The National tribune., 1897-11-18
POSTAL SAVINGS BANKS.

Ill ldVOr Vi OSGal Savings DaHhs.
The NATIONAL TRIBUNE has been
favoring the establishment of this insti-
tuition for many years, and firmly be-
lieves that it would be of very great
benefit to the people.
We are about the only civilized Ma
ton in the world that is without this
system, and wherever it has been tried
it has worked admirably.
We do not know just what plan the
Postmaster General will favor, or
whether he has any special plan in view.
But the general idea everywhere is the
same. The Postal Department issues to
each applicant card with spaces on it
for pasting stamps to the number, say,
of 10 or Is. 1t issues special stamps
for this purpose, of the denomination of
one penny in England, a pfennig in
Germany, a centime in France, and so
on. Whenever the depositor wants to
lay by penny, pfennig, centime, ETC.,
he buys one of these stamps at the shop
where he may be trading, and sticks it
on his card When he has his card full,
he takes it to the postoffice, where an
account is opened with him, and his de-
post is placed ct interest. The rate
of interest varies in the different coun-
tries, being usually about that on the
public debt.
The effect of this, wherever tried, is
marvellous. The real "money power
in any country is that Of the money in
the hands of the common people. All
the money in the country passes through
their hands several times in the course
of the year, in the shape of wages, pay
ment for produce, etc. If each of them
saves habitually only little of it, they
soon have altogether more than the
richest nabob or bank. Much the
largest stock Of money in this country is
that Of the accumulated savings of the
working people, mainly in New England
and New York, in their savings banks.
This amounts to about 81 800, 100000,
or more than three times the entire
money stock of the United States.
The largest amount is in New York,
where 1,5S5, 80 depositors have $751;
OS9, 449 to their credit, or an average of
about $500 apiece. The next is in Mas
sachusetts, where 1,214,493 depositors
have 1899, 995,570 to their credit, or
$329.25 apiece. The highest average
is in California, where 1922 depositors
have 25,420,765, or S722.50 apiece.
The smallest number of depositors is in
New Mexico, where there are but 1872,
with S37, 476 to their credit, or an
average of $20591. The smallest
average deposit is in Alabama, where
$3.50 depositors have S102,347, or an
average of 1882.
The establishment of postal savings
banks, by facilitating the practice of
saving, inculcates and strengthens the
habit The next step will be the issue
ance of small bonds, which will put the
public debt directly in the hands of the
people.
Another good result will follow, as it
has in other countries. The great in
dustrial and other establishments will be
capitalized, and the people encouraged
to invest in them, and the ownership
will eventually pass into their hands. Ii
will be the same with the railroads.
In spite of all the talk to the con.
trary, the greatest influence of the
"money- power" to-day is exerted by
the New England and New York saving.
banks. 1t is they which furnish the
greater part of the money loaned on
Western mortgages. 1t is their managers
who insist on the highest rates Of interest
and who demand foreclosures. OF course
they make money by thls-lhat is theil
business. But the hard ship comes il
in the difference between the interest
they pay their depositors and that which
they exact from the mortgagers. The
relief must come from having the money
lenders nearer home, and fewer middle
men between lender and borrower. Thi:
: is the course things are taking in France
, Germany and elsewhere. By develop
ing the practice of saving among the
Western people this will be accomplished
There will soon be an abundant fund o.
capital at home from which to borrow.
1t is to be hoped that Congress will
promptly take the matter up, and give
t us an efficient Postal Savings Bank