People's voice. [volume] (Wellington, Sumner County, Kansas) 1890-1917, 1896-12-31
POSTAL SAVINGS.
REASONS WHY THE GOVERNMENT
SHOULD ESTABLISH SUCH BANKS.

/ We Are Behind Most of the First Glass
Nations In This Respect-views of Ex-
Postmasters General - Strong Support
For One of the Populist Demands.
The current number Of Annals Of the
American Academy Of Political and So
cial Science contains an article on post
al savings banks from the pen of Ed
ward 7. Heyn Of New York city. II is
one Of the most thorough expositions Of
the subject that has ever appeared in
the literature Of this country. giving
as it does condensed and satisfactory
history Of the experience Of dozen or
more European countries with savings
institutions inaugurated and directed
by government Mr.. Heyn has been at
great pains in studying the systems Of
European and colonial governments and
has made close study of the reports is
sued by the departments under whose
charge the savings banks have been op-
Grated. The evidence gathered from all
sources without exception points to un-
alleged benefits and the complete prae-
ticability Of the system. The point Of
Mr.. Heyn's article is in the application
be makes Of the lesson he has learned
by an exhaustive investigation Of his
subject. 1t is that the United States
should as soon as possible establish post
al savings banks, and he concludes his
paper by calling attention to special
reasons why this should be done. As a
demand for the establishment Of such q
system is among the "anarchistic" pro-
posals of the Peoples Party, the con-
Guiding portion Of Mr. Heyn's article
is here reproduced:
"Ex- Postmaster General John Wanna
maker, practical business man, is an
enthusiastic advocate of postal savings
banks. In three annual reports he urg-
ed their adoption and showed that there
was a steadily growing sentiment in IA
vor of the establishment Of such insti-
tutions. He showed that there were
$4,000, 900 people in this country who
worked for wages. The government, in
the interest of better citizenship, should
extend every encouragement TO induce
them to become savers He demonstrate
ed conclusively that private banks did
not afford protection, that they general,
" were not conveniently situated nor
open at hours agreeable to depositors.
/ He also showed that in most Of the
states the laws for the protection Of de.
positors were entirely unsatisfactory,
and that the banks were not carried on
under such conditions as to retain the
confidence Of their depositOrs. Mr.. Wan
amaker proposed that the secretary Of
the treasury should keep an account Of
all deposits by states, and, to put the
money into circulation, should offer the
funds arising in each state as a loan to
the national banks of that state at 2
rate Of interest fixed by him, and that
the same should be declared trust fund
and be preferred claims against the
bank.
"Mr. Wanamaker also suggested that
the money received from deposits could
be used for building new pOstoffice-.
The government could use the money
for the establishment Of a postal tele.
graph and postal package express and
take these agencies out Of the hands Of
corporations.
1.-THE widespread failure Of banks il
recent years renders the establishment
4 of postal savings banks an imperative
duty which the government owes to the
masses. Thousands have lost their saw
ings which they had amassed by hare
work and self denial. Many of thest
banks were loosely and dishonesty man
aged, and their affairs were adjusted
with great loss to their depositors.
''Hon. @. S. Fairchild, assistant sec
rotary of the treasury under President
Harrison, said that while attorney gen
eral of New York he was compelled t.
wind up the affairs of % savings banks
with a loss to the depositors of 81, 00O,
000 He became convinced that the pro
fessed guardianship exercised by thu
state over these banks amounts to moth
ing. The depositors were really without
protection against the dishonesty of The
bank officers. Three out Of every eigh
Of the savings banks Of Maine suspend
ed between the years Of 1879 to 1879
and in the state of New York % bank
failed with a capital of 81, 475, 661. On,
hundred and seventeen banks, brokers
savings banks and trust companies fail
ed during the year ending June 30
1891, having liabilities of over sSS,
900, 900 and assets of over $40, 900, 900
During the three years prior to Jan
uary, 1891, the failure Of state saving
banks and private banks in 20 state
numbered 2l0, with losses amounting
to over $50, 0O0,0 900. The losses in tn
same year in Ohio and Illinois, through
the failure of state, savings and privat
banks, aggregated over IS, 600, 900; tn
number Of banks in existence in the las
year was 1866; the number Of failure
was 70 and the percentage of failure
O.62, with assets amounting to Sc, 1875,
1879 and liabilities to 81, O24.62S.
"Hon. James N. Eckels, comptrolle
Of the currency, in his annual repor
for 1894 says:
"'No one can deny that banking ha
overreached itself in many communi
ties Profits are sought by several inst
tntions when one strong hank only coul