The New York herald., 1878-02-05
Postal Saving. Banks.

| the last two years. that no movement Is
yet made in Congress to give our people the
benefit of postal savings banks similar to
| those which have been tor seventeen years
in successful operation in England. The
English Post Office Savings Bank act re-
ceved the royal assent May II, 1860, and
the Times said of it:-''The country will
| recognize at once the universal boon OF a
bank maintained at the public expense, Sc
cured by the public responsibility, with the
whole Empire for its capital, with Il branch
in every town, open at almost all
hours, and, more than ALL giving tair
amount of interest" The sanguine conf
dence in that benefcent institution thus
expressed at its birth has been more than
justified by the success of the experiment.
1t has worked so admirably in England as
to have attracted the notice and secured the
imitation of nearly every other civilized
country excepting our own. Within the
last six or seven years postal savings banks
have been established in France, in Italy,
in Germany, in Austria, in Belgium, in the
Netherlands and in the leading British col
onies including Canada, Australia and
New Zealand. An attempt is now
making to introduce them even in India.
| No other institution Of beneficence has
ever propagated itself SO wonderfully by
a simple demonstration Of its merits or done
so much good without cost to the benefac-
tors /; for it must be borne in mind that per-
feet security is given to depositors and hab-
its of thrift promoted among extensive peo-
pies. not only without expense, but even at
a small profit to the experimenting govern
ments The net profits which have accrued
to the English government from it's postal
savings banks since their first institution
had amounted to FL, 1O4, 531 up to the close
OF the year 1876.
In spite of the present apathy of Con-
gress we have no doubt at all that the sys-
TEN which is spreading all over the world
will also be adopted in this country. We
have never seen but one objection to it's in
PRODUCTION here, and that is q shallow
one It is said that the constitution
does not permit it. What can have become
of any mans senses who makes this asser-
ton while admitting the constitutionality
the postal money order system does not differ
at all from the principle OF postal savings
banks. In both alike the money Of the
people is received by the government, re-
ceipted for, insured and paid back on the
order or demand of the depositor. How
can it be made to appear that the
government may take charge of the
peoples money for transportation and not
for safe keeping? But the government does
become depositary of peoples money for
safe keeping. What else is the system
of gold deposits and gold certificates?
What else is the like arrangement for the
deposit of greenbacks? We should like to
see the argument by which it is proved
that the. constitution permits the govern
ment to take custody Of the money of the
rich but forbids it to receive and pay back
deposits of the poor. Postal savings banks
would meet a great popular need, and we
must soon have them.
The measure proposed by Secretary Sher-
man is not adequate. The extension to all
parts of the country of facilities to purchase
four per cent government bonds in small
amounts is all very we'll, but it does not
meet the popular necessities. 1t satisfies
only one-half of double requirement, CIV
ing perfect security indeed, but depriving
the investors of command of their money.
What the laboring classes need is security
above oil things, but they also need to have
their savings where they can readily draw
and use them to meet unexpected and ex-
pected occasions Small government bonds
would not answer that requirement They
are suited for permanent investments,
but the prudent poor are tn no
condition to make permanent investments.
The chief toiler of the family may be dis
abled by sickness or may lose his situation;
"a sudden death may subject him to the ex-
penses of funeral the marriage of
daughter may require small outfit;
member of the family may have to be sent
on journey for health or a heavy doctors
bill have to be paid at home q drayman
may lose his horse or a gardener his COW.
The accidents Of life must be provided for
in whatever unexpected shape they may
come, and then the expected occasions are
of constant recurrence. People of mod
crate earnings need to save money for rent
day, for the purchase Of winter or summer
clothing when those seasons approach,
for Christmas gifts, for pew rent in
n church, for personal ornaments for wife
or daughter, for a summer excursion or
winter ball, if it can be afforded. For any
of the occasions in the list of ordinary, or
in the list of extraordinary, expenses four
per cent bonds would not be a convenient
resource. They could be suddenly sold
only at heavy shave which would
consume the interest for a long time. If
they were pledged for loan the loss and
bother would be equally great. After run
ming about to find lender the owner of O