Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-06-01
MR.DEPEW'S PANACEA
Postal Savings Banks the Solution OF
the Negro Problem.
1T BRINGS MATERIAL PROGRESS,
And This Means Study and Self.Education
for the Colored Man.
TIE PLAN IN ENGLAND AND CANADA
WRITTEN FOR THE DIsPATcH.I

Some time ago Chauncey Mitchell DepeW
delivered an address before the alumni OF
Yale College. This was just after his last
trip South, and, in the course of his speech,
the orator dwelt upon the negro problem.
Mr.. Depew did not, as some other persons
Of original minds have done, advocate the
sending of the colored inhabitants OF this
country to Africa, nor did he seem alto
gether in favor Of leaving them without any
sort Of help or advice to work out their own
future. Indeed. Mr.. Depew seemed to think
and does think that it il the duty of the
Government to take steps to assist the negro
to greater prosperity, to greater selfdepend-
ence, to greater knowledge of his needs
and of their remedies, and to freer in
tellIgence of his duties as q man and as q
citizen.
In the course of his address Mr.. Depew
said that one of the best ways, if not the
best way, to assist the negro at the South,
and, for that matter, not few of the whites
there as we'll, would be for the Government
to establish there postoffice savings banks in
connection with the Postofice Department
for the benefit of small depositors.
England is the home of the postof flee
bank. In 1861, mainly through the efforts
Of W. E. Gladstone, q bill establishing such
banks was passed by the House OF Com
mons. The system was success from the
start. In little more than a year after it
was inaugYrated the deposits in these banks
amounted to more than 81, 500, 900. At the
end of 1873 the deposits all told amounted
to Ell, 745, 442. On these deposits an inter-
est OF about 2H per cent was paid.
THEIR WONDERFUL POPULARITY.
The amount of the deposits was from time
to time turned over to the Commissioners
for decreasing the national debt, and by
them invested in consols. At this time the
limit of years deposits in these banks was
$3.50. 1t was found advisable to limit the
might not unduly compete with other
banks operated by private corpora
tions. Since 1873 the number of banks
has increased and they have pros
pered 10 q manner little short of marvellous.
In 1886 they numbered 1881. There were
upward Of 4, 900, 900 single deposits in these,
amounting to $3.50, 000, 900. They have been
highly success ul in France, too. In Canada
there are many OF these banks. They pay
about 8 per cent upon deposits, the latter, OF
course, being limited. So far the United
States have not sought 10 establish these
banks for a number Of reasons, a chief one
being found in the superiority of our savings
bank system.
Mr.. Depew held all these facts in view
when he made his speech before referred to.
He had examined the workings Of the post
Office bank system while abroad, and it was
as d result of this study that he recon-
mended their Inauguration here.
roat Mr. napau iucf aftar his rafurr
from the West, and found that be was even
more confirmed in his faith in these banks
than he WAS at the time when he first pro-
posed their establishment.
"The thought that the establishment of
postoffice banks would be grand thing in
the South at least, has been growing upon
me since first visited the South" said Mr.
Depew." My yobservations during my late trip
through that section have caused me to feel
even stronger that they would work great good
for the community in general, and tor
the people of the South in particular I
am confirmed that they are great agency
in the way of assisting workingmen to raise
themselves above the fear of want in old
age. In England the banks are managed
by the Government, and there can be no risk,
so the masses have full confidence in them.
And, on the whole, these postoffice banks
fill position that may be said to be pecu-
liarly their own"
FOR THE NEGRO ESPECIALLY,
"You had. however, the South especially
in view, did you not, Mr.. Depew, when you
suggested the Inauguration OF such banks in
this country in connection with the Post
Office Department of the Government
II had, replied Mr.. Depew, land I had
the negro especially in mind. am not sure
that postoffice savings banks are especially
needed at the North. Nor am 1 sure that
the whole population of the South needs
them. You see, we are not ss England is.
1t is not exaggerating to say that our saw
Ings bank system at the North at the least
is well nigh perfect; England and other
countries have nothing to compare with it.
Even the smallest depositors can here find
opportunities to place their savings where
they will be safe, and will bear in interest,
small but steady, and in the end by no
means to be despised."
You think, then, that the negro at the
South has not the chance to invest his saw
ings in ordinary savings banks?"
Precisely, that is what think. This is
true tor several reasons. Savings banks
throughout many parts of the South are very
lew, and even if there were ordinary savings
banks, it is doubtful il the negro would
take advantage of their existence to any e1-
tent The negro is inclined to be dstrustlul
of good many things, and, on the whole, 1
don't know that we can blame him. He has
been taken in a good many times. There
was the Freedman's Bank, you know; that
made him distrustul. There have been any
number of schemes inaugurated whereby he
was to be helped. In good many cases he
was not helped. He was injured, and that,
not unuaturally, made him suspicious. So
now he does not place that amount of faith
In bankers and men who might take better
care OF his earnings than he himself can. If
he is OF saving disposition, he is in good
many cases more apt to put his earnings in
stocking and hide them, than he is to
trust them to bank.
CONFIDENCE IN THE GOVERNMENT.
1.-THE Government means great deal to
the colored man. He looks upon himself as
the child OF the Government, as in a sense
he is. So believe that the negro would
have full confidence in banks connected
with the Postoffice Department. He would
understand that he would not be depositing
his earnings with one man, or with q num-
Der Of men, but with the Government, and
1t has been my observation that the negro
has pro ound confidence in the Govern
ment. Now, the Postofice could at COM
paratlvely little expense establish banks
throughout all the South. The depositors
might be few at first, but once the system
came to be understood I am satisfied that
the colored people would be quick to see the
advantages OF it and to benefit by them.
"Dn you know" said Mr.. Depew earn
estly, "that the savings bank is q wonder
ful agency in the way OF improving commu-
mites, as well as a means for benefting the
individual? started bank once mvself
up in Peekskill. 1 was young lawyer
then. but had man associated with me
who knew the banking business thoroughly.
T..