Middletown transcript., 1897-11-27

POSTMASTER GENERALS REPORT.
Mr.. Frederick 3. Bach will accept
the thanks of the TRANSCRIPT for a
copy OF the Annual Report Of Post.
master General Gary for The fiscal year
ending June 30, 1897. Though issued
from the Government Printing Office,
the largest printing establishment in
the world. we think the TRANSCRIPT |
could turn out as good 3 job typograph-
ically.
AS to subject matter The thirty-four
pages are full of interest. The
POSTAL SAVINGS BANKS.
Is the "hobby" Of the report. Its
arguments in their favor are convinc-
ing. More than half the States have
no savings. banks. In the fourteen
States and the District of Colum bia
where there are savings banks there are
more than five million depositors whose
deposits aggregate nearly two billions
of dollars. They are the poor mans
bank and their incentive to thrift is
now lost to the citizens of more than
half the States. Postmaster General
Gary proposes that the government
shall step in and accept the deposits of
the people paying them interest thereon.
He argues that large amount OF money
is now boarded away, millions of dol
lars, which does no one any good. The
people who have the money distrust the
banks and private enterprises. He
thinks they would have faith in the
government and through the savings
banks this dead capital would be put in
circulation. Not only would the de-
posting Of these funds increase the cir
culating medium of the country but it
would promote patriotism, make better
citizens. All the investors would feel
financial interest in the government
and would be favorable to the MAIN
tenance of the nations credit. Itwould
transform the careless and improvident
into conservative and dutifulcitizen.
The Post master General argues that
savings banks would be an incentive to
thrift and provldent care. He says:
"The establishment of postal savings
system would tend inevitably to the culti-
vation of thrift in a large class of people.
Through its instrumentality, those who
have been improvident in little things and
who have not learned from experience that
money makes money, will be educated
slowly but surely to save a surplus over
and above their living expenses, to the end
that fund may be created which will pro-
vide for them when sickness or old age
oyertakes them. When they realize that
their savings may be SO utilized under the
direction and care of their Government that
even small amounts will earn money for
them, it is but reasonable to suppose that
they will be melted to greater exercise of
thrift and industry. They would soon
posting with the Government their sur
plus earnings, instead of expanding them
wastefully and, therefore, uselessly. If but
small percentage of the money young
person expends unnecessarily, in the many
ways known to all, could be saved and
wisely invested, there would be a compe-
tency at hand when old age comes. The
battle of life would be less difficult to fight
with the knowledge of reserve forces at
hand. The habit of thrift thus formed
would result in providing ample means for
the enjoyment of the real pleasures of life,
while laying in store provision for possible
future disaster and infirmity."
NO EXPERIMENT.
1.-THE proposition off postal savings sys-
tenn is not new. 1t has been repeatedly
urged upon Congress by a number of my
predecessors during the last quarter of GEN.
tury but for some reason Congress has failed
to provide the necessary authority for the
introduction of the system. Using the post
Office for the collection, employment, and
augmentation of the small savings of the
people is no longer an experiment. 1t is an
accomplished fact in nearly every country
in Europe, in the British dependencies of
both hemispheres, and even in Hawaii. In
Great Britain 100000 depositors have up
ward of $3.50, 900, 900 in savings accumulated |
during thirty-five years; and in ten years
fewer than 10000 Hawaiian depositors
saved nearly $1,000,00o. Canada, whose
saving banks in 1867 held less than $3, ,500,-
900 as the aceamulations.of century, in
augurated system of postal sayings depos-
itories in 1868, and in twenty years the de-
posits exceeded $22, 100000. These vast ac-
cumulations have been made with the least
possible loss to the Governments, which
guarantee their repayment, and with a
minimum of cost to the millions of deposit
tors. At the erd of 1895, Great Britain, af-
ter paying interest at the rate of q per
cent and covering all losses incurred, held
S3, ,5O0,0 900 in undivided dividends"
The strongest argument against the
establishment of the postal savings
banksis that the government would
accumulate large fund upon which it
must pay interest and for which L. will
have no use. Mr.. Gary says stop pay
ing rent from 5 to 10 per cent. on
the value of buildings to the amount of
two millions per annum and let the
uovornponDf 0u,,, oopn