The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-02-26
POsTAL RANKS CRITICIsED.

The most serious attempt which has
postal savings banks are not desirable
or practicable in this country is given
in an interview by Mr.. E. H. Moulton,
of Minneapolis, in the Evening Journal.
Mr.. Moultun is an expert on this sub
3ect, from his connection with one of
the greatest savings institutions Of the
country, and is not unnaturally OPP
posed to the invasion of the field by
the government. He probably states
the case as strongly and fairly as any
one could, but still the objections that
he advances do not seem to us sufficient
to condemn the postal savings banks
principle. First and foremost he puts
the difficulty of finding occupation for
the large sums of money that would be
turned over by small depositors, and
which the treasury would have to in
vest somewhere. He says, which is
true, that other countries having gov
ernmelrt savings banks have immense
bonded debts in which the deposits
can be sunk. With our total of less
than $1,OOO,OOOOOO Of bonds, and a large
portion Of these held to secure bank
circulation, he thinks that there would
be more money deposited in a year
than would consume the entire avail
able bonds.
OF course, this is all, necessarily
conjecture. One cannot take the ag-
gregate deposits in savings banks, even
in those of the purely mutual charac-
ter, and assume that these would be
transferred to the federal treasury.
scheme should permit the deposit Of
more than a comparatively small
amount, say $500, in any one account or
for any one interest. The idea of the
plan is to furnish a secure invest
ment for those whose savings are small.
A large part of those now depositing
in savings banks organized under state
laws have accounts running up into
the thousands These would be barred
out. SO, too a great many people, for
the sake of convenience, and of the
somewhat higher rate paid, would
keep their money where it is instead
of changing from their local savings
bank to the federal institution. We
think that the aggregate deposits in
country like this, and with our saw
ings bank system already we'll estab
lished, would fall far below the com
mon estimate, especially if a limit Of
$500 were fixed, as it should be. If
the deposits should exceed expectation,
there is the deep waterway between
East and West to be constructed
which could well absorb part of the
funds. With an interest rate not over
21a per cent and a maximum of $500
on deposits, however, we believe that
this question would take care of itself.
Mr.. Moulton himself seems to Civ,
color to this when he states that,
In his experience, there is no re-
spouse to the offer to open accounts
for depositors as small as 10 cents.
He says there is no demand for con-
veniences for the very little depositors.
If that is true, it answers his other
argument effectively; for if the postal
savings bank be so regulated as to ac-
commodate only the little depositor.
for whose benefit it should be estab-
lished, and if the little depositors are
few in number, then the total of these
accumulations would not be difficult
to dispose of. There may be something
in his idea that it would be a great
benefit if all the states were to adopt
the New York law governing savings
banks. 1t is of little use, however
to dwell upon schemes like this for
uniform action by the states; than
which nothing is found, i'll experience,
more impracticable. For many years
1t has been evident that it would be
an immense gain If the states should
enact identical legislation on such sub
jects as insolvency and divorce, but the
tendency is to separate, rather than
to come together. It is as difficult for
states as for individuals to think alike
on these subjects. Nothing is surer
than that the diversity Of laws govern