The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1897-12-15
No Postal Savings Banks !?

master Oenefal darJ scneme ot pos'
tai aavings banks should be opposed by
every Sootbern Democrat 10 congress-:
Il ia paternalissic. and therefore
uudemocrasic. The general govern
e.pmeDt has no greater right cor rea.
sou to copssrain the people TO save
mooey than it has to prevent them from
spending it. These are matters pecu-
liarly to be determined by individual
judgment.
It is no. proper function of the
Federal government to conduct bank
ing business. Our people have been
for years endeavoriug to make it abao-
don its monopoly Of the no.e-issuiDg
feature. because IN this Is bas proved
inefficient and oppressive. and it would
be folly ADD qualification for us now TO
invest it with the power to conduct the.
savings department as we'll. What the
great government at Washington lays
hold 90 it does not readily release, and
monopoly is the ultimate result of its
entrance into any field
8. It would be uofair to the existing
savings banks for the government to
enter the list against them. These
banks are owned and controlled by Cit
izens and are conducted with cousidera-
tion for deposi.ors as we'll as sfockbold
ers They pay, iD the south. 4'or 5
per cent. interest, almost twice as much
a. it is proposed that the goveromeOt
shall pay. aod they are cooservauvely
and safely msoaged Yet at lover rates
of interest the government banks won'd
take large proportion of their de-
posts from them, because Of the effect
on the average mind of the superauous
pledge Of the ..booor ADD credit" of
the United States as security No
complaint is made against the present
savings banks except that there are 10:
enough Of them But the need of
them. in the south certainly. is more ap
parent than real In most places
buildiug and loan associations are sub
s,isu,es for them, and pay far larger re
turas than aoy savings bark could
Moreover. BY their system of foes and
penalties they compel savings as bank
accounts caoDot do
Il would require the government
either to hupt Investments for the mon
ey deposised-wbich would result in
favoritism, the preference Of those in
the Dor.h and east over those in the
soutb-or else take money out of the
coumon treasury to pay the interest
which would be robbiog the non-saviog
taxpayer TO reward the saving taxpayer
II, oo the other hand the government
shsnld make profit out Of the banks.
that profit. made with the money Of de-
positors. would 60 into the treasury TO
be applied to public purposes. apd thus
the non-depositor would profit by the
savings Of others. Looked at from
any point Of view the scheme is sure
to result 10 iaequalsy between those who
cave and those who do not.
5 The greatest practical objection
to the scheme. however. ia that it would
draio the south's money away from the
south. and. God knows! We have drains
enough already in the pension list.
the tariff tolls, the Interest an
loans. the dividensd on mill and
other Investments. the surplus
earnings Of railroads. aud so on The
money deposited 10 the postal savings
banks Of the mos. obscure places in the
South would 60 to Washington. and
there of thence would be invested by off
cials domiosted by northern io6uences
the resnls of which would be that the
south's balance 10 these banks would
pretty accurately represent the sum of
southern money held Oor owo saw
Jugs banks keep their deposits at home
most Of their investments are at home.
I, is far. far better for US that they shall
continue to handle such saviogs as the
existing drains nortbward permit Us TO
make
We have thought the question over
long aud carefully, with desire to ad-
wise for the best interests of our people;
and these are the conclusions we reach.
Tha habit Of saving is good one.
although often carried to excess We
would like to see every southern family
with something laid by toward CON-
peteoce, and we have besitated to op-
pose sny measure which might make
sayicg easier. But We have been fore
ed to the cooclusion that this scheme
promises harm to the south Our saw
logs banks can meet any real demand
for a multiplicity OF deposit points BY
appointing agents at all towos who will
receive and forward moaeys. Let US
bold hard to what remains to US of
banking functiops. Let Us keep our
little boards at home The State.