The Sedalia weekly bazoo. [volume] (Sedalia, Mo.) 187?-1904, 1878-03-19
POSTAL SAVINGS BANKS AND
BONDS.

POSTAL SAVINGS BANKS AND
BONDS.
TIE attention of Congress has been
turned in an unusually profitable d.
rection in the consideration of the
best means of affording a secure in
vestment for savings of small amount
in individual cases, but amounting to
large sums in the aggregate. The
American people have in the past
been conspicuous for lack OF frugali-
ty and a disposition to spend money
freely as fast as it was made, and trust
to luck for the future. This tendency
has been encouraged by the want of
safe and convenient investments for
small sums, such as the people Of
many less advanced nations possess.
Savings banks have in too many in
stances proved mockery and q dela-
sion, and the American disregard of
small things has been conspicuously
shown in the absence of any provision
by which the government could avail
itself of the results of the economy
and thrift of the masses of the peo-
pie, even when it was urgently in
need of advances, and prepared to
pay a high rate of interest for large
sums from abroad. The hard times
have taught the virtue of frugality in
a way in which it was never inculcated
before. The example of France ex-
Treating herself from her Indebtedness
to Germany by appealing for popu-
lar loan, in which "the smallest con-
tributions thankfully received, has
shown how much can be accomplished
in this direction. The proposition at
present before Congress for the estab-
lishment of Postal Savings Banks is
clearly a step in the right direction,
whatever theoretical objections may
be raised as to the governments ex-
ceeding its proper functions. 1t
is the function of the government
to do anything that will add to the
prosperity and advance the true
interests Of the public. The
bill drafted by the House Com
mittee on Banking and Currency,
authorizes the receipt of money on
deposit at all postofices having money
order departments in sums not less
than twenty-five cents, of which &C.
count will be kept in passbooks, as in
ordinary savings hanks. No interest
will be allowed until the sum of len
dollars has been accumulated, when
the deposits may be converted into
postal savings bonds, which are to be
issued in denominations of ten, twenty,
fifty and one hundred dollars. They
will bear interest at three and sixty
five one-hundredths per cent. per an
mum. The postal savings bonds are
in turn convertible into ordinary four
per cent. bonds. The merit of this
system is that it offers absolute securi-
ty to depositors. and will inspire con-
fidence which in too many localities is
lacking, 80 far as savings banks are
concerned, and with just reason. The
scheme is to be commended moreover
on broad grounds Of public policy, as
giving a large class of the people a
direct, tangible interest in the main-
tenance of the national credit. It
will convert the thrifty laborer into a
''bloated bondholder" on a small scale
before he is fairly aware of it, and
from the moment he begins to acquire
property OF this description his sympa-
thies will be instinctively ranged in
favor of law and order. 1t is not
probable that the scheme will be &C.
cepted without some notifications, as
other plans have their advocates. The
bill that has passed the Senate in favor
of the issue of 500, OOO, 900 in coupon
bonds of the denominations of s25.
$50 and 500, with interest at four
per cent, though independent of the
Postal Savings Bank measure may not
im2robably modify the latter, as its
is in the same direction.