The record-union., 1897-12-12
POSTAL SAVINGS DEPOSITORIES
AND INVESTMENT.

General Roy Stone, Chief of the Bu-
reau of Road Inquiry of the Department
of Agriculture and President of the Ma
tional League for Good Roads, is out
with a novel proposition. Assuming
that public sentiment is rapidly and
surely shaping itself to favor the es-
tablishment of postal savings banks,
and that their adoption will soon be
a part of the national policy, he refers
to the objection raised that there would
be difficulty in investing the funds so
deposited. To this he replies in a let
ter addressed to Postmaster General
Gary under date of November Both,
and suggests a way out of the diff
is conceded to be the chief objection of
moment to the proposed system.
General Stone advises the POST
master General that no better possible
posits than the taking of county bonds
issued for road purposes. General
Stone says:
Such bonds are the very safest of
investments. cince their avails, proper
ly applied to road Improvement, will
vastly increase the value of property
in the county, and the bonds thus
multiply their own security. 1t seems
10 me that the two schemes postal
savings and road building-naturally
go together and support each other
n,7.a Oh. TOO Of aYsyso
ment would be that the money depos-
dted in country districts would come
back into circulation there, forming an
endless chain of benefits. A further
advantage from the road-building point
of view would be that the poor anc
sparsely settled counties would get their
road money at as low a rate Of interest
as those which are rich and populous.
The Government could be further Sc
cured by the States guaranty of the
bonds, by it's own supervision of the
road building, and, if necessary, by
the State comforting upon it the right
TO collect tolls on the roads in case of
default in payment of interest or prin-
cipal.
In a second letter addressed to the
league membership, the Chief Of the
Road Bureau presents the question
anew under date Of December I'd, say
ing that further deliberation and in
quiry have convinced him OF the sound
ness OF the proposition, and that it will
open up the way so long sought by
road improvement advocates upon a
scale commensurate with the vast i'm
portance to the national life Of the
improvement scheme.
It puts aside forever the whole ques-
ton Of national aid, which however
wise 1t might be. could not be secured
except. after long and bitter struggle,
If at all. If the Government adopts
the urgent recommendation of the
savings system, it must find ways for
the safe investment of the funds that
they may earn for the depositors. To
take the money from all over the coun-
try that the small savers put into such
postal banks and transport 1t to money
centers, he holds would be unwise.
The very best use it can make of the
money, then. is to keep it in circula-
tson in the rural districts. How bet
ter can this be done, he asks than to
invest it among the people who make
the deposits by taking bonds for road
building, which may thus be secured
on a large scale without onerous tax
alton. On this point he adds:
The ideal operation would be one
which. while drawing the money out OF
its hiding places or idleness in the rural
districts and making it earn interest
for it's owners, should put it actively
at work in the same districts earning
money to reimburse the Government
and at the same time adding wealth to
the region through public improve
ments The proposed investment in
county bonds issued solely for road i'm
provement, and with the proceeds ex-
pended under sufficient Government su-
pervisioG. would meet these conditions
in the highest degree.
In view of the perfect security Of
fsred, and OF the great public benefits
10 accrue. the Government could vel
afford to incur the small additional ex'
pense of handling these funds and loar
the money at the same rate of interest