The New York herald., 1878-03-07
Postal Savings Banks for tho Umited
States.

of such bonds would be no adequate sub
stitute for ordinary savings banks, but
the passage of bill authorizing such
bonds is OF considerable value as set
tling the constitutional question which un-
derlies the establishment of postal savings
banks. If the constitution permits the
issue of bonds for that purpose it must au-
thorize other and more efficient measures
for protecting the savings Of the industrial
classes. The principle of the proposed
bonds and the principle OF postal savings
banks are identical. There can be no we'll
founded doubt as to the consttutionality Of
either or both. They alike rest upon the
explicit provision which empowers Con-
gress 'to borrow money on the credit of
the United States" The money deposited
in postal savings banks would be loan
to the governments loan on which 1T
would promise to pay interest, and OF which
it would engage to repay the principal. Be-
yond its recognition of an important consti-
tutional principle we set no value on the
bill which passed the Senate yesterday.
The privilege of buying four per cent bonds
of small denominations brings no real relief
to the laboring classes, who have suf-
fered so severely from insolvent and rotten
savings banks The frugal wages-earning
classes are in no condition to make perma-
nent investments. They need to have their
money where it will be safe, but also where
they can always command it for unexpected
occasions. Invested in government bonds it
would indeed be safe, but they would lose
command of it. II the ordinary savings
banks were always solvent and al
ways honest they would be per-
fectly suited to the wants OF people
of small means. 1t is only the enormous
losses inflicted upon such people within
the last two years by the collapse of rotten
savings banks that imparts interest to the
action of Congress on this subject BY
passing bill authorizing bonds of small
denominations the Senate provides plaster
which does not cover the sore What the
people need is substitute for the
savings banks by which they have
been so unrighteously swindled. They
want safe depository for their
earnings combined with easy facilities
for Withdrawing and spending their money
in accordance with ever-recurring needs.
1t is only rich people who can afford to lock
up their money in permanent investments
and live upon the interest. The poor need
to keep both principal and interest within
their control to meet the emergencies of
their humble life. What they want is not
chance to invest in bonds, but some per-
fectly safe arrangement which will give
them the advantages Of an ordinary savings
bank.
1t seems amazing that the postal savings
banks system has made such slow advances
in recommending itself to favor in the
United States, when in most other civil
lied countries it has been so readily
adopted To England belongs the credit of
having been the pioneer in this great and
benefcent Improvement. 1t is not credit
able to the United States that instead
of being the first it is among the last of the
great States Of Christendom to recognize the
value Of postal savings banks. 1t appears
from an elaborate article in the British
Quarterly Rerieo that the most important of
the British colonies and most of the leading
States of Europe have adopted the English
system of postal savings banks. Why
should the United States be SO far behind?
It has been the boast of this coun-
try that it is always in the van
of progress; that, being fettered
by no obsolete traditions, it takes
the lead in improvements which benefit the
democratic masses. Nothing could bring o
more real advantage to the democratic
masses than an opportunity to invest their
savings where they would be absolutely
secure, where they would receive reason
able rate of interest and where the princi-
pal could be withdrawn at pleasure to
meet the occasions of the depositors
and save them from the tender mer-
cies of extortioners. 1t is wonder
full that the United States, claiming
to be, par excellence, the nation of progress,
should have Jagged so far behind in the
savings banks. Postal savings banks have
not only been adopted by all the leading
English colonies-Canada, Australia, New
Zealand-but by Belgium, by Austria, by
the Netherlands, by Germany, Norway,
Sweden, Brazil, Switzerland and even
by far off japan, where the post
Office savings banks system has been
adopted, and where in Yeddo alono
eighteen post Office banks were opened
in May, 1875. The slowness of the
United States may be explained by the con-
fidence felt in its ordinary savings banks
until within the last two years But the
recent widespread failures in these institu-
tions makes the establishment Of postal
savings banks not merely popular noces-
sity but burning question.
Tho present Congress has adopted, to
some extent, the views of the HERALD on
this important subject. We have lying be-