St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1898-01-07

twenty-six million dollars in small
accounts.
Gen. Gary says that the United
States is behind other countries in
this respect, most civilized countries
having postal savings systems, thus
giving an opportunity for the people
OF the poorer and medium classes to
safely invest their hard-earned saw
ings. Investigation shows that this
country is sadly in need of such an
institution. Private savings banks
have left the people of many large
communities, and, in some cases,
almost entire states, without facili-
ties whereby they may invest their
cash surplus. The sole convenience,
he says, which these people have en-
joyed and are using today is the
facility for exchange afforded by the
money-order system of the post office
department. AS an evidence Of this
during the current year more than
So million transactions were made
in the 21,000 money.order Offices,
and nearly 200 million dollars was
received and paid out. Millions OF
money orders were bought to be used
by the buyers as drafts and in place
of bank checks.
The greatest objection, probably,
which has been made to the estab.
lishment of the postal banks and the
receipt of deposits by the government
is as to the investment which the
government must adopt in order to
pay suitable interest on the depos
it's. 1t is proposed to pay interest
at the rate of 2 per cent or 21a per
cent, and many people assume that
the government could not find proper
investment for the money deposited
which would enable it to pay that
rate of interest. Gen. Gary on the
other hand, believes that there will
be no difficulty whatever in invest
ing the deposits in first-class securi-
ties which would not only pay the
interest proposed, but at the same
time enable the government to re-
duce it's expenses in other directions.
The interest. bearing debt Of the
United States is now about $685.,
100000, and all of it bears 31a per
cent or more. If the deposits were
invested in these securities, it is evil
dent that the government could pay
the difference between the 2 or 21a
per cent and the 31a per cent, or at
least that portion OF it not necessary
in paying the expenses of the system.
The postmaster general has various
other suggestions in regard to in
vestments.
One OF the best suggestions, how
ever, and one which has impressed
itself upon General Gary, is the
scheme of General Stone, the acting
president of the League of Good
Roads Of America, who proposes that
the government shall invest the de-
posts in county bonds throughout
the various states, the money to be
used in the construction of good
country roads. The proposition
seems a simple and feasible one and
one which will likely meet with
great favor with the farmers after
its provisions are thoroughly under
stood by them. 1t is simply that
the county shall issue bonds and
sell them to the government and pay
the same interest on them to the
government which the government
must pay to the depositors in the
postal banks. This interest would
be more than met by the money
which is annually used in working
on country roads and keeping them
in a passable condition. The great
advantage apparent from this pur.
chase of local bonds is in the fact
that the money would not leave the
community where it was deposited.
Instead of going to large business
centers for investment, as would be
the case in the purchase of all other
securities which have been mentioned,
it would stay directly in the county
and be utilized and paid out to the
people of the county. The benefit
to the county and the country gen
orally from the building of good
roads is hardly to be estimated. In
many sections of the country the
road facilities are so bad during part
of the year that it is impossible to do
any hauling, or if hauling is at
tempted, the farmer makes nothing
more than wages at it, and gets
nothing for the crop which he is