The White Pine news. [volume] (Treasure City, Nev.) 1868-1906, 1897-10-02
POSTAL SAVINGS BANKS.
GERMAN US SYSTEM
OF MUNICIPAL CONTROL
Is Likely to be Supplanted by
National Authority.

bIclE ttDStSi ultIIltlOl. Oh 1iiSC
controlled by private capital have long
been established on a firm footing in
this country, but their advantages can
be enjoyed only by those who live in
the more populous districts. Again, in
spite of the closest government supervi-
sion, and the most stringent laws con-
trolling them, such banks are frequently
forced to the wall, and their depositors
either lose their money or have it tied
up in litigation for several years. These
disadvantages would be entirely lack
ing in a postal savings bank system
which would reach all alike and be us
secure as the very foundations of the
nation. The government has already
successfully assumed one function of the
banking system, that of transferring
money by means of money orders; why
should it not erv the people still fur
Their by becoming the custodian of their
savings? Other countries have tried
it and o have postal and municipal
savings bank systems in successful oper-
alton. With them it is no longer an
experiment, but an established institu-
ton. We would call the attention of
our readers to the following article:
William l.. Curtis writes from Ber-
lin to The Chicago Record hat in Ger
many the savings-bank system is man
arad nv fha rn11nipinn1 nntrnnn TNaJf in
stead of the national authorities. as in
England, France, Belgium, Italy and
other European countries. The system
dates back for nearly a century and,
with the exception of some unimport-
ant details, is uniform Throughout the
empire. German thrift is proverbial.
There are no other people in the world
who can do without Injuries and things
that they do not actually need with SO
great a degree of contentment. From
the cradle the children are taught econ
omy. 1t is as much Il matter of educa-
ton as the catechism. In some of the
schools the children are instructed to
gather during their play hours and on
their way to and from their homes all
such apparently valueless objects as old
bottles, tin cans, refuse metals, ETC.,
which are sold to the iunkshops and
the proceeds deposited to the credit of
the child in the nearest savings bank.
The same spirit that inspires this econ
omy has caused the number of deposit
tors in the savings banks of the empire
to exceed the number of households.
1t is often the case hat every child
and every servant in Il family has his
own account at the bank, which, when
it amounts to a certain sum, is with
drawn for permanent investment.
The usual rate of interest paid by the
municipal savings banks in Germany is
3 per cent and, although their manage
ment Is intrusted to the municipalities,
the banking inspectors OF the general
government exercise a supervision over
them. There is usually a general Office
with a director in chief at the city hall,
whose principal duty is to receive re-
m%ittances from branch offices that are
established in every ward. These funds
he invests in government bonds or in
securities of equal value. The latitude
of investment is much greater than is
allowed the postal savings bank author
tiles in England and France. The funds
may be invested in gilt-edge real-estate
mortgages and even in the erection of
buildings, but before this is done the
proposition must be submitted to the
committee Of the common council which
has jurisdiction over the savings banks.
This committee, which is composed of
practical financers, bankers. merchants
n manufacturers and men who are in
the habit of handling money, acts as a
sort of board of directors for the sys-
tenn.
In Berlin there are seventy-nine
branch offices with 483, 600 depOsitors
out of a population of /, 800, 900 and the
total deposits are a little more than
$40, 900, 900. In Dresden the savings
banks show a still larger utility in pro-
portion to the population. Although
the number of people in Dresden is only
about one-fifth as many as in Berlin
there are half as many depositors in the
savings banks and the deposits exceed
S22, 0OO, 900. In some of the other cities
the proportion is much larger. In the
town of Aix-la-Chapelle for example,
with only ITO, 4o9 population, there are
over lO6, 600 depositors, with credits of
more than 800, 900, 900. In Altoona. a
city of 149, 900 people, there are over
100, 600 depositors, with nearly $40, OOO-
900 to their credit.
This illustrates the extent and the
value of the service; but there is a great
deal of complaint from the ~agrarians
that no provision is made by the gov
eminent for receiving the savings of
the farming population, and an agita-
ton has been going on for years in favor
of a transfer of the municipal system to
the postal authorities and the adoption
of something like the French system.
The Kolnische Zeitung of a recent date
contained an interesting article on this
subject in which the a Advantages of such
a transfer were set forth at length and
the necessity of making provision for
the farmers as well as the mechanics in
cities and the larger towns was demon
strated in forcible language.
st cannot be denied, . the writer
says, that hundreds of thousands of
people in the empire would gladly lay
if they were not prevented by INSULT
Gent opportunities. y x An i'm
perial postal savings system would be
to the agricultural classes, for there is
a postoffice within convenient reach of
every farmer, the postal system is every
where trusted, and would not only furn-
ish a convenient opportunity for depos-
It's but an easy method of payment"
The late Emperor Frederick was a
great believer in the postal savings
bank system, and if he had lived it is
probable that it would have been adopt
ed in Germany long ago
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