Chicago eagle. [volume] (Chicago, Ill.) 1889-19??, 1896-06-20
POSTAL SAVINGS BANKS.

In tie recent disclosures showing how
bank may e kept open AMI may ac-
ce,pt deposits for several years while II
Is on the verge of actual collapse may
br found one of the reasons tending to
reduce the number Of deIosltors AMI
discourage thrift The revelations also
afford another strong argument for n
national postal savings system which
would encourage frugality by accepting
the snail sums. paying some rate OF
interest. ana. above all. having behind
II the credit of the entire government.
Neither In theory nor In practice has
there been found u really cogent oh.
lection to the publicly managed savings
bank. In France the system has been
found to bc such powerful promoter
Of thrift and prosperity that the Origl.
nal municipal! savings banks have been
supplemented by the general postal
savings hanks. Notwithstanding that
the two have Thus come into c0mpeti.
ton there has been steady growth In
the number Of deposits In 10th. In the
city of Paris alone In 1893 over 5000
0cpositors held accounts In the local
system. their deposits nggrcgn ting 100.
GOO.UOO francs. In the national saw
ings bank system the Partisan depOsi.
tors number Just about as many and
their deposits sprung from 7.OOO.OOO
francs In lSS? to about GS. 600. 600 francs
In 1902. 1t Il estimated that In this
way more than u million Parisians keep
accounts 10 their credit. Outside Paris
the French national system Inns met
with equal success. ana In 1893 more
than $50 100000 francs of savings had
been deposited. 1t IL estimated that.
summing up the two systems, q savings
bank account will be found for every
four and a half people, or In general
terms. one for every family. In Ger
many the publicly managed savings
banks. although placed In municipal
control have met with wonderful sue.
cess. The Berlin branch, with Its many
sui,-statiOns, holds accounts with over
100000 savings depOsitors. Dresden,
Hamburg and the other cities carry n
number of accounts wonderful In pro-
portion to their respective popula tiOns.
In one city II Is estimated that every IN.
dividual In the town, man. woman and
child. has q bank account. IT IL not
hard to find the reason for the success
es of these institutions. They are easily
accessible. convenient and popular. and
every one takes some degree OF pride
In having a deposit. They hold the alb
solute confidence of the people. for theii
credit Is without question. They stand
as an open invitation TO thrift AMI saw
Ing. There IL no good reason why ma
tiOnal savings banks. managed. as In
France. through the postal system
should not he In vogue In this country
They would answer to n real need Ol
the masses. who are diffident about In
vesting their earnings through private
capital. and who from time to time are
made timid by the revelation OF sOmt
bad management or rascality In a pri
vate hank. The timidity may be un
wise and work an injustice to the man!
perfectly sound banks. but II II ther'
and Il will he ineradicable until banl
inspection Il improved. 1t will he ;
great day for the country when TIN
government opens postal banks, as !
easily can do. and invites every either
to place his earnings In the govern
ment's keeping.