New-York tribune., 1886-03-13
ADVOCATING POSTAL SAVINGS BANKS.
ARGUMENTS IN FAVOR OF THE SYSTEM BEFORE
uorsE COMMITTEE,

HOUSE COMMITTEE.
WASHINGTON, March 12.-lhe House Coih-
mittee on Offices and Post Roads gave hearing to-
day to a number Of people who appeared TO advocate
the passage OF the measures which have been introduced
proydng for the establishment OF postal savings banks
There were present Assistant Secretary and Mrs FAIR
child Walter Howe, OF New-YOrk. and Miss Louisa Lee
Schuyler all representing the state Charities AID Assoca
ton OF New York, Senator Evars, Mr. and Mrs MOTIFS
K Jesup Of New-York; George f. Mcneil. OF Boston
representing Knights Of Labor Frederick H. Burn
ham OF New-Jersey; 4. L. Godkin, OF New-fork;
David H. Wright OF Pennsylvania; Willis 8. Paine' OF
New York and Others Assistant Secretary farchhu
speaking behalf Of the State Charities Ala ASSOCIATION
said that the association in the course OF lts nhlsr
ons had found OF the demoralizng influences
was the incurred by the poor growing out OF te
failure OF savings banks Mr. Fairchilds personal In
re.t grew ont OF his experience president OF the Aid
Association and as Attorney General OF New-York In
the latter capacity had been his fortune to put INTO
bankruptcy, savings institutions representing ABOUT
81 900 600 OF savings The state laws were rutie Ihe
interference OF the State was trap and deuson' Inc
depostors had absolutely nothing to depend upon but
the good faith OF the of the banks he could
see nothing the State to do but TO repeal all its laws
ON the subject or take the securities and guarantee the
funds Neither seemed to MIN TO promise the To
lief desired The Government OF the United States
however had machinery which with little additional
expense could take the savings OF the poor ana give ap
Inducements to make deposits. The rate of interest
should be small and every nducement should be held
out to withdraw the deposits soon as they should
amount TO enough for paying Investment Id private
business The ag sregao OF postal savings would prob
ably be much less than s the aggregate OF deposits IN
savings banks at present The system would however,
be because would reach localities where
savings banks, and for the 1urther reason
that IL would appeal the mld class VINO are no" ue
TERED from depOsitng In private institutions by reason
of the fear OF loss City of NewYork during four
yearn prior To 1879 S4475 900 lost by reason OF
the failure OF twenty-five savings banks The loss tel
upon 20, S34 depOsitOrs. - - ,.,,.
President Gilman, OF johns huphttns
smoke as the representative OF the Charity ORGANIZATION
Society of baltimore He desired distinguish between
two questions. fret. whether the Government SHOULD re-
ceye the deposits Of the poor people anu seconu,
whether the Government should pay interest upon snc
depOss The great obstacle 10 the progress Oh the poor
was the want OF place to deposit lie described
what he conceived would be practical operation oI
postal savings bank. - -,
Waller Howe OF the NowYork Aid Association. said
he udge from what he mad heard tha the objections OF
the committee to the proposed syso were 10 n0
ure of paternali-m There about T4OO,OOOOOO OF
savings In the savings banks OF New-NOrk aud from
twelve to fifteen million dollars were deposited annually
These deposits were largely from the aErGuIlula us
tricfs lie cited the Freedmans savings Bank "a an
illustration the disastrous results or the faure OF
private institutions upon the fortunes OF the poor such
failure would discourage for years all endeaYorinG 10
save on the part OF the poor would directly en-.
courage improyidence 10 seemed to him that the knd
o, paernaism which would furnish places OF deposit
for the savings Of the poor was not the KIM tha' was
Objectionable. -,
Members Of the commitee questioned all the speakers
at length incidentally expressed IN some cases e
views botn IN favor ana ~ cruc,7 ol VIZ Ui -
the House Postal savings Bank bu briefly Dut eaTuesV
defended and explained his measure. Willis = Palhe OF
York, opposed the establIshnent OF postdt
banks on the ground that it would nrre private saw
banks