The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-08-23
SAVINGS BANKS.
The Greatest of Trusts and Largest
AccumuIatOrs OF Capital.
Leslie's Weekly


AccumuIatOrs OF Capital.
Leslie's Weekly.
If some of the campaign orators who
With V1gor and in picturesque language, de-
nounce trusts and the accumulation of cap
1tal by syndicateS and corporations were TO
speak OF the savings banks of the United
states as the greatest of trusts and the
most gigantic accumulatorS of capital they
would alarm no one and their accusations
would provoke nothing but ridicule. Yet
the assertion would be far more accurate
than are many of the charges they are fond
of making.
In New York State alone the savings
banks hold nearly $500, 900. O0O of the reserved
savings of the people, and the books show
that the average to each depositor is little
over $500.
These banks are under the direction of
men who have no financial interest in them
for the trustees serve without pay and the
officers receive no more than a moderate
salary. There are probably less than a
thousand men in all who have the manage
ment of these banks and the control of this
colossal sum of money. The greatest of all
the industrial combinations commonly
known as trusts" commands no such vast
amount of capital, and not one of the great
railway systems OF the United States is able
to make such report of possessions and
financial operations as the superintendent
of the banking department of New York
has just published with respect to the de-
posts and growth of the savings banks of
the State.
No complaint has been made of the ten
QGncY OF those VINO earn comparatively
small amounts each year to save as much
as possible and put the savings with those
of others, thus making in the aggregate a
vast capital in the control of a few men
who do not own a dollar of it. But this
tendency has caused no alarm, because the
capital has been, on the whole, wisely and
safely managed, so that the proportion of
losses to deposits is almost inappreciable.
Besides, the money has been of great
service to the community, as II makes
building public and private improvements,
QGNGIODIDentS DOSSlDIe. / must
be profitably lent or invested, so that the
depositOrs may receive the interest which
is promised to them.
1t has seemed to many men of prudence
and experience that the time will come
when it will be deemed wiser, both for
financial and for reasons involving states
manship, that the government Itself be-
come the custodian of the saYings of the
people. One of the ablest of the LoStmas-
tiers general of the United States, Thomas
L. James, long aeSo earnestly advocated the
establishment of postal savings banks, both
DIS a sound financial policy, of benefit both
to the government and the people, and be-
cause every depositor would have that di-
rect, personal and active interest in the
government and it's wise administration
which the relation of creditor end debtor
always establishes.
The government would have such advan-
tage as might properly be secured through
the control and mapagement of the saw
possess not only perfect confidence in the
safety of their savings. but would feel a
sense of personal interest and responsibility
in the government not possible for many
who indirectly pay taxes for the support of
the government.