Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1886-04-12
NATIONAL PROBLEMS.
ARTICLE XVI.
POSTAL SAVINGS BANKS.
Betwoen the People OF the United
states and Of Europe.
Is, $40. p. TOWNSEND.
fcopyrIghtod, 1851

postal sayings-bsnk system Of Europe. 1t
provides that any person may deposit at
any money postofllce, to be repaid at that
or any other money order Office within
the limits of the United States, any sum
from 10 cents to 500, but not more than
the latter sum may be deposited for ac-
count Of one person in any thirty days,
and no PERSONS deposit shall eXceedS500.
These deposits are TO be invested
by the secretary Of the treasury in inter
est-hearing securities of the United
States or in those guaranteed by the gov
ernment or in approved state securities.
The expenses Of the system are FIRST TO be
paid, aud after that interest is TO be cred
tied on all deposits Of two months stand
Ing, at a rate not to exceed . per cent. per
annum.
The government of the United States Is
TO be responsible for the safe keeping OF
deposits, and to return them on demand
with whatever interest may have been
credited.
FALLACY or THB PROPOSED Plan.
The advocates Of this system quote the
example OF foreign governments to prove
that Il should be good for us because it
works well with them; they are imbued
with the idea that il Is the duty of the
central government to provide place for
the savings Of the people OF all the states,
as q means of encouraging thrift and as
4 prevention OF crime. The arguments
used are the same that all promoters of
savings banks are familiar with
Savings banks are undoubtedly among
the greatest inventions of the present
century for the prevention OF pauperism
ana crime. They elevate the moral tone
of communities where they exist; they
teach the people who use them self
respect by instructing them how to take
care OF themselves. Every week when
wages are received, II is i Joy TO see the
crowds come to well-managed savings
bank TO put by their surplus earnings
against time of need; but the people to
be benefited need to be taught to save,
and the advantages can be best explained
and the teachings DE properly considered
only when the managers of banks are their
neighbors or friends. Public officials will
have little interest beyond anxiety 10 re-
tain their offices, and those who would
really have charge of funds deposited in
postal banks live at a distance from them.
The notion that children, clerks, me-
chanics, railroad employees, laborers and
Others dependent ON wages or salaries
will commence saving at once the banks
are opened is fallacious. No people prob
ably in the world are more improvident
than those in this country, owing 20 the
ease with which money is earned
They need to be taught the value and
use Of money, and local boards Of trus-
tees can best do it. It is revelation TO
most savings bank depoeitors at first, to
learn that their savings en- be made to
earn money as readily as lelr labor, and
they cannot quite under and when first
rthey have their books wri zen up snd find
interest added, why they are credited
with more money than they deposited, but
this induces further savings and leads 10
greater accumulations and many have be-
come well to do and even rich by the
teachings of their savings bank sccount.
SECURITY AND INTEREST BOTH NECEs-
SARY.
1t is urged by the friends of postal
banks that safety only and not interest is
required by depositors. It is true that
the former is aprime requisite and should
be sought first, last and alwsys but the
earning power of the saving is the
great inducement for its continuance.
II is suggested that If the government
cannot safely invest the deposits to earn
interest, none will be paid; II this should
happen, the deposits would at once fall
OF and with many cease entirely.
EVAsIoNs OF THE LAW.
The postal banks would be used prob
ably from the beginning, but not alto
gether by the class which it is hoped to
benefit. The merchants and traders hav-
ing payments 20 make at distant points
would ind The machinery of the banks
quite useful aud economical when ex-
change was against them. quite a bust
ness would no doubt be carried on in
opening accounts in various names by
one person and in cashing the accounts Of
others. II violations OF the law, limiting
deposits OF sn individual TO five hundred
dollars, should be detected, no penalty
could attach but fori .iture of interest
| (it any WAS credited, tae principal sum
could not be conhscated so the design of
the law-breaker would be accomplished
and his profit gainedat the expense Of the
government.
ADVANTAGES or a STATE SYSTEM.
Every state and territory 10 the Union
has men as benevolent, as honest, as
wise, As the trustees i the best savings
bank in the East, sid every state has
some kind OF propers or credit which
would DO good seen .ty for depositors
| NtiN HAANl NSuAA. Ac AocN LOT INV EStlleltS.
/ Why should they not De utilized by es-
/ tabllshing savings b. Ks under state con
troll, by general law; simil2r to the one
Z IN New York mznsgth by local trusteess
No failures nor loss 1 I deposits have ou
Cured there for ma Y years, since Tie
present law Went tnto operation. H.
would seem wiser iir the Feople Of the
states 70 educate themselves, ani not
| ask the supervision 81 co2gress. which
/ has already too MARI tur1srs pat anon
I II. Capitalization en- u cArrss5 700 far
and line should be drawn 4. postal saw
I ings bznks
The condition Of nAny Of lie older.
well-nanSged savings banks 10 the state
Of New York and Other Eastern states i
worthy o. remark. They hSye accpinu-
lated suFplus Of j. and 70 per cent. over
the amounts due depOsitors, which they
hold as additional security for their ben
EFT sitter having PAID regular and fair
dividends every Six months OF tslair ex-
istence. They were started without
capital sud have never had any. Nor i
any required to start Few one.
Trustees should Be selected with care
and b men possessed az honesty ana