The record-union., 1898-02-04
POSTAL SAVINGS AND INVEST
NIL l.

The feeling favorable to a national
postal savings system is rapidly grow
ing. The chief objection now advanced
against the scheme is the fear that
proper investment could not be found
for the funds, and that as result
a vast sum would longest in the hands
of the Government upon which it could
pay no reward to the depositors, and
thus it would become a source IF dam
ger.
General Stone of the Road Inquiry
Bureau of the Agricultural Department
has, however. proposed an investment
that seems feasible, and upon which
We have already commented, namely,
that the gathered funds be loaned to
States. counties, cities and towns
on their bonds for the sole purpose of
good road construction according to
the general plans to be devised by the
Government, to insure non-waste and
misapplication of the money Thus
1T is urged the money will be immediate
~ reinvested and paid out among the
people, doing double service, while the
interest reward would be equaled by
the saving in the cost of traffic move
ment over good road systems
This suggestion has been Endorsed by
a great number of publicists, many of
the letters written by them upon the
subject being now before us in synop-
fical form as issued by the Agricultural
Department. Postmaster General Gary
has expressed himself upon this SUBJ
ject of investment also, and his views
practically accord with those set out In
the bill introduced in the Senate by
MIR Mason, and in the House by Mr..
Iorimer He is warmly in favor of
Investing postal savings in State, city,
town and county bonds after invest
ment in national bonds shall prove in
sufficient. He desires however, that
In all city and town bond investments
the State should stand as security.
In that plan We think he will find
a serious hitch. Only a few, a very
few, States will do this thing. or are
by their constitutions permitted to be-
come guarantors for any one. The plan
OF lending to the States direct how
ever, or for the purpose of distributine
the loans to State political divisions,
presents no such obstacles in cases
where the States desire to borrow. But
many of the States have no idea of
contracting debt, and some are wholly
Independent, and not In need of any
funds from the outside.
The lending to home authorities. ii is
true, has proved very satisfactory and
successful in Europe, but the condi-
lions there are far different from any
prevailing with us. State sovereignty
here interposes an obstacle not known
abroad In France a law now permits
postal savings to be loaned to the COM
munes. which are considered excellent
security. In Belgium a similar system
prevails, and In several other countries
POSTAL loans are now encouraged to
small communities for prosecution of
public works.
But there would appear to be no OBJ
lection whatever to General Stones
plan. In about every State. we be-
lieve. towns incorporated, and cities as
We'll as counties, are free to borrow on
their own motion, and even where leg
islative sanction is required it is sell
dom, if ever, refused. If such loans
We're made, then, on the specifications
as to use required there would be a
dual benefit investment OF the small
savings safely, and great betterment
in the conditions OF the communities
borrowing. by reason of the local dis
bursement Of the funds, and the con-
struction of permanent thoroughfares
that viii lessen cost of transportation
economic in marketing and supplying.
and benefit by beautifying and better
ing the country so as to make rural
residence more desirable.
Chancellor Mclean of the University
OF Nebraska, however. while favoring
the road plan, says that he does SO