Omaha daily bee., 1898-07-28

ployment to the brightest and best minds
among building association men. 1t will
certainly be to our own advantage to be-
come familiar with the experience OF CO.
operative societies in other lines of activity.
and with the experience of other credit in
stitutions and, more particularly, with the
experience OF other forms OF mortgage
banks; and to study the deductions OF the
soundest thinkers, who have made these
institutions the special objects Of their in
vestigations. Thorough familiarity with
these matters should certainly enable us to
make our own institutions more useful; and
/ think we may say, without undue self-as-
%sertlon, that our own experience and our
own deductions may be made useful to those
engaged in managing and legislating for
other cooperative and other credit insti-
tutions.
Postal Savings Banks.
The discussion of the postal savings banks
was called and the interest in the question
was shown by the delegates Immediately
crowding to the front the better to hear the
arguments made.
Julius Stern of Chicago here read a paper
on Postal Savings Banks and Their Rela-
lions to Building Associations" in which
he advocated the establishment of the pos
tai savings bank. He reviewed the history
of savings banks in this country from the
formation of the government to the pres
SaS N'hhSt eh' thSh biadC al VAhauotlNt lC-
view Of the operation of postal savings
banks in European countries. Taking up
his argument then he said:
The inadequacy of state laws in some Of
the states, the impossibility of procuring
uniformity in the laws of the various states
and OF that coordination which would per-
NIT Of depositing moneys in one savings
bank and Withdrawing them in any other
at Will, are certainly very strong points in
favor of a central system under the control
OF the general government, affording the
utmost facility for deposits, transfers and
Withdrawals.
Another and most powerful argument in
favor of the postoffice savings banks is their
absolute security, as the whole strength of
the government is back of them.
with the experience to be gathered from
forty years Of operation in other countries,
disclosing the strength and the weakness of
the system, 1t would appear to be a matter
of comparative ease to i%naugurate in con-
nection with the elaborate Postofice depart
ment of the United States q savings bank
bureau that should prove n benefit to the
people separately as individuals and to the
people collectively as a government, for in
this country, of all countries in the world, it
must be admitted Tor the boast of more
than a century Of national life is a delu-
sion) that the people are the government.
If this postulate be granted then the OBJ
lection raised under the cry of ''paternal-
1900 $500 ~ eh'Na ~ oSoi uo
for our government being administered by
men who are the choice of no favored class,
but of all the people, is in theory at least
the broadest exemplar Of 'fraternalism."
In this country, with it's vast natural re-
sources still awaiting development, it's grow
ing cities and internal improvements still in
their infancy, the moneys gathered in the
postofice savings banks all over the land
might under competent supervision be
readily invested in part in local and munich
mi nnrnupnpnfc of Ilp1nphfnH Cnfatu nynr
the whole territory whence they are gath
cred and thus avoid all disturbance Of the
money market in any quarter.
II it is u good thing for the people of Q
country to become the creditors of theii
country by owning its bonded Indebtedness
in sums of 500 to $500 each, as is contendet
by the advocates of our popular government
loan, why is 1t not equally good, as an in
ducement to thrift, patriotism, to civic
pride, to be creditors of their country to the
extent of a deposit in its saving banks tc
the extent Of 81 or $40 IL that measures their
ability?
Let the people be brought nearer to the
sense that their government is in all things
the instrument created by them and existing
by their fiat and for their service alone;
that 1t is the outcome of their joint efforts
and the consensus of their individual con.
tributions, and they will more thoroughly
do their duty in supervising 1t and insisting
that those whom they elect to do their bid.
oahe ohaiA w IL we'll. ~ hUSu "
no fear Of paternalism and the people, be,
cause of a closer individual pecuniary in
terest, may be trusted to see to it that thu
laws are SO framed that the small, scattered
irregularly deposited, and otherwise Otter
wasted, sums which they may deposit IL
the postal savings banks in all portions O
the land are so invested by the government
for constructive purposes as to prevent hurt
full concentration and to foster useful pub
lie works everywhere and yet have the mos
| narfant warranty Of caoliritv for tho inytoSf
ment.
:, Opposition to the PInn.
Mr.. Stern received hearty applause at tn,
conclusion Of his paper, and was followed
Immediately by Judge Seymour Dexter o
Elmira, N. Y, who opposed the banks.
synopsis of his argument follows:
The discussion of this question arises b.
reason of the recommendations of the post
master general of the United States tina
the national government should establish
postal savings system, and the introductio
into congress of a bill to carry out his rec
concentrations.
The importance of the subject demand
careful and considerate examination
yield to no one in my appreciation of tn
; Importance in stimulating habits of saving
: and thrift among our people, in safeguard
ing our political institutions, and the mora
development of our western civilization, an
years ago felt myself in sympathy with tn
Y lued u u hdtioudi pootui pyolSlu, Dut a
i, present my convictions are clear and fri
, against it.
l The most important field of labor for a
7 interested in the welfare OF our people an
/ the future of our political institutions, an
interested in the important matter of stimu
Z lating savings and thrift among the masseI
, and especially the Oncoming generation,
the securing of wise legislation in the state
where such laws are not found at presen
: touching the formation of savings bank
s and building and loan associations, an
t their supervision. The people of the countr
as a whole have not, in legislation and fos
ering care, appreciated the Importance
the local building and loan association. II
most important and beneficial savings II
Il s~titution yet developed In our land. The:
u associations, during the last eight year
r have suffered In a degree because of Ia
laws touching their formation and supel
r vision; the laws being such that they pc
mitted the formation of associations bearir
the same name, but wholly different
. character, and through which losses ha'
u been sustained In many parts Of our countr
d am opposed to any United States post
savings system because 1t is not in harmon
e with the theory and principles upon whiC
our institutions are founded; the domain
our government should be confined to guar,
ing, supervising, and educating its citiZel
in the possession and handling of their ov
y property, rather than to become their ell
todian and investor; to make the COVER
ment the custodian and investor of Il