The enterprise. [volume] (Wellington, Ohio) 188?-1899, 1898-02-09

money lenulng snOpS thrOughouC Jne
country; that it will never discount
notes and that it will never loan mon
ey on bond and mortgages. The risks
from dishonesty and bad judgement
accompanying these forms of invest
ments are too great.
One of the most unaccountable facts
connected with the present discussion
is that the agricultural press, which is
supposed to represent the interest of
the farmer, is making frantic plea for
the establishment of the postal bank
system. A California paper devoted
to the fruit culture, asks its readers
what they are doing to advance the
cause of postal savings banks, and goes
on to say that the daily papers with
their entangling alliances. will do
nothing. The utter absurdity of such
course will become apparent when
we remember that of all classes the
farmer is the one that complains loud
est of the lack of local capital, especi-
ally in the south and west. National
banks by law are prevented from max
ing loans on such security as the farm
ers offer, and most of the state and
private banks prefer loan their
money to the great eastern banks,
rather than to the farmer. This limits
the farmer to two sources from which
he can borrow money-the savings
banks, and his neighbor who has laid
aside small sum, and is willing to
loan it taking mortgage security. The
postal savings bank, if it should prove
to be all that its friends claim for it.,
would lesson the availability to the
farmer of these two sources. In dis
tricts where savings banks are already
in operation, postal banks would stop
their further growth, and prevent
their establishment in districts which
are as yet, without them; and the
farmer attracted Ey the appearance of
greater security would place his saw
ings with the government. Postal
Savings banks, instead of leaving the
funds to he invested in the rural dis
trcts from whence they eminated,
would remove them to the government
vaults, for the purchase of govern
ment bonds: or should the govern
ment be so unwise as to buy municipal
securities, to the cities and large
towns. The late DR.. Stephan, acknowl-
edged to have been one of the ablest
postal officials in the world, rejected
the proposal for postal savings banks
in Germany, for the reason they would
remove money from the country dis
tricts and concentrate it in Berlin
The present savings banks are essent-
tally home institutions, receiving the
small deposits of the laborer and me-
chanic, and loaning it to others for the
development of local resources, which
works for the good of the whole COM
munity, The agricultural press would
much better deserve the hearty sup
port of the farmers, if, instead of urg.
ing the establishment of this monopo.
listic system, would advocate the pass
age of laws permitting the incorpora
tion uf national banks small capital
and state banks of issue.
1t is said that postal savings will
teach habits of thrift and economy
but it seems to me that we should con
slider long and seriously before favor
ing the Inauguration of such gigan
tic kindergarten, which would likel!
fail to accomplish the purpose of it
establishment. The habits of people
are SO deeply rooted, that an institu
tion OF their own making would in nj
wise effect them. The habits Of ma
tion are changed only by successive
generations Of hard experience.
The patriotism of the citizen will b.
strengthened, if he is creditor Of tn
Government. Has it come to such
pass that we must bolster up the patri
otism of the American citizen by ap
pealing to his pocket rather than t
his heart.
Postmaster Gary, in his annual re
port, says: "Some affect to see tn
specter of centralization." We Gel
tainly do see the specter of centralizt
ton, but more than that, we see tn
specter of socialism. The postal SAY
: ings bank is fundamentally socia
4 istic institution; and the same argl
= ments which are advanced for its e
tablishment, can be applied wit
J equal, if not more force, to the sta
8 ownership of the railway, telegrap
;. anu IelepnoHc'
!. The savings banks of this count
d stand as a monument to the bene
n' cient motives of some of our most ei
: inent men. The mutual savings ban
J. which is probably the ideal form
savings banks, now number 677, Al
i hold within their custody deposits a
b gregating nearly two billion of dollar
10 This vast fund has been intrusted
j. the keeping of comparatively Il
& men, and the high degree of homes
~ and singleness OF purpose with viii
+ this trust has been administered, 0
~ mits of no comparison in any count