The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-01
OBJECTIONS TO THE POSTAL SAVINGS
BANK

HeL Inat many persons Who three months
ago, would have unhesitatingly commended
the project of attaching a savings bank to
the postal department have, to-day, grave
doubts regarding it's necessity and practical
bility. They have been thinking the subject
ever, and the more they think the more OBJ
jections they can see.
Tho project is not new in this country
Mr.. Wanamaker, the efficient postmaster
general of the Harrison administration
urged it with the power of a successful man
of affairs, and 1t has not wanted at any
time during the past dozen years able and
and the newspapers which are attempt
ing to use the project as an advertising
scheme have presented no new arguments
They assume that many hundred thousand
dollars that are now expended and often I'M
wisely would be saved and boarded through
the influence and agency OF the postal saw
irgs bank. They assume that the people
have not now the opportunity for saving,
and that when they have it they will hoard
millions which are now little better than
thrown away.
Much of this is assumption, and some of
it is an ignoring of existing opportunities.
In all the Eastern States of the North am
pie facilities for saving money are afforded
by savings banks which are as absolutely
safe as human experience can make them.
In the aggregate they hold several billions
of the peoples money. Most of them take
the smallest deposits, and all of them are
managed with prudence and financial skill.
In all of the Western States and in several
of those of the South the building and loan
association is a well-established institution.
In this and neighboring States such an in
stitution is located in every considerable
village All Things considered, these institu-
tons have proved safe and profitable places
for the deposit of small amounts of money.
A few have failed, but in these instances
they had been diverted by schemers from
the real purpose of the institutions. There
are so many entirely sound and prudently
managed loan associations in this city and
at available points which will accept depos-
its of a dollar a month that there is really
no necessity for postal savings banks. In
this city there are several trust companies,
financially sound, which will receive and
pay interest on small deposits. The postal
savings bank, therefore. is not necessity.
On general grounds the postal savings
bank is Objectionable because it savors of
paternalism in government. 1t is propo-
sition to have the government do for the
people something which there is every rea-
son to believe they can do better for them
selves. We say, advisedly. that the people
can run savings institutions better than gov
eminent for the reason that in this country,
at least, government cannot do anything as
prudently and efficiently as individuals and
corporations. This fact is so well under
stood that it will not be questioned by an
intelligent person.
1t would cost the government large
amount of money to establish postal saw
ings banks. Every village of five hundred
people would clamor for such an attach
ment to it's postoffice, because it's neighbor
and rival with six hundred or thousand
people had secured one. The outfit of such
annexes to the postoffice would cost an i'm
mense amount Thousands of safes and
sands of clerks would be added to the gov
ernment's pay roll. To a service which is
not now always the best would be added
business entirely foreign to it-that of
banking. In the smaller offices ineXperl-
enced postmasters would be compelled to
take charge of the business if there should
be any, resulting in thousands of mistakes
~ Cnr1f
there are score of defalcations and fnan-
ciaI irregularities in postoffices where there
is one in any banking or loan association
At the present time. because Of a lack Of
business methods, the deficit of the post
office is $1O,O0O,000 a year. When the cost of
making them savings banks is added, with
the annual losses incident to misuse of
funds by postmasters and their en-
ployes, the annual deficit will probably be
trebled. And all this expense to attempt
to do that which is better done now by pri-
vate companies in three-fourths of the
country.
Furthermore, If the postal savings banks
should be in any degree successful in get
ting deposits they would collect the current
money In III
send it to New York or Washington. If
100000 should be collected in Indiana in a
year it would be 100000 taken out of the
channels Of circulation, depicting the
States available money to that extent If
two or three times that amount it would
produce a local scarcity and tend to adj
vance the local rates of interest. 1t is said
that the money taken from locality will
be reinvested in the vicinity in city or coun-
ty bonds 1t would take a long time to get
around to it, even if it were practicable AS
it is now, money collected by loan associa-
tons is loaned in the vicinity and goes into
lots, wages, lumber or is loaned to go into
business, which means wages and mer-
chandise.
The Journal is aware that just now the
side it has taken is not the popular one, but
after reflection and inquiry it is confident
that it is the side of prudence and safety.
COUNCILMANIC NONSENSE.
4,