The Pioche weekly record. [volume] (Pioche, Nev.) 1877-1900, 1894-12-13
POSTAL SAVINGS BANKS.

At its last convention in Torato
nan, the Farmers Alliance declared
~ FAVOR OF establishing postal savings
panks' They demanded that the
United States should establish banks in
connection with the postal department
where the people could deposit their
savings with absolute safety. at mod.
erate rate OF interest. The widespread
failure OF banks all over the country in
the last year. they claimed. renders the
establishment of postal savings banks
not only absolutely necessary, but also
an imperative Cuty which the Govern.
ment owes to the masses. Thousands
iost savings which they had amassed
Dy patient, hard work and self.denial.
The suggestion is one which merits
recognition, for as so many of the lead
ing countries Of the world have intro.
duced postal savings banks with great
success, there is every reason to believe
That equal good fortune would attend
any similar scheme in this country.
The first postal savings bank act was
passed by England in 1861, three hun.
dred offices being opened in the United
Kingdom for the receipt of deposits.
Inc success of the plan was stipend
GUS. Within fifteen months from the
day the system was established. there
were 1885 offices and deposits to the
amount Of $4,55O,OOO. The smallest
sum that can be deposited is one shill.
Ing, though the Government has lately
issued blank forms with space for
Twelve penny postage stamps for less
amounts. No one is allowed to deposit
over forty pounds, and if the principal
and interest amount to this sum, no
further interest is paid until the
amount is reduced. The interest paid
Is "a per cent, being added to the
principal on December 81 of each year,
though nothing is paid on any sum less
than pound. One of the best features
OF the system is that man need not
necessarily transact business with the
office in the town in which he lives.
His account is kept at London, but he
is at liberty to withdraw his money at
short notice from any office. Canada
introduced a similar system in 1868.
Postal savings banks were introduced
by Austria in 1888, and according to
the director of.the department.they have
met with extraordinary success, having
been established in every postoffioe of
the empire. These banks have also
been established in Spain, Belgium,
Holland. Denmark, Hungary, Italy,
Japan, Norway, Sweden and the Eng
fish colonies.
In this country nine different bills
have at various times been introduced
into Congress, but SO far without sue
cess Advocation.. of the postal savings
bank system does not Of necessity imply
antagonism to private banks now exist
ing. Indeed, the private banks will
still be needed; in England they did
not decrease when the new system was
adopted. As in Austria, postal savings
banks could be connected with our
postoffices, thus allowing people in the
to deposit their money with
perfect safety and without any incon-
saving them the trouble of a
long journey to some large business
center. At least, the system could
work no harm to the Government,
while to the people it would be vast
help, as they would be encouraged to
save the pennies which ultimately make
the dollars.