Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-09-27
BANKS FOR THE POOR
To Encourage Saving Habit Among
the Masses.
ADJUNCT OF THE POSTAL SYSTEM
History of the Movement Through
out the World.
GOOD RESULTS ARE SHOWN

Ninety years aso philanthropists in Eng
land discussed the advisabiIty of having
banks establish ed ~ the government in
order to encourage a saving habit among
the working classes ard TO give absolute
security for the safe-keeping OF the earn
ings laid aside for a rainy day. To-day
there are postal savings banks in Sweden,
Great Britain. Austria, Belgium, Finland.
Hawaii, Hungary, Tasmania Japan, the
Netherlands, France. Russia and Italy and
in all the British colonies 1t is esti-
mated that there are about 1SWo,0o0 de-
pOstors in postal savings hanks through
out the world, with aggregate deposits of
81 :j4;;. 81. 2O2.
Ever since 49,. there have been attempts
to establish a similar system in this coun-
try. Nearly every Postmaster General
s.nc" that time has recommended the sys-
TEN to Congress. Postmaster General Gary
has lee Jared that he will do all in his pow
or to bring about favorable legislation on
this subject, and IL Is well known that a
rurber of senators and I. presentatlyes are
heartily in favor of the plan.
Objections to the System.
The trouble in the past has been that in
New England, where such a system would
be in the greatest demand. there is very
Plentiful supply of savings banks. while
i'll the south III. horror with which the old
school democracy has viewed any tendency
toward pat-rnalism, has caused the system
to he regarded with suspicion. Directors
OF savings banks have had rather jealous
thoughts toward the project of having the
government compete with them for the
privilege of taking care of the savings of
the people. but as they have come to I'M
GerStand the project better they have felt
less opposition toward it. Postmaster Gen
eral Gary has been the director in one of
tx largest savings banks in baltimore for
twenty years, yet he heartily indorses the
project. The fact is the postal savings
bank system, according to the plan upon
which it is generally believed it Will be
based. cannot be 2 rival Of the private
savings bank. 1t is not contemplated that
q rate of interest much, If any. in excess
of per cent will be given on deposits,
and amounts that can be carried by sin
gle deposition will probably be limited. The
fact is the postal savings bank will be
merely a primary department in which
people of small means will be taught the
knack of saving money, and when little
Sums have been accumulated they will
probably be withdrawn Tor more profit
able investment.
Private Hanks Not Injured.
When the postal savings banks We're es-
tablished in Great Britain the private banks
feared they would ruin their business, but
increased their capital s1Ooo0,0oo. which
was regarded as a complete answer TO OBJ
jections from that quarter. Now there are
ever loose post Office banks in Great
Britain. the total deposits being nearly
$56n0o0.1oo. In England and Wales the
number of accounts il about one 70 every
sven of population. and throughout the
united kingdom one 10 every eight inhab-
itants. with an average balance TO each de-
position of about go
The tendency of savings banks to encour-
age habits of thrift is well shown by the
eXpvrien nee in Canada. In 1861 there Were
regularly organized savings banks in two OF
the provinces of Canada with deposits
amounting TO s.. iS9 600. Today there is an
aggregate amount to the credit of de-
posters in Canadian postal banks of S2S,-
G;2.923. SAVINGS banks were established in
France in 1851, and after seven years of
their existence the number of open ac-
counts Was 1.129.9SI and the amount to the
credit OF depositOrs $J1 I9O,20 Today the
amount is $1.l. 611 l9J.
The aggregate amount of deposits held in
all the sa;ings banks OF the world is esti-
mated as follows: Great Britain, S4s3.34i, =
$40; Russia, s2s,; 1851; France. S1J1 .G9I-
go: Belgium. sf;.6.E;2II: Italy. sS9. 81 i6I ::
Canada. S.S.:E;2..2.'. Holland, S1S..J1 80:
India $24:;11 orr: New South Wales $40 -
JjS. :ist: New Zealand. S1s?57 So; Queens
land. Sl1 IL ,:34; Victoria. SIS, 223 122: Japan
sIj.p,2.O-22: Straits Settlements, SIS. 40:
bahamas. 81 s61: British Guiana. $685. 1893:
Ceyion. so,0;s5,sJt; Cape of Good Hope. 3d.
al. IS: falkland Islands, SlG1.is2; Finland,
$944:,.ni1: Hawaii. SEi,..EG: Hungary. So
'sr,.2o6: Sweden. s11.GT.1.:,; Tasmania,
500. So; Western Australia, $751; ~. Total,
81, ;4.;,S2-,.2U
Encourage saving Everywhere.
The story OF the establishment of savings
banks is the same in all countries in which
they have been made part of the postal
system Everywhere they have encouraged
d saving habit among the people. and it
is believed by those who have studied the
question that at least s5.o1,0o0 would be
deposited in postal savings banks in this
country in few years. Ii is thought that
much of this money is now resting in old
stockings, to the injury of the country at
large. because OF the res friction of the cur
-ency IL causes.
The disposition by the United States of
the large sum Of money that would be
placed in its hands by depositors in the
postal savings banks has always been
looked upon as serious obstacle in the
way OF the establishment OF such banks
IN European countries. where il is the
policy of Jh+ nation 10 carry large stand
ing debt, because il is supposed to give sta
bility to the government. ii is easy TO dis
pose Of the savings bank funds by invest
ing them in government bonds. But there
Is no disposition in this country on the part
OF the people at large TO maintain a stand
ing debt, and other means for investment
must be sought. as the motley could not
with propriCty be kept lying idle in the
treasury vaults. because its withdrawal
from circulation would act injuriously on
the country
Mr.. Wanmmakcr's Plan.
Postmaster General wanamaker PROPOSED
that the money be loaned by the govern
r.ent TO national banks at rates of interest
10 be determined by the Secretary of the
Treasury He also suggested that deposits
OF postal savings funds be declared by spe-
cial enactment preferred claims against the
national banks holding them. In that way
Mr.. Wanamaker saw way to guarantee
safety, secure Il moderate rate of interest
and 10 keep the money In circulation con-
stantly. He also suggested that the money
could he invested in public buildings
throughout the country. Senator Mason al