Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-12-18
WILLIAM T. HAINES
November SO. 1897.

November 80. 1881.
Hon. f. e. Timberlakc. State Bank Ex-
aminer. Augusta. Me.
Dear Sir: | have the honor to acknoWi-
edge receipt of your esteemed favor of
November oath. in which you ask ny
views in regard to the recommend ttion
of the postmaster general that Congress
enact a law establishing system ii POS
tal savings banks. etc.
In his recommendation the postmaster
general anticipates the objections that
would naturally be urged against me
measure. and however forcibly opposition
to the scheme. may be expressed. its
effect is somewhat modified by giving the
friends of the measure the opportunity
of claiming that such objections have al
ready been discussed and exploded.
The immense territory OF the ni'eG
States. largely unoccupied and spar5ely
settled with its variety OF cllmate. KS
latent wealth of agricultural and rnineri!
resources. its navigable rivers. it's unlim-
tied and unbroken acres of timber. Its
limitless water powers its magnificent
seacoast. demand a general distribution
of invested capital that the development
of production. manufacturing and trans
i)ortation shall be made to furnish en-
ployment for skilled and unskilled labor
throughout the length and breadth OF our
land.
The American talent that is capable of
conducting these industrial enterprises 50
successfully that the masses acquire
surplus earnings to invest. is also capable
savings with wisdom and prudence.
There are two kinds of money--commef-
cial money and Investment money. lhe
former constitutes the working cap;tal az
business 1t flows in and out of national
banks and supplies the current demands
of traffic.
Investment money is the Accumulated
profits or savings. representing thc lie'
surplus above operating and living eN-
pcnses. of working men and women.
large portion of the investment
money of New England is the accumu-
lated savings bank acts as Il trustee re-
ceiving these savings in small sums. ana
investing them in well-Secured loans 10
corporations ard individuals ENGAGED IN
establishing the permanent plant loi
some local enterprise which furnishes
employment to those whose savings
have been thus accumulated. Inc local
savings banks are the great conserNatofS
OF investment funds
The .perman ent capital of the great
railroads of the country is largely repre-
scented by mortgage bonds owned Ny
savings banks. The money. to the aNteat
OF a safe loan upon the property. LOT tls
construction of mills and factories winch
have built up our manufacturing toWnS,
has been largely supplied by the local
savings institutions. PUBIC water We! NJ:
sewers. parks. pubic Dulldlhss "ii''
various other public improvements nave
been paid for from the small individual
savings accumulated by our savings IN
stitutions.
MSch3nICS. clerks ana peolie GENE '''
OF limited income become owners Oh tneH
homes by paying in small instruments the
money borrowed of savings banks on :.
mortgage executed when the house WAS
built or purchased.
Our villages and cities increase IN popu-
lation and taxable property for the fea
son that local savings banks largely sup
ply the money for safe and leSitiinats
business enterprises and permanent lti-
provements.
To deprive borrowers of available tunds
by restricting the investment OF the peo-
pies savings through one gigantic me .
lum into United States bones Is 10 oiS
courage enterprise, to hinder opportulHt!
for the employment of labor and 70 pr
vent community from pooling IFS Iunus
IN an Investment for promoting ana e.
tablishing some industry as Il OASIS 10.
permanent growth and prosperity OF thas
city or town.
Our present system of local savings
banks. under the management OF noaru'
or directors selected from the most coii-
servatiye men in that particular locali.s
seems to- me more conducive OF American
progressive prosperity than the plan OF I
centraliZing the accumulated savings IL
people from every part of the UnIteu
states into the custody of department.
or government. necessarily increasing tie
army of subordinate officials WhcSe teti-