Evening star. [volume] (Washington, D.C.) 1854-1972, 1878-03-09
Postal Savings Banks.

How to take care of earnings is almost as
important a question nowadays as how to
earn. He who loses all the fruits of his labor
is only less wretched than the one who can OBJ
tain nothing to lose. 1t is proposed now to
make the poor man secure in his earnings by
the establishment of a system of postal saw
ings banks Small deposits are to be received
at money order post Offices; when they accu-
mulate to the sum of $40 they can be converted
into a 800 government bond, and when
amounting to so into 4 per cent bond
These deposits then are kind OF government
loan. and are made, Constitutional by the sec
ton Whlc1SlVes government power Ito Dor
r0&~money OH the credit of the United
States" The collapse in the savings bank
system Of this country within the last two
years. and the distress and ruin ensuing, cause
the proposed plant be received with conSid-
cradle favor. and will probably insure its adop-
ton: just as similar condition of affairs
caused the establishment in 1861 of the Eng
liSh system of postal savings banks. from
which the idea of the present plan is derived.
The advantages of these postal banks which
have commended them in different forms to
England and her colonies and most of the
leading states of Europe are obvious. Also
lutte security, with small interest on earn
iGgs. is provided for depOsitOrS. They can
regain their principal either at home or in any
city where these is money order office, by
the English system. They can effect with
drawal OF deposits by the sale of bonds under
the proposed plan. A popular loan is created
whose interest goes to the people; the effect of
which is to make every Iaboring man u
"bioated bOndhOlder," to give him lively in
tere>t in the credit of the government, and to
cause him to perceive, with conscience
quichCned by interest, the evils of repudia-
ti0H. But there is no reason to believe that
these banks Will kill the ordinary savings
banks The latter, If properly regulated by
law offer some cnnvenienceS which will
Away Cause them TO flourish in spite
oi the decreased security they afford.
Since the English postal banks became fairly
established, the per cent. of increase in their
deposits has not been so large as that of the
ordinary savings banks: and this fact suggests
that, after all. the most advisable course might
be to reform our present system 50 as to give
greater security TO depOSitOrS, rather than to
experiment with new plan. But the old and
the new can, each in its appropriate sphere
operate btnefcially. The higher rate OF inter.
est which the ordinary savings banks are en-
abled To offer in seasons of prosperity. and the
advantages they present over the new banks
in the convenience with which deposits NAV
be reclaimed will attract to their vaults money
which Is liable to be wanted at any moment,
but which the owner thinks may as well be in
creasing in his possession. The postal banks
viii be the depository of small. and compare
lively permanent investments, to which con-
slant additions are made. The English system
OF postal banks is superior, in many respects.
to the plan likely to be adopted by Congress:
yet, as We have SEEN the ordinary savings
banks have not been superseded in that coun-
try. Ii is not necessary, then. to suppose that
the House bill on this subject is measure
hostile to savings banks, which, when properly
regulated by law and well conducted, are. and
will always be of great usefulness