Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-11-18
THURSDAY. ............NOV. 1S. 1897
posTAL SAVINGS BANKS.

For its part, the Dispatch is quite will
ing that the Federal Government should
try the experiment of establishing
savings banks in connection with our
Post Once Department but we cannot
say we think that the enterprise will be
as successful as many expect.
Most parts of our country are full Of
good, trustworthy savings banks and
building and loan associations, which are
willing 10 pay far more interest to de-
positors or subscribers than the govern
ment would. And reviewing the statistics
of these institutions as whole, 1t is
found that an astonishingly small num-
Der OF them have failed or proved un-
worthy of the trust confded in them.
ally been in communities that suffered
from acute boom mania-in localities
where cornfields were sold for town lots
and at prices that were amazing.
The savings banks and building ana
loan associations will continue to serve
the purposes Of small savers who wish
10 see their capital increased by additions
of fair amounts OF interest. But there is
another class that it is quite likely the
postal savings banks would serve. This
is the people of that sort who, being
afraid of all manner of banks that now
exist, tie up their savings in old stockings
and hide the stockings away.
The number of such persons is not
small. and we suppose their holdings
would foot up a considerable sum-not
as large a sum as is generally supposed,
but still a very respectable one. Posi-
bly, many Of these persons would eonfide
their capital to the postal savings banks.
We say possibly. because some Of these
savers are misers, who like to have their
money by them all of the time, SO that
they may often take IL out and count 1t
over. Money is their fetch, and they
will not willingly relinquish the privilege
OF having it always at hand to worship.
But IL the savings banks do not draw
upon the old stocking depositors we do
not see from whom else they could draw.
1t is true postal savings banks have been
very successful in Europe, but it should
accustomed to very low rates of interest.
and there are not so many corporate
savings banks and building funds there
az we have.
Again, England and France are already
puzzled TO know what to do with de-
posters money. They must always keep
in hand large part of it to meet daily
withdrawals, and counting the interest
paid deposltors and the costs attached to
the system, they have no great bargain
However, 1t may be argued that the
chief object OF the system is to encourage
economy and thrift among the people,
and from the information before US we
must say we believe 1t has had that eff
feet. or course, our government could
not hope TO accomplish more than the
European governments have done; nor
indeed, SO much as that but stili the
system might become serviceable here.
Certainly postal savings banks would
prove to be great boon TO our country
people and to those timid and distrust-
ful townspeople who fear that the exist
ing banks will break, and who would
rather take the risk OF having their
money stolen, or, in the case of notes, OF
having It burned or eaten by rats OF
reaches, than put 1t into either national
or State banks.
Really. It would seem that in this coun'
try the greatest good that could be ex-
pected from postal savings banks would
be the convenience they would prove 10
be to those country people who are now
altogether without banking facilities.
And the greatest harm they would dc
would be In withdrawing large Sums Of
money from the interior and banking Il
UP IN the Treasury vaults at Washington
Oar conclusion Is that if,upon the. whole
the measure seems likely TO Involve ths
government in little or no expense. whn'
Il cnitivates thrift and economy, the
postal savings banks should be estab
: iished. hi an experimental way at least
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