Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1891-01-23
FRIDAY MORNING. JAN. %. 1891.

The following is from a late number OF
the n. Y. Evening Post: 1.-The, establish
ment of savings banks in the South is
noteworthy evidence of progress in that
part of the country. Such institutions have
been almost unknown there and the absence
of secure repositories for savings has been
a great obstacle to the development OF
thrift Memphis has been one OF the ilrst
among Southern cities to realize their i'm
portance and they have multiplied within
the past two years until now there are
seven, & < * The colored man has suf-
tered perhaps more than the white from the
entire absence Of savings institutions III
the South. 1t is not too much to say that
the failure of the Freedman's Bank was
the greatest misfortune the colored people
have suffered since emancipation. for 1t
WAS calculated to destroy the virtue OF
thrift just as it was beginning to develop.
Practically it put the race back in this
respect fully 20 years, for the bad effects
have been felt down to the present day
The Pittsburg Commercial Gazette says:
1.-The amount of deposits in the savings
banks of the six New England States, and
in New York, New Jersey and Pennsylya-
MIA, during the year 1890 aggregated the
enormous sum OF 81 ,279, 000, 600, OF an III
crease over the preceding year of S65. 600,
600. There is in this city a single bank
which has on deposit $13, 705 600, the great
bulk of which represents small earnings.
The depositors number 81, 1888, an increase
of ,56S over those Of the preceding year.
The benefits which flow from such an in
stitution are incalculable, and as savings
banks are multiplied throughout the coun-
Try the annual savings of the working classes
will be correspondingly increased
A savings bank is greatly needed lin
Staunton and especially i'll view of the III
crease in our population which will take
place as soon as our new industries, which
employ a large number of workmen, are
fairly under way. At the present time we
know of parties who send their small saw
ings away from here to deposit in savings
banks because there is no bank here. We
are satisfied that the prejudice which has
existed against saving banks at the South
since the war is owing to lack of knowledge
as to the proper way of managing them.
They should never be connected with a
bank Of discount, nor make loans on pei
sonal security. Their loans should be con-
fined to real estate with double the amount
loaned, and to such other securities as
town, county OIL State bonds as may be des
ignated by the State-these securities to be
Of unquestioned value and issued only by
such cities as are solvent beyond a doubt
Deposits of ST and upwards should be re
ceiyed and no larger sum than $500 from
any one depositor. Interest payable only
on deposits which have remained in bank
for six months principal payable al
any time on demand. At the present low
rates for money, it is probable that not more
than 4 per cent. per annum could be pai(
to depositors, many Of the best Northern
banks paying only 81 per cent. The differ
ence between the rate of interest received
by the bank and that paid to depositors
would be required to pay the expenses Of
the bank, which should be reduced to the
lowest possible figure for the first year OF
two-all that is required for carrying Oh the
business being an Office and an accountant
the bank to be open once OF twice a week
until its business increases sufficiently tC
warrant its being kept open oftener. The de-
posts should be exempt from taxation by
special statute.
1t is needless to say that the bank should
he managed by conservative men Of good
Judgment and undoubted character, and
public spirited enough to give proper at
tention to the business without compensa-
ton. The bank should berequired to make
report to the State once in six months, and
the books should be subject to inspection
by the Treasurer or Auditor of the State
at all times.