The Portland daily press., 1897-11-29

able to pay I-a per cent to depositors
and still meet all expenses. In Canada
the rate Of interest paid is now per cent.
1t has l-2 and per cent. But in Can
ada the government is eager to get the
money, and therefore can afford to pay
more than could the United States, which
has no use for the funds, but has to in
vest them.
Interest accrued will be added to prin-
cipal on the books OF the central bank
June 80 of each year. that being the end
of the fiscal year. AS it would be i'm
possible to have all pass books sent to the
central bank at one time, section seven
provides that they shall be sent in on the
anniversary of the first deposit, when the
entry of interest shown on the books of
the central bank shall be made in the
pass book. The principal idea in having
the pass books sent to the central banks
once year is to provide an additional
check on postmasters, and to reduce the
possibility of misunderstanding and
blunders.
The other sections merely deal with the
administration OF the law.
NOT REGARDED WITH FAVOR.
What Portland Financiers Say of the
Postal Sayings System.
Since the announcement that the Post
master General has called the attention
OF Congress to the postal savings bank
system, State Bank Examiner Tim berlake
has issued the letter which is printed be-
low and which is self explanatory. Satur-
day the PRESS asked the opinions of
several Portland gentlemen on the sub
Ject and the interviews printed below
show that they do not look with favor
on the scheme to establish postal bank
system in this country. Their remarks
will be read with interest by the people
who have made deposits in the savings
banks of the state and business men to
whom the question of the manner Of in
vestlng the acoumulations of the people
OF Maine is a question of great moment.
In his letter. Mr.. TimberIake says:
Augusta, Nov. 20, 1897.
uear Sir:-I have no doubt your atten-
tion has been called to the recommenda-
tlon OF the Postmaster General-that
Congress pass law establishing Postal
Savings Bank System-and that you have
read the many comments upon the same
whlch have appeared in the public press
during the past ten days.
The adoption of any such system
must seriously affect the prosperity of our
Savings Banks and Loan and Building
Associations, and would, l believe, ul-
tlmately to very large extent displaoe
them and compel them to, in some way,
wind up their affairs. I do not believe
any private association can successfully
compete with the national government in
any kind of business. The provisions of
the proposed bill are such that but little
of the money collected from depositors
would, or could, be invested in Maine or
in any portion of the North and East.
AS matter of fact, the friends of the
measure claim that for many years to
come all of the funds would be invested
in the securities of the general govern
ment- The result would be that many
millions of capital would be withdrawn
from North and East and either be CEN
tralized in Washington or invested in tt Q
securities of the large cities and counties
OF the West, giving those places the bene-
fit Of an extremely low rate of interest.
The effect upon business enterprises by
thus withdrawing from them the i'm
from savings institutions, must be disas-
trOus
Without stating to you more fully the
many objections to this measure that
suggest themselves to me, I should be
pleased to have you indicate to me, in
your own way, your views upon this
matter.
1t is my purpose to invite the savings
bank people and other prominent bust
ness men of the State, to give me their
views upon this subject. Should the ex-
preston of opinion in opposition to this
be as unanimous and as earnest
as my own observation leads me to OK
pect, will then take some steps to try
and induce our Representatives in Con-
gress TO oppose its passage.
Thanking you in advance for any atten-
tion you may give this matter, am
Respectfully yours,
FREMONT E. TIMBERLAKE,
Bank Eyeminer