Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-09-22
A NATIONS SAVINGS.
Are Postal Savings Banks Needed
TO Hold the Peoples Money?
POSTMASTER LARKIN's VIEWS.
He Thinks There is Safety for the Deposit
of ALI the Surplus.
TIE OPINIONS OF MR.. HORACE ]. SMITH


in Europe cited in its behalf. Lately
Horace ]. Smith, Kronenhof Pontresina,
Switzerland. has been corresponding with
Mr. John A. Harper, of the Bank OF Pitts
burg. on the subject. 1t appears that in
1884 in Austria, Belgium, Canada, France,
the Netherlands and Great Britain there
were deposited s1S2, 1Oo, 900 by $500, ,7o3 de-
positors, and Notwithstanding their sup
posed poverty the European depositors
saved about S27 80 per head, while those
in Canada saved fraction over $228 apiece,
and this does not show all the savings in
Great Britain, for the Government limits
the amount it allows creditor to have to-
his credit The report of the British Post
office Savings Bank for December, 1888,
shows total OF 4, 22O, ,927 depositors, having
in round numbers s2S2, ,OOO, 900 standing to
their credit.
Mr.. Smith notes the antipathy 10 Gen.
tralization in the United States, but offers
an alternative plan to avoid the concentra-
tion of the nations savings in the Treasury:
First, the transmission of the savings de-
posted at the postof6ces to the States in
which they originate. Thus the Common
wealth Postofice Savings Bank system
would give us AZ savings banks. The sec
ond is the transmission of these deposits to
corporate savings banks which might give us
1000 savings banks. In this plan, he claims,
the elements of danger might be eliminated.
HE SEES NO COMMUNISM.
Mr.. Smith claims that either Of these
plans confines the Postofice Department to
its ordinary and legitimate functions-viz.,
the receipt, transmission and repayment of
money, giving the poor and their children
as well in thinly scattered districts ad-
vantages possessed only in comparatively
thickly settled ones. He estimates that
one-fourth of per cent. might remunerate
the Government for its service. He argues
that such service would be no more COM
munistic than the furnishing of free schools.
As to the first plan he argues that the
acceptance by State of the earnings of its
citizens would give absolute security, for
the State would never repudiate debt
owed to its own voters, the aggregate Of de-
posits would be constantly increasing, and
when the money Is spent In the States in
which it originates for internal improve
ments, or is loaned out by 1t to its munich
palities for this purpose, as is done in En-
gland, the people would receive with one
hand in payment for their labor, what they
had deposited, as it were, with the other.
As to the second, if it were decided to
extend cheap or free postal facilities to
corporate savings banks, they should come
under Congressional law providing for their
security, should become in fact National
savings banks. Corporate savings banks as
now worked can only have those as their
clients, who live within q circumscribed
radius-say within or miles-with
the aid of the postofices their depositors
might be go, ,000, 900 and live anywhere
within reach of a postofice.
Finally Mr.. Smith suggests that the two
plans might be worked together, the State
giving absolute security, but less interest
than the corporate banks.
thought of the plan and be wasn't long
about giving it. Mr.. Larkin said:
MIR. LARKIN AGAINST IT.
''There is great diversity of opinion on
the subject of Postal Savings Bank, such as
that connected with the postal service in
England. The matter is agitated at and be-
fore every session of Congress, but the pre-
ponderance of sentiment seems to be against
it, and think very properly. Poor people,
or people of the middle class, having surplus
money in small amounts, have two objects in
depositing in savings banks One is for
security and the other is to secure the in
terest that such deposit promises. Both
objects are attained by private enterprise,
so that there is no want of new agencies and
no necessity, in my judgement, for q postal
bank.
''The first thing to consider in the estab-
lishment Of service of that kind would be:
what will the Government do with the
money, where will it get its revenue? 1t
could not employ the funds without
embarking in some new enterprise of
mercantile character, and that IS clearly
outside of its province. The cost of such a
system must then be drawn from the de-
posits or from some other department, and
in either event the scheme would be a
failure. The accumulations from de-
posits, should the Government intro
duce-the system, with promise of in
terest would only add to the interest bear
ing Indebtedness, and that seems to be the
very thing the Government takes pride in
getting rid of. It is bad enough to have q
large surplus that produces nothing, drawn
from the producing classes and out of the
channels of trade, but it seems to me far
worse to think Of gathering together what
would be q much larger aggregation in
another form, incurring new risks. expense
of handling and ultimate interest.
''The great question in this country now Is
to provide against the accumulation Of
money by the Government in excess of that
necessary to meet its just obligations and
the economic discharge of its present func-
tions; and until that is settled there is not
much use in talking or thinking about a
new branch Of public service that would
bring nothing but a new and very large |
surplus. The feeling in favor of such a |
measure probably grows out of the popu- |
lality of the money order business, and the |
safety of the money order itself, without |
considering the cost to those who use the |
system. True, the cost of remitting funds |
to any part of the world Is small, and at |
tended with absolute safety, but the trust |
ends with the payment of the order, and |
the expense is so adjusted as to avoid |
even the accumulation of money from fees.
NO LEGISLATION NEEDED.
"If the safety Of such q system is the only |
question there is no need of any additional |
legislation, as people have all the safeguards |
the Government can throw around it, and |
may deposit as much as $500 each day, pay
able to themselves at any place or TO any |
person, and may present the order for re-
payment at any time within one year.
There is really no limit to the time. for
after one year there is provision to pay by
duplicate. Many people favor the intro
luction of postal savings banks, but when
you consider the absolute safety and re-
employment OF funds by insti-
,utions of that kind, ran under private
auspices, the necessity for Government COM
petition is not apparent.