The San Francisco call., 1897-02-27
or nearly SO per cent more than the total

or nearly so per cent more than the total
bonded National debt.
If we should take in deposits to this extent
they would enable us TO redeem all our cut
standing bonds of 1907 at the smallest prict
and have reserve OF nearly $500, 900, coo lei /
which we could keep on hand lor use in par
for other purposes, as seemed most convenient
That such reserve would more than be am
pie. the experience OF existing savings banks
aDundantly proves
The aggregate savings deposits in the
United States were 81, ,524, ,S44 500 in the fiscal
year 1890, $1.623 074. 749 in 1891, $17I2,-
1863 026 in 1892. 1888, 150, ,957 in 1893, 81
747. .961 ,2S0 in 1894, aud $l,810, ,597, ,023 in
1895. The growth has been almost continu-
Gus. Even the panic OF 1893 caused n decline
of only about $37, 100000 in the amount of
deposits, and lack of confidence in the safety
OF private lnStftul1ons-ln many cases too
well justifed-was largely responsible for
that.
1t is evident that as a rule new deposits
may be safely counted upon to balance with
drAwals In the absence of DOUBT as 10 the
solveney OF the Government.
The entire record of the American savings
bank system from its origin in 1916 discloses
only four instances in which the aggregate
deposits have declined from Cne year to the
next There never has beeen year in which
the net Withdrawals have reached $780,
900, 600. If the savings deposits had been
secured by the credit OF the Government 1t is
doubtful whether there could eN er have been
any net Withdrawals at all
The value OF English postal deposits has
steadily increased every year since the estab-
lishmenl OF the system in 1861, although the
deposits in private savings banks are no
greater now than they were thlr.y-fve years
ago and have huctuated from year TO year.
The fundamental vice. OF our present cur
rency system, according to ''sound money"
authorities, is that tne Government is doing a
banking business without having any of
ba nk's resources for tGkiI & care OF its notes.
Postal savings banks would give it absolute
control of the currency, ana this whether our
standard were gold, silver, bimetallic or fiat.
The chief objection to the Postal Savings
Bank system from abstract point OF view is
that the Government has no means of invest
ing deposits 10 advantage. 1t would be easy
to mention inves tmenlS IL could safely make,
but we have no need to dist turb ourselves
aoout such things under present conditions.
The Government now has the best possible In
YES tment in It's own bonded debt.
In Great Britain, with little more than half
our popula tion there were 7,579,709 savings
banks deposits IN 1894. Evidently Create
Britain taps stratum o1 population tnat our
savings banks do not touch.
The little riils OF private thrift continue to
fill the reservoir OF pubic credit We are al
most the only great Nation that entirely ig-
nores this natural association, n4glecLlng at
once the interests of the people who need abb
solute security for their earnings and OF the
Government that needs the use of those earn
ings. In France there is not only national
postai-s6vings system, but there are municipal
and school systems.
Among all the millions of depositors in the
pubic savings banks OF Europe not one has
ever Iosta cent through the failure of the in
stltution TO which he has intrusted his earn
ings. Compare that with the black trail of
ruined lives left by American savings banks.
In the three years before January /, 1897, the
loss of depositors in twenty-five bankrupt saw
ings banks in New York City alone amounted
to 81 AIS, ,061.
The recent failure of the Peoples Home Saw
ings Bank in San francisco robbed 10000
depositors of their accumulated earnings, left
many in destltution, drove others to suicide,
and others from good homes to the slums
But when the Government can end all these
evils at a stroke, not only without cost but
win pront TO itself, its persistent refusal to
do SO deserves some harder name than negli-
gence.
DR.. Ragan, who was blackbalIe at the
last meeting, sent in drastic letter COM
menting on the clubs degeneracy, and
explaining that the bringing forward Of
his name was mistake. On motion of
Max Pepper all proceedings in relation
thereto were expunged from the roll.
H. ?. Andrews, District Attorney of
Tehama County, was accepted into mem
bershlp and made a speech of thanks.
On motion $50 was ordered taken from
the CLUBS treasury to help swell the fund
Tor the relief of the unemployed.
The subject for discussion at the next
meeting Will be:
Res 11Ued, That general treaty of arbitra-
tion between nations to provide a court or
rounal for the settlement OF International
disputes between the treaty nations is a de-
luslOn and Tllare and as impractical as it ia
undesirable.
A letter from William ]. Bryan to
Charles Gildea, ex-president of the club,
making formal acknowledg gment of an in
vitation TO the last Iroquois banquet, e.
livered through Congressman Magu re,
was greeted with applause. Communica- Z
tions to the same effect were received
from Senator Morgan, George Fred
Williams Chauucev f. Black and ex-Gov-
ernor John z. Altgeld of Illinois.