The weekly tribune. [volume] (Great Falls, Mont.) 1891-1894, 1892-04-30
POSTAL SAVINGS BANKS.

One OF Mr.. Wanamaker's favorite
schemes is the establishment Of postal
savings banks. As he has recently said
in an interview on this subject, the pri-
vate savings banks would not be affected
to any appreciable extent by such postal
banks. The business of the private
banks is principally with largo accounts,
trust funds, and the like. Postal saw
ings banks would not be able to pay as
high rates of interest as the private
banks, but would attract a line Of small
accounts where absolute security is
wanted, that is the small savings of
workingmen and laborers who often hes
itate to put their small boards into pri.
vate banks for fear of loss.
Postal savings banks are now in oper
alton in several Of the countries of Eu-
rope, the most unique schemes being
perhaps those Of England and Germany.
In England there is a special provision
for the encouragement of the poor to
save, especially the very poor-those
whose earnings amount to but a few
pennies each day. If the laborer can
save one penny of his earnings he takes
it to the ~postoffice and buys a penny
stamp which is affixed to a blank pro-
vided for that purpose. This blank is
ruled to contain twelve stamps. When
IN the course of as many days or weeks.
as the case may be, the laborer has pur-
chased and affixed to his blank twelve
stamps the sheet of stamps is deposited
in the postal savings bank and the de-
p%ositor is given credit for one shilling.
In Germany the scheme is somewhat
similar, but is combined with a plan of
life insurance. The deposits made by
the laborer are in the nature of a pre-
MUM paid by him for insurance on his
life. Following the policy of pa~ternalism
in government, which the present EN-
peror has carried to so great an extent.
the purchase of these insurance stamps
if they may be so called-is made com
pulsory.
The private banks. as a rule, oppose
the scheme, though, as IA matter of fact,
there are no good grounds for such op-
position. The experience has been, in
those countries where the postal savings
system is now in operation, that it does
not affect the business Of the private
banks in any degree whatever. On the
other hand postal savings banks would
meet the needs of a vast number of
small ~depositors who have no confidence
in the private banks. In twenty-six
states of the union, three territories and
the District of Columbia, no law what
ever exists in respect to private banks
that is to say. any person OF firm can
undertake the business of private bank
ing in any of those states or territories
without legal restriction of any sort and
without supervision or control under the
law. In eight states and three territor-
les no reports of condition nor exa nina
tions are required by law of banks in
corporated under state authority. The
treasury reports show that prior to 1879
the losses incident to three or four pri-
vate banking concerns we're equal to the
total losses which had up to that time
occurred under the national system.
The matter has recently been brought
before the senate committee on postoffices
and post roads and it is likely some ac-
ton will be taken during the present
session.