The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1879-01-23


of balances on loan account Ia coin standing lC
the credit of the Treasurer of the United States In
National Bank repositories, on the lst of January
1879; the aggregate amount Of balances was N6
89Si6S The larger amounts were in the First Ma
tional Bank o New York, Sl9 946j NauOha
Bank the State OF New York, ElobOo4i sank OF
New York National Banking Association 70 9Sl oI6
All; Maverick National Bank Of Boston, ~ Sl2 WV
National Bank OF Commerce OF New fOrk, 22, s2 IL
928. Second National Bank Of New York VI 5l2526
Monument National Bank Of Boston, VSo OIL
The remainder is distributed among iOIy 'elgh'
banks in sums varying from SSOO 10 sSVOVOO'
NEW FINANCIAL MEASURE FOR THE SAVINGS OF
THE POOR.
Mr., Wood, Chairman Of the Ways and Means
Committee, reported back the Dill authorizing the
issue of certificates of deposit In aid OF retundng
the public debt. The bill authorizes the Secretary
ofthe Treasury to issue In exchange for lawful
money United States certificates Of deposit Of the
denomination of $40 bearing interest," at the rate
ofthree per cent, and convertible at any time
with accrued interest," into per cent, bonds, au
thorized to be issued, and directs that the money
so received shall be applied only to the payment
Of $50 bonds.
Mr.. Kelley (Pa) submitted an amendment 80 as
to make the certificates convertible, with &C.
crued interest, after six months, into lawful
money, and at any time into four per cent.
bonds
Mr. Wood called attention to the bill as intro,
ducing novel feature into the affairs of the Gov
eminent so far as the producing classes were con
cerned 1t would afford the poorer classes an op
portunity of in vestng their small earnings where
they would be safe and secure and not subject to
the instability of private corporations 1t was pro-
posed by this bill to make National savings banks
where they would be positive and absolute secu-
rity for every dollar deposited by the poorer class.
es, and the result of which would be to make
these classes OF people cO'partners in the Gov
ernment itself. Another eff ct Of 1t would be to
cement fraternal concord throughout the land.
Mr.. Kelley said the only provision in the bill
which was characteristic OF a savings bank was
that the Government would receive deposits as
low as $40 There was no other The United
States Government proposed to engage the labor
ing people in game Of chance Of which the law
was "heads / win, tails you lose" No laboring
man could have any benefit from the bill. 1t
would turn that class into game for Shylocks that
concentrated about the stock exchanges OF the
country Suppose poor man had deposited ten
dollars and found him unable to deposit more, he
would have to wait one hundred and twenty three
years and four months before he would be enti.
tied to interest That was the redemption propos'
ed by the United States when 1t establi'hed a saw
ings bank. 1t was said that the certificate might
be sold. What would a SO certih ate, bearing
three per cent interest, bring when a $50 bond at
four per cent. could be had for par, The laws ef
trade would put them far below par whenever
L., tbo hot tbo
savings bank offered the poor of America by a
magnSnmous government His amendmentpro-
posed that these certificates should be convertible
at the end of six months with accrued interest in
to lawful money. Without that amendment the
bill was a snare and trap for the poor and dis.
grace to the government; with 1t, the bill would
be safe for the people and bene6cent In effects on
pending operations of the Government The banks
said he were In favor Of the general provisions Of
the bill but If 1t went into operation its first effect
would be to induce depOsitors in savings banks to
withdraw their deposits, This would compel saw
ings banks to get ther securities. They must fore
close their mortgages and this foreclosure of mort
cages and sale of real estate would take from he
remaining depositors nearly the whole seCuri-
ty they now had IN sauings banks that were
sound
Mr.. Burchard said that though the bill was not
very Objectionable so far as it went, he should
prefer measure that had been reported last ses.
sion for the establishment of a Government Saw
ings Bank. He argued in favor of the latter mea
sure, and suggested that the pending bill wasl lack
ing In the very essential principle Of saving
bank system, and that was the removal from the
poorer classes Of the temptation to spend their
10 nd tho
proposed system would be convertible to mon.
ey, and would be liable to loss. destruction and
theft
Mr.. Butler opposed the bill as delusion and a
snare The effect Of it would be that the poor man
might spend day in every month in procuring a
$40 bond that when he got five Of them together
he might change them into four per cent bond,
AMI that for that privilege he would have spent
five days and would have saved Just thiry,hve
and one half cents in interest That was all there
was Of it, There was no element OF a savings
bank in 1t. II had no safety, az when the poor
man wanted money for his bond ne would have
to go TO broker and submit co shave greater
than the interest II there was anything else in it
he fsied to find it The object OF the bill was (he
intimately to withdraw greenbacks from circula-
tiOn for there was no way of paying them out
when received for this purpose. 1t would be a
further contraction Of the currency which had al.
ready depressed labor stopped business, and
brought the country to It's present conditions:
and the result OF tnat condition, which was
said to be necessary was the Heaven-horn
boon OF resumption at New York and nowhere
else
Mr.. Garfield said that the less legislation there
was on finance the better The country was get
ting on well and he would not favor any radical
change in the present. order Of the currency law |
Buthere Wasa bill that was greatly misunderstood
In the work OF refunding the present 81 cTetary of
the Treasury had abandoned the syndicate and |
invited all National banks markedly all depOsi |
tory banks) TO take hold of the work aud aid him
In nRrn dc fv,fa e.,
per cent bonds He now believed that he could
make the work Of refunding proceed more rapid.
ly by going beyond the banks and dealing with
the people direct, This bill proposed just that
thing. II was not proposal to make a savings
bank Of the Treasury. The amendment OF the
gentleman from Pennsylvania (Kelley) put a say.
iRgs bank feature intOit but not one broad enough
to Gil the idea Of savings bank while lt subsian-
tally took away the purpose Of Fefunding He
believed that the bill as IL stood, would be yery
eficacious In Fastening refunding The gentle.
man from Massachusetts (Butler)t taid that the bill
would distress the poor nan. He (GaTfeldl had
more faith In the poor man. He was willing 70
believe that II man was determined TO save SlO
he could dOso. One OF the elements Of strength
In France arose from the fact that's 900 900 French
men held bonds Of France. The day on which
5000 600 American laborers were holders of United
States bonds would be the day when the occupa.
tion OF these gentlemen who tried 10 raise a row
between b0ndhOdeTs and the poor people would
be gone he was anxious for the death Of dema.
gaguery ana that the people should become In.
terested In the debt Of the nation. That would
be protection for the public credit II would
be the day for refundlng he debt. II labor and
industry were TO be encouraged the Govern.
ment must get out Of the way as a competitor for
loans
Mr. Phillips opposed the bill. He desired to Of
fer an amendment providing for deposit in any
postOeioe which is money order Office, OF any
amount not less than twenty y'hye cents TO be for
Warded 10 the United States Treasury, and an &C
nOunt kent with the depoEitOr who shall rpnaiva
interest at the rate Of four per cent and that
when this sum shall amount to ten dollars 1t
shall be converted into certificates provided for
MT. Wood declined to yield for the amend.
ment.
Mr. Townsend (0hiO) favored the bill
Debate having closed, Mr. Burchard offered an
amendment that In lieu Of OF the certificates pro
Vided for, the Secretary Of the Treasury shall II
desired enter on the books Of the Treasury 10 the
credit Of any ono presenting or forwarding II 10