The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-08-28
POSTAL SAVINGS BANKS.
Renewed Agitation for Their Estab-
iishrsspar.

Slfafe Express.
Tie recent announcement made by sea-
stor Mason. Of Chicago. that ne proposes
70 devote a god 4eal of lis tire during
TIE present summer 20 perfecting a postal
savings bank scheme Ass aronsad the pa
peTs q his city 20 renewed comment al
the feasibility q such an institution in this
country TIE SYSTEM Is designed 20 give
lae peore7 CLASSES absolute security for
their earnings a. moderate rate q inter-
esq. L 5 likely thaE this rate OF interest
wsH not egaal ,hsS paid By ihe savings
hanks or the country ST the preser. time
oot the tr1st gorE illness OF The institution.
the government itself. IL believed 70 be of
more value % tae deposit0rs than ire / Or
l's Per cent interest lost Concerning the
favor into whish the postal savings banks
nave grown ia England. the ChicS 20
Tlnes-Hsr says:
The growth OF the postal savings bank
sysiem OF England during tne last ten
years demonstrates in remarkable man
ner It's popularity with the people. In 1855
there We're ass. Sss depoStors. IN 1895 they
had increased 10 II 81 81. In 1885 the value
Of the postal deposits for the year was
1855. ~ In lsS these increased 20 ESS.-
es.eso. In las the interest paid 70 deposit
ors or placed 20 their cvredit was & iss so
In lss the interest paid 20 depositors
amounted 10 = - IS. The total amount
standing % the credit Of deposltors jumped
from k5os-A55s In ISsS 20 e., SIS ,ss5 ia 1856
In ISIS there were only eighty one such
banks in Canada, and the balance 10 the
crediE Of depositoTs then was S.e6 o.. IN
June, lss'. there were 500 banks. and the
balance due deposgtoTs amounted 10 $751;
0o10oa"
There is little doubt that an institution
Of the kind would be largely patrouized in
The United States At the same tiTne. how
ever, The government would encounter an
ais ~ IL Frs Ia
sanizaGi0n and conduct. Tae mast serious
question that would arise would concern
the securities or investments The chief
II these are the government bonds. In an
swer 10 this the CaieAEo Chronicle when
opposes the scheme. says that the amount
Of such bonds available fer such invest
nent al the present time probably does not
exceed S240.0 so. The entire bonded debt
OF the United States, under the present pol
icy, Will be extinguished in a quarter OF a
century. The government would be
obliged 10 look to other Investments for
the funds arising from the system. and at
the present time there are apparent only
those securities in which the ordinary
bank deals. These, for the greater part.
are of variable or fiuCtuatins values, and
il is evident at oncs that government
banking system that would deal in such
securities is out of the question.
In his report of 1892 Mr.. Wanamaker
furnished the r04oWinS interesting ana
seemingly practicable plan:
Designated postoffces to receive on de-
post sums Of not itss than 81. which may
be in postage stamps or cards to DC fur
nished, interest u be added from the be-
ginning OF the net month after deposit, on
sums Of not les than $40. All deposits 10
be transmitted to the secretary OF the
treasury, who shall. at the beginning OF
each half year Fl the rate Of interest 10 be
paid TO depositors. Said interest TO bs
one-half OF per cent. less than the cur
rent rate at savings funds and private
banks at the monetary centers. The Sec
rotary OF the treasury shall keep account
Of deposits by states, and 10 put the
money in circulation shall offer the funds
arising in each state as a loan to the ma
tional banks of the same state at rate
of interest 10 be fixed by him, and these
sums shall be declared trust funds and
shall be a preferred claim against the as
sets OF the banks.
This plan would reduce the work for the
government to a minimum, and would OBJ
viate the necessity of a commission TO in
Yestigate the detail OF the loans. II would
seem that IL would find considerable favor
with the national banks and certainly no
juster method for the distribution OF the
funds could be devised than TO circulate
them in the states from which they were
derived.