Omaha daily bee., 1897-01-03
POSTAL SAVINGS BANKS.
Urgent Demand for Their Establish
ment in the United states.
Irnhhn ,ltnne

| ment In the United states.
Minneapolis Times.
The hard times of the past three years
| the general lack of confidence in ordinary
banks and saving institutions and the
| consequent withdrawal of private accumu-
lations aggregating enormous sums from
circulation, have emphasized the urgent
| necessity Of the postal savings bank sys-
TEN in this country. Everybody sees now
that the benefit from this system would
| be incalculable. Probably there is no
other one thing that congress could do
at this term to allay the universal distrust
and discomfort among the people than by
the establishment of postal savings banks
similar to these in operation in nearly all
the other leading countries of the globe
Postal savings banks are for the ac-
commodltion of persons of small means.
Wherever they have been tried they have
proved remaI kably popular and successful.
They encourage small saving on the part
nf the industrious Toor by giving assurance
of absolute safety. The aggregate of annual
deposits in England is enormous. There the
system has been in operation since 1861,
whore one in seven of the population arc
depositors, The number of these depOsi-
tons is over 100000. and the amount de-
posted each year Is $3.50, ,OOO,O 900. The money
received in deposits Is invested IN govern
ment securities. The difference between the
income o! these securities and the inter-
est paid depOsitOrS has been more than Suffl-
cient to pay the expenses of the manage
ment. The wonderful increase of the num-
Der of depOstors and the enormous aggregate
of the deposits attest the popularity of the
system. In Great Britain the amount or
the deposits between 1850 and 1894 ex-
ceeded $1,000 900 900, More than a billion
and a half dollars.
Who can estimate the value of such
system OF savings to this country? There
L.. 4
while in Great Britain there are more than
10000 postolices that receive deposits as
agencies of the postal savings bank system.
II must be remembered, too, that the postal
savings banks do not drive out the private
savings institutions. The former simply
furnish accommodation for the many who
would or could not conveniently make use
of private savings banks. Great Britain has
more private savings banks than we have.
SO that while deposits in savings banks
have gradually increased during the last
quarter OF century, the increase of savings
deposits and the number of depOstors In
other countries where the postal savings
bank system has been adopted has been by
leaps and bounds. Eighty per cent of the
savings banks OF this country are in the
New England states and New York. In the
west and south. except in the large cities,
there are no savings facilities which the
great mass OF the poor. hard working people
implicitly trust as they do the government.
There is general distru8t of the banks. so
much so that the slightest rumor against
its credit will percipitate a run upon the
strongest institution. There is hardly
city or town of considerable size that has not
had experience with bank runs and bank
colapses during the past three years.
All this would have been largely prevented
If the postal savings bank system had been
in operation. The people would have had
their small savings safely Invested In
government securities, instead Of hidden
away in deposit vaults, or old trunks and
stockings. or buried In the cellars, All this
vast hoard would have been In circulation,
and such a stringency as we have under
gone would have been practically impossible
Postal savings banks are urgently needed
They would contribute materially to the
contontment the confidence, the wealth and
independence OF the people and encourage
them to thrifty and economical habits. In
this way they would be an element OF
strength and stability to the government.