The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-10
ARGUMENT IN ITS SUPPORT
PRESENTED BY WILLIS L. WILL
JAMS, WHOSE VIEWS ARE
QUITE OPTIMISTIC.
GEORGE c. COCHRAN OPPOSES.
minneapolis Man Does Not Consider
the Time Ripe Nor the Plan
Feasible.

PctI1OI SOll1SlSACS IlSlQ I1lC oo-
spices Of the associated charities.
The attendance was rather slender,
but those who were present listened to
the reading of two interesting papers
one advocating the postal bank sys-
tenn, and the other opposed to it-and
then fell to a general discussion of the
matter.
The opening paper was read by Willis
L. Williams, and the substance Of 1t is
as follows:
The question whether the United States
shall establish q system of postal savings
banks is one that congress will, no doubt,
be called on to decide at this session That
the great masses of the people will be in
favor Of the project, once they get an intelli-
gent idea Of the system, there Is little doubt.
1t has the guaranty Of honesty in the con-
duct of its affairs and has the greater guar
anty Of the mighty nation to back 1t UP.
1t occurs to me that the establishment OF
the system, under the projection Of the Stars
and Stripes, will do much toward ameltorat1ng
the condition Of the unfortunates that this
society is laboring so earnestly to improve.
1t will be essentially the poor mans bank
Thrift begets thrift. A dollar saved IS a
dollar earned. The same thrift that induces
the saving cautions the person against trust
ing the slowly gathered dollars in a private
savings bank or in a commercial bank. There
is ever present the not-to-be-belittled fear
that "some day the bank will go up and then
I will lose all my savings" This Is a condi-
ton Of affairs that l apprehend the postal
savings bank will change completely and for
the better Backed by government as sta
BILE as ours, that guarantees against loss
through a rascally cashier or other off1cer
who may run away with the cash. such an
institution will inspire confidence in all. From
jars and stockings the gathered boards Will
be poured in a shining stream OF wealth
into the Golfers Of the postal savings bank
A return of all this money to circulation
cannot but have an eficacious effect on all
lines of business. 1t will encourage the es-
tablishment of more manufactures. more
business houses, and, in consequence, Will
furnish employment to more or the poor SO
greatly in need of honest employment to drag
them out of the slough Of dependency, the
vale Of hopeless poverty; and they will be-
come self-reliant, self-supporting men and
women again.
The first postal savings bank was estab-
lished in England in 1861. William Glad
stone, then chancellor Of the exchequer or
Great Britain. championed the movement for
the establishment Of the system. Lewins IN
his History Of Savings Banks" says OF the
postal savings banks of Great Britain
Next, perhaps, to the repeal Of the corn
law this is the greatest boon ever conferred
on the working classes Of the country; and
next to the scheme of penny postage itself
the scheme of postofhce banks is the great
est and most important work ever undertaken
by the government for the benefit Of the ma
ton. The success Of the postofhce
banks has been of the most complete k'no.
The general plan of postal savings banks
is enc of great simplicity. The deposits are
made with any postoffice in the country, ana
the accounts may be settled and the deposits
withdrawn at any postofice. In most or the
plans that have been proposed In this coun-
try per. cent has been named as the amount
of interest to be paid. although 21a and 3
have been suggested. There has been wide
difference of opinion as to how the funos
should be invested some advocates of the
system insisting that nothing but government
bonds are sufficiently secure and others that
ordinary real estate security is sufficient.
1t is probable that a happy medium can be
found in the investments that are constantly
being offered in state, county, municipal and
school district bonds. Under proper condi-
tons and with suitable safeguards this class
of securities probably offers as safe an in
vestment as bonds of the government itself,
and the proposed restriction to government
bonds can hardly be feasible in a country
like this, where there is no expectation OF
large permanent debt.
strong supporter of the postal savings
bank is Postmaster General Gary. In his
last report made public Nov. IA, PoStmaS-
ter General Gary cites the many advantages
to be obtained by the adoption of the sys-
tenn in the United States, and urges its adop-
ton Among other arguments in favor OF the
system he says:
more than a thousand postal savings &C
counts in European offices are held by
minors. and more than two-thirds by per-
sons of the most humble calling. 1t is es-
sentially the bank of this class. Postal saw
ings would not conflict with private savings
banks, but would encourage savings rather
than accumulation. The conversion of money
order offices into savings repositories would
soon afford indefinitely more facility for re-
ceiving Understanding deposits than the
Understanding banks now do"
The most aggressive opponents are among
the divers institutions engaged in somewhat
similar enterprises, although associations OF
the larger cities recognize in 1t valuable
feeder to the financial current of the country.
Security, and not the rate OF interest is the
primary and essential condition of such a
system, and bonds of state, county and
municipalities and real estate, 1urnlSn an
mi fund -
Here are some of the advantages of the
postal savings bank system, as it Is in vogue
FirstMAbsolute security from loss
Second-Convenience Of making deposits; at
lowing withdrawal without sixty or ninety
days notice.
Third~Repayment not affected by change
of residence
Fourth-safety against PRESERVATION and
Fifth-Prevention of poverty or temporary
want by developing habits of thrift and saw
ing.
a means of safe and ready deposit
Seventh-Discourages reckless and specula-
tive expenditures.
carbohydrates the young and unframed
to a knowledge of the use and value OF money
ard helps to instil In their minds business
habits.
people personally. The following advantages
are to the government and country:
First-To the government: Prevents Dor
rowing from abroad.
Second-Places the money whether regard
ed as a loan or otherwise) under the control
of domestic legislation.
The advantages to the country at large
are:
First-The people receive the profits in
interest on their savings when they are used
as a public investment
Second-The increased wealth. arising from
deposits and accumulated interest, is kept
within the country itself and not sent abroad
to increase the wealth of a rival country.
IL idfri Intff ION Of
ments money thus invested. can promptly
reach points needing 1t from sudden local
causes.
Fourth-The laboring people taught
to feel a direct personal interest in the
stability of the country.
George C. Cochran, of Minneapolis,
read the second paper. He did not ia
vor postal savings banks; in fact, he
believed the government had not the
right to establish and maintain them
There were, he said, three distinctly
defined views as to the nature and
functions of governments: first, those
who desire the minimum Of govern
ment interference; second. those who
consent that the government shall I'M
dertake to do for the public that which
it can accomplish in more satisfac-
tory way than private effort can,
and, third, those who would give the
government unlimited control of tele
graph, telephone transportation, and
even industrial activities, and hand
over the country to the tender mercies
of the idealists of the socialistic propa-
ganda The postal system, as in vogue
in some of the foreign countries, was,
he thought, rather pronounced step
in the direction of these socialistic ten
denotes He denied that there was a
popular demand through this country
for their establishment in spite Of
what the postmaster general has said.