The advocate., 1897-10-20
ABOUT POSTAL SAVINGS BANKS.

this plank:
We demand that postal savings banks
be established by the government for the
safe deposit of the earnings of the peO-
pie and to facilitate exchange.
That is the first instance of a great
party demanding the establishment Of
government banks of any character. 1t
has been part of the POpulist creed from
the beginning, and now there is an ac-
tive and apparently earnest movement
in that direction by some private per-
sons. The Chicago Record, particularly,
is taking an active part in pushing the
subject forward The Advocate ac-
knowledges the receipt Of several excel
lent editorial clippings and reprints on
postal savings banks from that paper
And now we have, through courtesy of
the Record, the following reprint:
&c. w. Twining, cashier Of the First
National bank Of Monroe, Wis, has
written an article on postal savings
banks which is attracting some atten-
tion. Mr.. Twining says:
"'A savings bank pure and simple is
an institution that should be found in
every community. The ideal way Of or
ganizing and managing pure savings
bank would be under private enterprise,
with a rigid and effective government
supervision. AS a private enterprise
each community would receive the bene-
fits Of the circumstances under which 1t
is situated. Depositors, where rates are
high as we'll as safe, would receive a
greater rate of interest for their savings
than where rates were low. Under a
government scheme the rate would nee
essarily be level the United States over,
probably not to exceed per cent. But
the fact that such an institution at this
time cannot be made to pay from an
investment point of view depriVes the
citizens Of the greater part Of the United
States of it's benefits.
"In a pure savings bank, where the
absolute safety of the depositor is the
main feature, the expense Of manage
ment must be reduced to minimum, as
the funds deposited cannot well be used
with entire safety at greater rate than
3 or per cent. and in many cases less
than this. Such institutions must be
managed by board Of directors, the
members Of which donate their services,
the executive officer or officers and clerks
being the only ones paid for their work.
II a pure savings bank cannot be made
to pay as business investment, private
capital and brains will not be put into
it and the result Is thousands of men,
women and children have no places to
put their small savings where they can
receive return for them and at the
same time feel their money is absO-
lutely safe.
The only solution seems to be for
the government to establish postal
savings bank under such laws and rules
and regulations as will insure the safety
of the funds and a sure, If small, return
as interest to the depositor The benefit
to the depositors in such bank cannot
be overestimated. 1t would educate
them rapidly to a more economical and
thrifty manner of living; 1t would create
an interest in government affairs; it
would be Of great assistance in all lines
of retail trade, where cash payments
are desirable, as people would have
more available cash to give for neces-
saries and less incentive to spend it friv-
Olously and for luXuries. The manage
ment of such bank should be absolutely
apart from politics, so that confidence
in its management would not be shaken
by any political excitement or change.
If the question Of savings bank or no
savings bank were to be voted on by
the people the majority in it's favor
would be overwhelming.
The Advocate has given a great deal
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