The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1878-01-12
nnsIAL sAvlAas BANKS.

In ylew Of the almost daily collapse OF
savings hank In western and eastern
cities. aud tho robbery Of depo'llors by !
the officers Of these institutions II lsnol
strange that tho question begins TO no
discussed, whether the Foy'
ornmcnt ought not 10 do moro Than u
hos vet done 10 secure safety ior the
pcople's savings lts evident from the
history Of these failures lhat even The
personal character and responsibility Of
The managers afford no permanent
responsibility or dolonso, Combines
lions are made and possession Of
u controlling amount OF the stock are
aoaurod, and in single day u new man
npomcnt Ia installed aud the money bee
longing 10 the depoaiors placed IN the
custody Of deliberate swlndles. II one
case be- in some respects a grealel lrhnd
than those porpolratod by NnolherS,
investigation reveals II h only because
the operators were greater Williams ana
their opportunities better The odop'
ton Of scheme similar 10 the British
postal Swings bank plan ~ being lorol'
bly, urged IN a remedy II Is
not proposed that the governs
mcnt shall establish u bank aud lend
out other peoples money bu, that the
government which has nearly two bills
lion dollars Of gold bonds outstanding,
shall offer to receive the savings dc,
posts aud invest them in ia own obi l.
cations, Tho government Is paying slX
per cent gold interest on SSllOOOOoO,
These bonds are held all over the world,
are subject to call, aud may be taken
up by the government at pleasure II
is proposed that the government shall
offer to the people of the country to re-
ceyc their deposits and pay
thereon interest Ut the rate OF
thrccsixty,liye per cent aud with
the money thus deposited pur'
chase or pay tho six per cent bond.
called in from time to time, 80 Ear M
the government il concerned the trans.
action would be merely u change Of
creditors, with u reduction Of interest
from the present rates to threc'slNty'
five per cent with tho cost Of manage
mont added, which in England at pres
| rnt IN less than Onc.hnl of one per
cent, The agency of the postolli'e il
claimed to be the best because il
extends the facilities OF making de-
posts to every town and village there
by charging the usefulness of the
savings bank and also facilitating the
payment of interest or principal, The
friends of the scheme hold, ns the gov.
eminent now receives on deposit and
| has in its vaults m average of eighty
to ninety millions of dollars OF
private money subject to call, for the
custody Of which it is responsible and
which it receives and pays ont without
interest to the rich, 80 it can furnish
vaults for the sat,keeping and be re,
-ponsiblc for and issue certificates IoI
the money Of the poor. The governs
mont now borrows money and pays in
tcreSt thereon to the couitalist
and it is proposed that the
government shall continue to
barrow money, subject to cali, pay
ing interests ON such balances as may
be left in its hands 10y the lahorcr and
arti2m, The plain is claimed to be of easy
operation, and in the main only an ems
INrgement of the postoIlico money order
systCm--the amount of money sent by
mail through the agency Of postal or
ders, while amounting to millions OF
dollars, is very insignificant compared
with that deposited with savings banks
Without endorsing the "details of the
scheme, TuE HERALD is free to say, the
Tact that the government offered nbSn
lutte security would operate TO compel
the private savings banks to maintain
honest management, lest their whole
deposits be Withdrawn. Tho uely ica-
'ure in the proposed plan is its tendency
to patcrnal power>-the exercise of au,
thorily over the business affairs of the
people,