The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1877-09-13
A Wise Suggestion.

The Washington Republican, OF the Sd, in
discussing the proposition of establishing a
new character of Savings Banks, based upon
government credit, has the following perth
nent remarks. Our own people will appre-
clate the necessity of some safe and reliable
depositary, as many of the industrial class
Of this community have felt the disappoint-
mcnt resulting from insecure institutions of
this kind. The Republican says:
There can be no question as to the expe-
diency Of enacting law by which the peo-
pie would be enabled to invest their surplus
earnings in Government bonds. Mr.. KEEL
ley's plan of interconvertible bonds would
secure this end, and could, no doubt, be
adopted, provided the greenback part of his
theory could be SO modified as to meet the
views Of those who are in favor OF an early
return to specie payments. The fact that
his scheme makes popular loan the basis
of our financial system adds very greatly to
its wisdom, for it thereby furnishes the in
dustrial classes with an opportunity OF Sc
curely investing their surplus earnings with
the certainty of receiving good rate OF in
terest on them.
But the duty of the Government would
not end here. In every community in all
parts of the land there are a number OF per-
sons who, under the noble impulse OF provi-
ding for the future, are continually striving
to lay by part of what they earn. These
persons are the patrons of the savings banks,
Of which, alas, they become too often the
victims. For the benefit Of this class OF citi-
zens the nation needs post-office savings
banks similar to those which the. wise policy
of the English Government has established.
If such banks were created and interest at
the rate of 1865 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 syndicates to sell
our bonds to foreigners.
The advantage of fixing the rate OF inter-
est at 1865 per cent. is that that rate amOuhCs
to cent day OH $780, and computations
could be readily made by depositors OF the
amount due them at any moment. Apy
sum not less than one dollar ought to be re-
ceived, and thus vast majority OF the peo-
pie would have direct interest in the sta
bility Of. the Government. The measure
would likewise greatly promote habits Of
thrift and industry among the people, for the
assurance of safety would increase the mum
Der of depositors, for nothing encourages
the accumulation of property so much as the
| feeling that the fruits of labor will be secure
when acquired. l4I.
There is great need for speedy action ii
| regard to this matter. The recent failure o.
| savings banks at Chicago, St. Louis, New
York, Brooklyn, and in various parts O
New England have completely destroyed
confidence in them. Nor is our experience
| confined to recent times. The failure OF the
Freedmen Bank is fresh in the minds o.
| all, by which that unfortunate race lost three
millions Of the first fruits OF their free labor
The bankruptcy of savings banks forms
mournful chapter in the social history OF ou
Republic, from the earliest days down t.
the present. The catalogue OF such institt'
tions which have failed, with losses agsrega
ting tens of millions of dollars, is poten
argument in favor of the adoption OF polio:
which would save the people from all slml
lar calamities in future.