The times. [volume] (Richmond, Va.) 1890-1903, 1896-08-30
POSTAL SAVINGS BANK.
MR.. EDwARD ATKINSON SAYS THE
-POPULIsr METHOD ISABAD ONE.
He Argues That 1t Would be Dfsadvsn
tageous and Prove Impracticaoie
to Ia Government.

UtabAOAfA 10 INA a 49,
ment shall be- established in which tno
savings OF the people may be depesited'
This demand implies that there Is a isrse
fund OF savings in small sums widely
distributed which ought to be put In safe
custody so that the money OF when IL
consists may not be boarded, Kept ia
stockings, put into stoves. or placed wnere
rats and mice have gnawed 1t 10 pieces
This demand OF the Populists shows a
true instinct, but a bad method. There
il nothing so useful IN a community as
tho right method of putting small saw
ings In safe custody, but in order that
this money may be used 1t must be IN
vested in some form OF security yielding
interest. Now let us put the question
what would the Government do with tho
savings of the community II they were
put into the postal savings bank in order
TO get interest and also in such q way
as TO be ready to pay OH the depositor on
demand? This is rather an interesting
problem. Let bs see what it comes TO by
comparing the savings or the people OF
Massachusetts, which they have deposited
in the savings banks of that State with
the sum which would represent the saw
ings OF the people of the United states
were Alff VI tHLtA AAAN ~AR 49,
tho same opportunity TO put their savings
where they would be well invested and
well cared for.
II must first be observed that there is
no State in this Union which possesses
such meager natural resources as the
State of Massachusetts. 1t is 4 trite say
ing hat its natural products are only
granite and ice. That is not quite true.
The agriculture OF Massachusetts is pro-
life and prosperous, but It IS OF the mar
ket garden sort. requiring a great deal or
Intelligence and a very considerable
amount OF capital. The State, as our
Southern friends say. could not bread it
self for more than one week, although
what corn we do raise is made In larger
crops per acre and OF better quality than
that OF almost any other State The peo-
pile OF Massachusetts get a living by I'M
porting crude products, food. fuel, hbres.
>metals, etc, from all the other States.
working them over and selling them. In
;this way they lave attained a large meas
ure OF prosperity although more than one
kfourfh part OF their numbe are foreign
born and more than one-half Of foreign
sorigin either by immigration or once re-
moved from the last immigrant.
According 90 the last report of tho
commissioner OF Savings Banks the de-
iposits and reserves OF these banks
10 four hundred and sixty-six
million dollars C466. 425. 722) The number
Of open accounts was 1902, 40, represent
ing IA little less than that proportion or
'the total population because a good many
thrifty people keep all their savings In
lsavings banks, and when they have reach
ed the limit OF one they open an account
with another.
About every other person In tho State.
. say 10000, has a credit at a savings
bank for an average deposit Of three hun
dred and sixty dollars $500 The average
deposit per capita OF the population IS at
least one hundred and eighty dollars
e1lS0.) There a be little doubt that with
cthe spread Of common school, technical
and manual instruction md all tho
modern appliances making for progress
that the people OF other States will secure
as time goes on as large a return for theis
tabor as the people OF Massachusetts do.
and IN the greater number OF States they
will not be obliged to spend as much on
the cost of living; therefore when they
become as thrifty and as we'll informed
how 10 use their savings they Will grad
ually attain as large an annual sum OF
money TO be deposited somewhere as the
people OF Massachusetts, o possess.
Suppose they reached an even condition
and each one had on tho average "a much
in the Iavings bank as the average pee
head OF the state OF Massachusetts. $50.
There ara now over seventy-two million
people in the United States. II each one
had as large a deposit per capita the total
deuosit would come 10 a little less tnan
thirteen billion dollars, rather a large
sum for a p0st-ofice savings bank TO
handle.
O2.O0OOOOXSlsO. sl2.s &c., 10000 But let
rs nut IL I'm a less eXtrayagant way.
There is no reason in the world why
every mothers son OF the people or TINS
country should not "a annually as much
as the people in Massachusetts, do. Ihen
what? The average annual deposit OF mo
people of Massachusetts in excess OF thelr
Withdrawals is about ten dollars CIV
each. Suppose even that small sum We're
put into the post-ofiice savings bank
072O.O0O .OO0) what would the government
do with III How could the Treasury
Department invest it, some one says.
Issue United States onds." Well thai
would be merely mourning a debt on
which interest would have 10 bo derived
from taxes and tho money would still be
In the custody OF the Government. and
would take up all outstanding bonds on
oue years deposit. How would the Gov
rnmcn spend or use the money us
revenue from taxation now sufiices 10
meet all the expendituOres II ought 10
make. Shall the savings Of the COM
munity be invested or used in e~xtravagaht
| expenditures yielding no income but cost
ing large additional sums for their MAIN
tenance? The fact Is hat a postal saw
ings bank can only be safely established
In countries Ike Great Britain where
there is already existing a very large ma
tional debt on which the interest IS paid
by taxation. The deposits Of Great Bri-
tain in the postal savings bank are in
vested in the bonds or evidences Of debt
Of the nation, called "cons0ls." Would
an advocate Of a postal savings bank APP
prove the lending OF the money deposited
in the custody Of the United States TO the
several States counties. cities or towns?
Probably not because If hat were a safe
system II would be better that each
State. county. city or town should accept
the money on deposit m issue its own
obligations directly 10 the citizens who
could then keep some control over the
expenditure or the money and see that
IL was not wasted.
Many persons in distant States rave no
true idea Of what the true savings bank
ia. There are banks called savings banks
in many States which are merely ordi-
nary banks OF deposit managed by owners
or corporations for the purpose OF max
ing money like any other bank. The
savings banks or the Eastern and Middle
States are very different. They are
trusts the main purpose Of which IS bene-
fit 70 the community. The executive