The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-11-17
Where Shall The
Postal Savings Go
From the Pl iladelphia Press.

From the Pl iladelphia Press.
Postmaster General Gary, in his first
annual report, joins the large number of
persons who urge congress TO establish
postal savings banks. Unfortunately, Mr..
Gary does nothing toward the adequate
solution of the one crucial problem which
must be met before this step is taken.
Where shall the deposits in postal savings
banks be invested? Answer this qucs-
ton and coagress would establish these
banks before the close of its next session.
Until it is adequately answered congress
ought not to establish them. Postmas-
ter General Gary sees, though rather
dmly, that is the cruX of the contro-
versary. He attempts answer and solu-
tion. Neither is adequate.
o.
No one doubts the value OF savings
banks. All deplore their absence over
large sections. No one questions that the
postOtiice could safely receive deposits.
The cost of the new step would be small.
Its advantages, direct and indirect, would
be great Why not establish these pos
tai savings banks then? Because no one
has yet shown a wise way Of investing the
deposits. Any one can receive deposits.
This is the simplest thing in the world.
The difficulty is to use deposits so as to
get a steady per cent. above expenses.
This is the hardest thing in the world.
Money does not earn interest of itself.
With big national debt which no one
expects TO pay, this can be done-up to n
certain point, The English treasury is
now meeting a growing deficit on pos
tai savings banks deposits because at
present rates oonsCy, in which the de-
posits are invested, do not yield the in
tercst promised depositors. France cam
not oven refund because it would involve
reducing the interest on its government
savings banks deposits invested in rentes
and no administration dare risk that
These are grave dangers. In the end both
England and France have got to pay by
taxation the interest on savings bank de-
posits. Is this wise? Is it safe? VIII
any property long be secure when the
property of all is taxed to pay interest,
not earned on the deposits of some?
o
This country has no permanent ma
tional debt, "There Is enough OF ma
tional debt" says Mr.. Gary, evasively,
''if it should be used for that purpose to
afford investment for such savings lin
postal banks) for ten or fifteen years" I"
The postmaster general speaks unadvis-
ediy. The debt today Is SSi7, ,3Gj, 500. The
government, of which he is a part, Is
pledged in ten or fifteen years" by the
sinking fund act to pay off at least $780,
| O0O,C 900 of this debt. The party which Mr..
Gary represents Is pledged to a still more
rapid redemption. The national banks
hold 1927, 1850 security for circulation
now, and are steadily increasing this.
Savings banks and insurance companies
hold $3.50 100000. There are $27, 100000 held
abroad. OF tho United States bonds,
therefore, there are $35O,OOOOOO now held
| by banks. Add those abroad and in the
hands of permanent investors and half
| the debt is accounted for Nearly all the
other half the United States is pledged
to pay I'm "ten or fifteen years" How
much is left for postal savings banks ?