The herald., 1897-09-19
POSTAL SAVINGS BANKS
Every Country Has Them Except Our
Own

Every Country Has Them Except ou1
During the last few years all classes ol
citizens-the poor. the well-to-do, ever
the rich-have been brought to recog.
nize the necessity for the establishment
of an absolutely secure depository fol
small savings. Thousands Of thrifty
persons whose earning power is re-
stricted have experienced the bitterness
coming from loss of their hard learned
savings through the failure of savings
banks, building and loan associations
and other institutions which were sup
posed to give safety to the sums in
trusted to them. The suffering and de-
spair which have resulted from such
failures have been felt in every commun-
ity. Hopelessness and doubt have beer
sown broadcast by these calamities.
The harvest Of improvidence which is
growing up will render this nation poor
indeed unless that growth can be
checked.
During the last ten months the Chi
cago Record has been earnestly advo-
eating the establishment by the national
government of postal savings banks.
The people very generally recognize the
need of them. Organized labor Is urg-
ing the reform with all it's strength.
Many eminent bankers advocate it as a
remedy for the abundant unthrift and
startling lack of confidence in existing
banking institutions which now are
found among the people. Postmaster
General Gary, like a number of his pre-
ecessors-notably Postmaster General
Creswell and Postmaster-G General Wan
amaker-is sincere and earnest advo-
cate of postal savings banks. People
who consider the subject speedily be-
come almost without exception active
supporters of the reform. The agita-
tion is now widespread and ie growing
rapidly every day.
Objections to postal savings banks are
based mainly on two mistaken ideas.
First, that they are paternalistic; Sec
ond, that they cannot be eeta blished by
the United tates because, unlike the ma
tional debts of the many enlightened
and powerful nations which have postal
savings banks in successful operation,
the national debt Of this country is
neither large nor permanent, and there
fore will not serve as basis for the in
vestment of deposited funds. The first
objection may be answered by pointing
to the poetoffice system itself, and par
to the money order branch Of
that system. These are necessary con-
veniences for the people, and yet they
are quite as paternalistic as would be a
system of postal savings banks. To the
second objection may be interposed q
provision Of the postal savings bank bill
which the Record has prepared with the
advice and assistance of some of the
best authorities on postal savings banks
in this country and Canada. The bill
provides for investing the funds arising
from the operation of the system in gov
ernment securities. But as the national
debt is not large nor permanent in it's
nature, provision has been made for in
vestment in State and municipal securi-
ties. But national securities will pro-
baby answer for some years; the sys-
tenn will grow slowly and it is estimated
that deposits will not exceed $3.50, 900 900
n the first eight or nine years of it's op-
sration.
The rate of interest is fixed in the pro-
posed bill at 2 per cent. If the postal |
savings bank shall invest it's funds in |
government bonds, paying 21a per cent |
interest or thereabouts on investments |
the difference between that and the
per cent paid depositors ought to be am
pie to meet all expenses of maintain
ing the system after it Is once fairly
started.
All the leading nations of the world. |
With the exception of two or three, have
postal savings banks says the Record,
and all have better facilities for the ac-
Of savings depositors than
has the United States. While savings
deposits in this country have shown a
increase during the last quarter
of a century, the savings deposits and
humber of Gepositors in countries hav-
ing postal savings banks have grown by
caps and bounds. In the United States
50 per cent of the savings banks and
savings deposits are in the New England
States and New York Throughout the
West and South, except in the great Gen.
.ers Of population, it is impossible for
private enterprise to furnish savings
facilities sufficient to meet the needs of
the people. Besides, the depositor of
small means frequently Is not able to
pick out from private banks those that
are safe, and consequently will trust
lone, whereas all could have confidence
IN an institution controlled by the ma
-ional government
Postal savings banks would contribute
to the wealth and happiness
If the people and to the stability of the
government. Congress should not de-
ay longer in establishing them.
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