The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1877-09-13
Substitutes for Savings Banks.
The Chicago Times has the following

The existing system of savings banks in
Illinois is a bad one for both depositois and
for stockholders whose intentions are hon.
est. Competition is SO sharp that, to get
patronage enough to pay expenses, mana
GERS will offer rates of interest which cannot
honestly be paid, and the attempt to pay
which must sooner or later end in disaster
for all except the big thieves whom the law
protects against criminal prosecution, and
who can escape even civil suit by being SUI
flciently adroit in the transfer of their prop
erty to relatives and agents. IL is bad
system for bankers wishing to do an honest
and legitimate business, for even the thirty
or sixty day rule cannot save them from the
danger Of a ruin inspired by rumors or by
caprice. Unthinking depositors cannot COM
prehend that banking business cannot be
carried on if every dollar they deposit is
kept in the vaults, to be paid out whenever
they choose to call for the cash. Their mo-
new must be employed in whatever way it
viii pay ~ profit to the managers OF the
bank, (2) a profit to the stockholders, ~ a
rofit to the depositors. The general Shrink
&c in all values marks the epoch OF decay
in savings banks on a system which has
mr. owed successful in prosperous times under
ca, pful and honest management.
What shall take the place of savings banks
G overnment twenty-fve-dollar bond earn
ing our per cent, obtainable without MD
diem EMS percentage or syndicate tax, at
fine u nited States sub-treasuries or deposi-
taries: and, in the cities where there is Meth
or a 81, b-treasury nor ,depositary, at the mo-
NJ nav .or, Ter department of the post Office.
'I,here Ould be no more Inconvenience OF
dif,iculty. in delivering such bonds than IN
selling st amps.
| John s, herman should make the issue oil
the popu,aY bond one of the prominent fea.
lures OF his policy. No opposition will DC D.
offered to it in Congress. Our people Wi
he Glad to take Government securities Il
thew can get them in denominations within
their reach. and they have a right to be per
mitted to obi ain as the reward of their fru
calitv and selt-denial the interest now ship,
ned abroad. Let us have the popular bone
as one remedy for the correction OF the evils
Of the present savings bank system. ana a.
protection for the thrifty poor. There i
not a single good reason why the rich maj
| alone should be allowed to invest in natlona
securities. The workingmen OF France ar
| Glad to buy ten-dolar securities from thel
/ Goyernment. and the Government is gla'
n cell. A twenty fiye-dollar four-per-cent
:, i'll be as good an accommodation for GU
II Ioring people, and it should be place.
wi, hin their reach as soon as practicable.
WI r. Ne government Of the city of Chicag
CON ilso take advantage OF the crisis in say
mos = 'eposits. The funded debt OF the cit
ct 10 sst, the bulk of it, say ten millions
90 = he efanded ia such a manner as wi
oncomm, sdAte the class who have hthert
natron;ze. savings banks and will patroniz
them n,e no 10 niger. A fous-per-cent: city bon
W o ton ,1olla Is can be issued. which will be
double HESS, 'pz-.it will afford sound in
uest,nent for small earnings. and it will CT
able the city t, reduce the amouat of its il
terest burden n early one half;
The issue Of a popular ten-dollar city bon
would muse a n, w inspiration into the PEI
pie. The investor would feel competed
exercise more Wig orous scrutiny III .'o 81
lection OF persons to adminlstcr muE'e III,
affairs. This alone is suii'c,e''' r'ae"" Wi
such bond should be Esueo'