The enterprise. [volume] (Wellington, Ohio) 188?-1899, 1898-01-19

A Suggestion to Invest the Deposits in
Country Roads : CO-OperatiOn of Rail-
roads in the Building of Good Roads.
The proposition for the establishment
of postal savings banks in this country
is meeting with a good deal of favor.
1t is said that the postmaster generals
bill will stand a better chance in the
United States Senate than any other OF
the financial measures proposed or
likely to be proposed by the present
administration. Yet, it is predicted
that there will be strong fight on it
when it comes up for action and that
it will meet with manifest and deter
mined opposition. AS it is Republic
can measure it is not hard to determ-
inc where the opposition will develop,
but General Gary thinks the PROPOSE
tion 80 comparatively simple and so
manifestly advantageous to the people
of the country that he has great hopes
of it's enactment into a law. He has
studied all tides of the question and
will doubtless make a strong presenta-
tion of his case when called upon by
Congress to support the plan by facts
and figures. AS an example he will
probably show the excellentTworkings
of the system in Canada, where, with
her five millions of people, there was
on deposit in postal savings bank a
year ago over twenty-six millions of
dollars in small accounts.
General Gary says that the United
States is behind other countries in this
respect, most civilized countries hav-
ing postal savings systems, thus giving
an opportunity for the people OF the
poorer and medium classes to safely
invest their hard learned savings. In
vestigation shows that this country is
sadly in need of such AMI institution.
Private savings banks have left the
people of many large communities,
and in some cases, almost entire States,
with out facilities whereby they may in
vest their cash surplus. The sole con-
venience which these peoplelhave en-
joyed, and are using to-day is the fac
ility for exchange afforded by the
money-order system Of the t-Office
Department. AS an evidence of this,
during the current year more than 81
million transactions were made in the
q 600 money-order offices. and nearly
200 million dollars 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 which has
been made to the establishment of the
postal banks and the receipt of deposits
by the Government is as to the invest
ment which the Government m'st
adopt in order to pay suitable inter-
est on the deposits. 1t is proposed to
pay interest at the rate of per cent
or 21s per cent, and many people as
sumo that the Government could not
find proper investment for the money
deposited which would enable it to pay
that rate of interest. General Gary on
the other hand. believes that there will
be no difficulty whatever in investing
the deposits in first class securities
which would not only pay the interest
proposed, but at the same time enable
the Government to reduce its expense.
in other directions. The interest bear.
ing debt of the United Estates is now
about $685., 100000, and all of il bear'
81 per cent. or more. Ifsthe deposits
were invested in these securities, it i;
evident that the government would
save the difference between the or 2115
per cent. and the 31R per cent, or al
least that portion of it not necessary il
paying the expenses of the system.
One of the best suggestions and one
which has impressed itself upon Gen
eral Gary, is the scheme of General
Stone, the acting president of the
League of good ropds Of America, who
proposes that the government shall in
vest the deposits in county bond,
throughout the various states, the
money to be- used in the construction
of good country roads. The PROPOSE
tion seems simple and feasible ont
and one which will likely meet will
great favor with the farmers after ti
provisions are thoroughly understood
! 1t is simply that the county shall issue
bonds and sell them to the government
and pay the same interest on them t.
the government which the government
must pay to the depositors in the pos
tai banks. This interest would b,
more than met by the money which i
annually used in working on countr,
roads and keeping them in passabl,
condition. The great advantage ap
parent from this purchase OF loca
bonds is in the fact that sathe none,
would not leave the community wher
it was deposited. Instead OF going t.
) large business centres for investment
; as would be the case in the purchas
/ of all other securieties which hav
been mentioned, it would stay directl
in the county and be utilized and phi