The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-08-24

TO the Editor OF the Indianapolis Journal
The frequent failures of savings and other
banks in this country, whereby thousands
Of poor people, as well as merchants and
persons in the middle walks of life, are dis
tressed and frequently ruined, calls atten-
ton to the admirable system of postal
savings banks, as now established by The
leading governments of Europe. In Eng
land, for instance, deposits as low as a shil-
ling can be made in any postoffice in the
kingdom, where it receives the guarantee of
the government, and draws an interest OF
or pa per cent. Alth ough this is a low
rate, it must be remembered that the bulk OF
poor people deposit not so much for profit
as for the feeling of perfect security, that
their money is safe, end can be had at any
moment.
Within the last ten wears at least nine
tenths of the so-caled Savings banks" in
the United States have failed, sweeping OIL
the slow accumulation of millions of dollars
from poor people; and as to other banks and
bankers, we have had half dozen failures
within week, and the plumber of the pub
lie by defalcations of their officers, and by
other causes, has become disgraceful to our
national character, to say the least.
The plan of depositing savings in our post
Offices. with the guarantee of the strongest
government in the world las it now guarantees
the notes of the national banes9, would be
an advance in social convenience second to
that only Of cheap postage, which has proved
the greatest factor in the civilization of the
age.
In England there was deposited, last year,
over $500 900, 600, mostly in small sums and
largely even by women and children, who
can thus lay by something for rainy day,
i i faa ~.
they have saved is secured from bank
failures or from burglars. Scarcely a day
passes that we do not hear OF petty burglar
les whereby the savings and ready cash OF
families is stolen. As remarked above, the
poor don't deposit their savings so much for
the delusive profitof high interest as for the
feeling of perfect security.
By these banks, also, government has the
use of millions of dollars at lower rate of
interest than it even now pays. Besides this
advantage, every depositor would feel an
interest in supporting the government in all
times of peace or war If such system had
been in existence thirty years ago, it would
have been great advantage to the
Treasury during the ebellion-possibly 1t
might have prevented it If our Southern breth
rem had then had millions thus deposited.
Speaking of the South, l think there is not
at present a savings bank, good or doubtful,
nor any other way whereby small accumu-
Southern State. The same may be said OF
many places in the West. But postoffiees are
accessible everywhere.
Is Postal savings banks would prove a pc
cuiar blessing to those colored citizens at
the South who are struggling to better their
condition. With no encouragement to save
their earnings, people acquire no habits OF
economy without which industry is only
half a blessing.
1t is surprising how slow great radical
improvements in society are effected The
matter of cheap postage was discussed in
England for several years before it
was sanctioned by Parliament, in 1889 The
Postmastar-general said the idea of reduc-
ing the postage OF letter from shilling to
a penny was the most preposterous nonsense
ever heard" But he was mistaken, and lived
to see the department. which had never sup
ported itself under the old rates. yield sew
eral millions annually to the British treas
ury 1t was ten or dozen years after Eng
land led the way before Congress made the
radical reduction to three cents letter in
this country with satisfactory results. So in
the case of money orders The British gov
eminent soon engrafted thissystem into their
cheap postage law. 1t was talked of some
what in this country in 1861, and, think,
recommended in Congress by a member from
Indiana, but was not established by law for
several years. We all know what great
convenience it has proved,
Let us hope the press will agtate the sub
ject of postal savings banks and create
wholesome public sentiment before the next
session OF Congress. J. B. R.