereupon from the
time OF deposit until the sum deposited is
needed. That would be entirely satisiac-
tory, and that is what he ought to have.
No bond, no 500 intcrconvcrtible. will
answer for such deposition. lie must be
furnished with the evidence OF his deposit
that will enable him to Withdraw it when
ever his necessities may require him to do
so. Certainly, with the example OF Eng
land before them, Congress might frame a
bin for such an institution as will secure to
the poor depostors their small earnings.
But there is class Of depositors who
might find the interconvertble 5.G5 bond a
very useful security. That class Is COM
posed OF those who have more than one num-
dred and twenty-five or two hundred dol
lars to deposit. Such persons might with
draw their deposits and invest them in the
interconvertible bonds. or registered or
unregistered small bond, that might or
might not be permitted to circulate.
II the laborerS and small dealers OF the
nation were permitted in this way to invest
their gains in Government securities OF
small denominations great part OF the pub
lie debt would be in few years absorbed
bv them. Thus the lower stratum Of socl-
ety would be made conservative through
their direct interest in the Government. a
law that would give the common people
this opportunity. aud at the same time hedge
around the Government and the country
with safeguards against 4 disturbance OF
the circulating medium, would be inyalua-
Bile as promoter OF the public welfare.
II the bond to be issued as al absorbent
OF small gains We're made circulating me-
dunn, any bad effects from its excessive Is
sue might be counteracted by provisions
that would require the calling in OF circu-
lation and diminishing the public debt i'll
other forms. The deposits in England OF
the small gains limited at 1925 amounted
last year to about $40, 100000. 1t is evil
dent that in this country the same kind OF
deposits in postal savings banks would be
quite sufficient to absorb the $500, 000,000 OF
siS-per-cent. gold bonds now outstanding
and liable to be called in at the pleasure OF
the Government. A law which would re-
quire the investment OF the deposits in
these bonds would be the means OF saving
large sum to the Government.
There can be no difficulty about arranging
the postal system unless, as is too often the
case, in this unfortunate country, power
full ring should be formed OF those whose
interest it is to keep in their hands the con-
troll OF the small deposits OF the laborers and
small traders. We trust that Congress
would deem it their duty to protect this
community of small depositors from these
wolves. This the Congress can easily do If
it feels disposed to perform work which is
demanded both by humanity and justice.
AS we say above, it is easy for Congress
to authorize the issue Of bonds of small de-
nominations, through which the poorer
class Of citizens may become investors in
Government bonds. The placing Of them
in the relation Of creditors Of the Govern
ment would elevate them in their own re-
spect and improve their moral force IN the
body-politic. These small bonds may be
suited to the circulation, and in that case,
as we say, the. counteracting provisions may
readily be incorporated in the law. e., the
counteracting provisions that are necessary
to protect the country against redundant
paper currency. II we but look at France,
and see what powerful auxiliary to the
public credit was found in the issuing OF
the small bonds to the people, we capnot
fail to appreciate the great advantage this
nation would derive from copying the
French example. The wonderful success
that attended the scheme Of THEIRS to
raise the means OF paying the enormous
German indemnity is a brilliant illustration
OF the value Of admitting the poor people
to the privilege OF showing their confidence
in the Government.
The American nation in this critical pc
riod, when the humber classes are begin
ming to show discomfort and are eliminating
themselves, as it were, from their proper So
cial relations, has splendid opportunity to
Undue that class with the best feelings and
the true ideas Of community by protecting
them from fraudulent institutions by becom-
ing the custodians Of their small and hard
earnings, and also Of inviting them to become
creditors Of the Government by issuing ma
tional bonds Of small denominations, in
which they could invest their little money
with perfect assurance that they would
never lose anything by thus disposing OF
their treasure