Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-05-19
Postal savings Banks.

The founder Of the DISPATCH was among
tho first persons who came out In favor OF
the establishment in this country OF postal
savings banks. wherein the masses Of the
people could deposit their small earnings
without feeling any apprehension what
ever that they might lose their money.
When they do their utmost and exercise
the most rigid economy they can lay by
but few dollars each for rainy day."
But when they are confronted with the
possible loss Of what little money they
could thus save it becomes of course still
more difficult for them TO divide their small
earnings between the present and the fu-
tnre. Mind. it is not probable loss which
thus deters the industrious workingman
from attempting TO save portion OF ms
earnings. but possible loss. There may be
only one savings bank in hundred that
fails. vet the result is the same-namely,
there is q lack of confidence on the part OF
the would-be depositor. He cannot make
mn his mind TO take even small risk.
And yet we ought TO be careful what
we say on this point when we call TO mind
the fact that, according to the Postmaster
Generals estimates, based upon what he
considers reliable information, the savings
deposited IN all the banks in the United
States aggregate over fifteen hundred mil
lions of dollars, sum sufficient to pay of
the national debt, or to pay oil the debts
of the several States five times over, or to
paw the entire debt owed by States, coun-
ties. and cities. The Postmaster-General
fayors the establishment of postal savings
banks. and has taken great pains to inform
himself on the subject. He proposes to
nav less than per cent. interest-say IL
per cent. These deposits might be used
TO fund our national debt at the low rate
of interest just named. The Government
must have some way of using the deposits
that will enable it without loss to care for
them and pay interest upon them.
We have said that the deposits now In
the custody of the banks of this country
aggregate over fifteen hundred millions OF
dollars. Establish postal savings-banks
and they will soon have deposited in them
al least as much as the sum named, and yet
there will be no diminution of the amount
of deposits entrusted to the banks. The
private banks will find it necessary to make
their depositors feel the same sort OF con-
fdence which will be felt by depositors In
the postal savings-banks, and so the
patrons of the two systems will we with
each other in their endeavors to perfect the
one and the other of the two systems. The
higher rate of interest in the ordinary
savings banks will tell in their favor and
against UNCLE SAM. The sum totai of re-
suits 1--WE are using figures now as well as
figures of speech) will be hundreds OF mil
lions of dollars saved TO the working
classes; improved moral and physical con-
dltions among Them an unmistakableinter-
est in the perpetuity Of the national Gov
eminent, and a devotion to the common
veal which will far exceed that now felt.
We shall be told that we are advocating
paternalism." And we shall have to adj
nit as the celebrated DR.. ALTERNATELY once
admitted concerning prescription OF his,
that ait is liable to that objection" 1t is
kind of paternalism to which 1t is too late
10 object. The public-school system Is of
all things the best example of benefcent
paternalsm. When owned by munlcipah-
ties eas-works are of the same nature. 80
are water-works. So are electric plants.
So are all natural monopolies Here perhaps
NAV come in Professor ELY's dictum con-
corning natural monopolies. Somewhere
the people will find an excuse or rather
good reason Tor the exercise of "pater-
nalism" which promises to save to them
untold millions of dollars. and to render
the one hundred millions of people who
will soon live under the star-spangled ban
ner the happiest and most contented upon
the face of the habitable globe.