The Jeffersonian. [volume] (Stroudsburg, Pa.) 1853-1911, 1877-01-11

and regulation Of banks Of deposit aud dis
count. The provisions of the act are in
harmony with the principles set forth in
the annual messages Of 1874 and 1875.
The effect of this law, when the loose char
ters so freely granted in former years shall
have expired, viii be to keep banks in their
proper sphere as clearing houses for bust
ness transactions and for exchanges, and
the instruments for collecting the temper
arily unemployed capital Of business men
and re-distributing it by loans and dis
counts according TO the wants Of trade. 1t
will create mutuality of interest between
the banks and their patrons, which will
prevent the removal Of large amounts of
capital to money centres for speculative
purposes and force loans to- local enterprises
for legitimate business purposes at reason
able rates of interest. Business men, for
obvious reasons, will be the dcpositors of
these institutions. The savings of the peo-
pie, which have been attracted by the lure
Of interest on deposits, will be diverted to
other institutions, managed upon different
principles, and having in view different
object.
To provide for that contingency, and as
a complement to the act of May 13, 1876,
L recommend the passage of an act for the
incorporation and regulation Of savings
funds, prohibiting them from becoming
banks Of discount, and confning them to
their proper object-the safe-keeping of
the savings of the people The deposits of
such institutions should be made as inviola-
bic as trust funds in the hands of trustees
The mercenary spirit and desire of gain
should be taken out of their management,
so that only men of the purest motives and
highest integrity will become managers and
directors of them. The salient features of
a law that would commend itself to my
Judgment, are these: There should be no
stockholders expecting a return for capital
invested the corporators should be men of
character and standing, having no pecuniary
interest in the business. The amount to
be deposited by one individual in any one
year should be limited. The investment
of deposits should be restricted by law to
Erst-class securities and measures taken to
have this provision strictly complied with
Quarterly statements should be required to
be published. The interest paid to deposi-
tors should be limited in general to about
four per centum per annum; the balance
of interest arising from investments would
be used to pay salaries and other running
expenses, and to create surplus fund to
provide for extraordinary depreciations and
expenses. The surplus fund might be
limited to certain percentage of assets,
allowing the board of directors or trustees
to increase the rate of annual interest when
ever the surplus sufficiently exceeded such
proportion. Owing to the permanent
character of the investments, a certain
small percentage of deposits might be set
apart for current business, and all depcsi-
tors should be required to give a reason
able notice of their intention to withdraw
money from the funds. In New York
sixty or ninety days are SO given, and in
the institutions chartered in Pennsylvania,
only fourteen days. In ordinary times the
latter limit Is perhaps sufficient, but in
panics, when extraordinary depreciations in
the market value of all securities take
place, the interests of the depositors would
be best secured by the longer limit.
/ am aware that law of this character
has not the stability or certainty of one
founded upon mercenary interests. The
philanthropy of men is a fuctuating quality
their self interest is a constant and steady
force. In SO far as it IS purely beneficial
such law may be regarded as expert
mental \ somewhat similar law exists il
| New York and most of the New England
States, and one or two institutions have
been chartered in Pennsylvania upon these
principles. Practice has proven the wisdom
of such legislation. | am satisfied 1t!
results will be beneficial In these days o
noble public and private charities, it is no
unreasonable to hope that men of iutegrit,
and standing, in every community, vii
lend the sanction of their names and civ,
the modicum of time required to a schem
for improving the condition of the indus
trious and deserving producers Of the couu
try.
EDUCATION AND SCHOOLS.
The reports of the Superintendent o
Public Instruction will exhibit the educa
tional progress of the year. They testif,
| SJTOll1l1 W Jit iuCClCSI ItlI
the people in education and contain re
concentrations which are entitled to you
serious consideration.
Our school laws, the expressions Of
growing public sentiment, made from tim
to time, are mass Of fragmentary enact
ments, which it would be well to recon
struct in harmony with the wants of tn
community and the tendecies of the times
4 revision Of the methods and course o
studies plan for building better and i'm
proved district school houses, and create
control over the whole system that tn
State now has, are among the Changes tha
are desirable.
The first design of the common schools
was to furnish an elementary education t,
the poor The system has rapidly over
grown the original boundaries. 1t reaehe
into all departments of learning, profes
sional, Industrial, and artistic, and tn