Evening star., 1898-12-09
Post Office Savings Eauks.


of their fun privileges and rcS9onsibi itics
of citizenship.
Post Office Savings Banks.
My bill provides for the establishment
of postal savings banks at the various post
offices of the country, the locations TO he
selected in the discretion OF the Postmaster
| General The Post Office Department Will
establish these repositories to be conducted
under is supervision. ana they will be open
to every man. woman and child for his
her savings. provided single deposit
shall exceed the sum Of $500 and ;hat no
person shall at any time have more than
Sl,Hlt banked there.
Tine bill is designed to reach certain
class OF our pcnnIe who are entirely ignor-
ant Of banking laws and the methots OF
our banking Institutions ana who a"e seem
lnSly &frald TO trust their money to the
bankers. 1t is entirely a poor mans
scheme. People who are afraid of the
banks are certainly not fearful of she re-
sponsibility Of the federal government. and
they are willing, no doubt To trust the
Nernment with their money when they
receive proper assurances that their funds
VIII be properly taken care of. There are
thousands of people in the country today
who are hoarding small sums Of money on
account of the fact that they are fearful
Of losing it IL they allow our financiers to
handle il. The panic Of 1Si3. when SO
many savings ana national banks became
insolvent. was largely instrumental in
unbounded faith in the stability Of the
government and vould not hesitate to de-
post their money with it II opportunity is
offered.
The Matter of Interest
The bill proposes that on all deposits in
terest shall he paid Il; rate not to exceed
per cent This matter, however. is leCt 80
thc discretion Of tn" government and If il
deems best no5 Ia pay any interest ii Will b.
50 stipulated before money is deposited. The
money which is received by the postal saw
Ings banks will he invested in United States.
municipal of Siat". bonds and securities. A.
= result of this policy there would De such a
large jrmaud from The government for mu-
niCipal and state securities lhaI il womiG
better their standing IL their respective
communities and IN" local authorities all
over tn country Gcl!t be able TO sell them
AT much lower prices than they are being
disposed If at present. This woGId rrduuud
10 the beTe1il uf properly holders who are
really the security for his kind Of paper.
Examination Of Proposed Investments
Il have heard # said that this sort Of
investment Of th" money proposed 10 be
raised by lhe savings banks would be wild
ca. invt -,menI in many cases. Now in
orIsr u nrovida agsju~, any such mistakes
III" hiIl appoints 4 board. consisting Of the
Secrt tory Of jhe Treasury. The Postmaster
General ana thr attorney General who
shall pass upon "ll securities offered for
investment and determine which shall be-
pure haS"a md which shall b, rejected
Now, ii these thrr,. officers ara n1t an s!i;ici
To judE" the hng~risi stability of an invest
meGt. would nk" tn know who i<2 Invest
m"llts under their direction would be en-
nrciI Snfe. BESIDES. there are many muMic-
iPai securities which are just as stable AMI
safe as United S;at'S bonds Take Chicago
water bonds. for instance. which pay in
tcrcS; at the rate q: > per cent | would
jus. - soon inves. my money in this stock
~ in government securities. IL is absolute
II sound. in Chiy.ies" We also have special
assessment certificates paying u per cent
interest. which Also make an '-sc-'l,Yt m
Nesl'n"ft. The onn,ry fun of Srch Iape.
and there would hr IL" difficulty in .ind.nS
local investments for money deposited in
the postal banks.
The bin contemnlatCs the establishment
of Banks at the money order pest offices of
the country first There are about % GoJ of
these and many of them are in towns
where there are no l." uks of any character
These post offices are accustomed To hand
ling money and could inauGurate the sys-
TEN without any trouble. / calculate that
il would take 1t least three years to get
the scheme in full working order, but after
once being established it would prove to
he the greatest boon to our people ever in
aupuratcd.
Effect ou Private Savings Banks.
II have heard ii contended that the es-
tahlishment of these banks would injurc
the other savings banks of the country.
but this is mistaken idea. The postal
savings banks SEEK to reach a class of
people who would not at first deposit their
money with private corporations under any
circumst ances. The idea is to teach them
something about finance and the trust
worthincsS nt our tinanciers SO that when
they have a"ctrlulated Sl,un, the maxi
mum sum allowed to remain in the postal
banks, they will realize that new and more
profitable fields just as safe as the govern
ments AZ" offered for the Investment of
their capital. Then they will withdraw
their money from our banks and deposit il
with the outside savings national banks.
In that waE millions of currency Will be
brought into circulation which now lies
dormant.
Effect on the Citizen.
My experience has been that when q
man begins to save his money he begins
simultaneously to look around and take a
ATTORNEYS.