People's party paper. [volume] (Atlanta, Ga.) 1891-1898, 1898-01-14
Postal Savings-Banks.


General Gary, according to expecta-
tions, advocates the establishment OF
postal savings banks. The creation of
such institutions has been recommend
ed bya number of Mr.. Gary's predeces.
sors, and finds many supporters in the
newspapers of the country. Yet it is
apparent that, as in the past, strong
opposition exists against the establish
ment of this new branch of postal ser
vice, Opponents of the plan insist that
the success of such Institutions under
other governments is no guaranty OF
success under our government.
Mr.. Gary goes into considerable de-
tail to prove the necessity and FEAST
bility of creating postal savings-banks.
He cites the growth of the money-order
system as striking argument in favor
of providing bank facilities in connec-
ii with the Post-Office Department.
He says
''Private enterprise in this country
has left the people of many old commu-
mites. and in a few cases of almost en-
tire States, without any facilities
whereby they may protect and invest
their hard-earned savings. The sole
convenience which these people have
enjoyed and are using to-day is the
facility for exchange afforded by the
ney-order system of this depart
ment. If additional argument is ne.
cessary for a postal-saving scheme, it
can easily be deduced from the opera
tions of this remarkable system. Dur
ing the current year more than 2,O00,-
900 transactions were made in the 21,-
900 Offices OF this class, and nearly
5000, 900, 600 was received, transmitted,
and paid out Millions of money
orders were bought to be used by the
buyers as drafts, and certified checks
are employed, for safe and convenient
carriage. It must be apparent,
therefore, that as medium of exchange
the banks, numerically, fall far short
of the money order system, and, dis.
tributively, their failure is even more
pronounced. If, by appropriate legis-
lation, these offices could be converted
into saving repositories for the people,
they would soon afford infinitely more
facility for receiving Understanding
deposits than the interest paying banks
do now. The system furnishes the
machinery which. IN its equipment,
methods, economy, and comprehen-
siveness, could be adapted with the
smallest possible friction or increase OF
agents to the duties of a postalsavings
depository"
For the investment o the deposits in
the postal savings banks, this being
the point which critics consider the
most vulnerable in the scheme, Mr..
Gary suggests public buildings. In
the Post-Ofice Department alone, ST.
800, 600 is paid out Tor rentals equiva'
lent to 2 per cent. interest on an in
vestment of $65, OOO,o 900 of deposits.
Among objections to postal banks,
appearing in the press, should be noted
the allegation that there could be nc
warrant that funds deposited would
be invested in the localities where
added facilities are supposed to be
most needed. 1t is further declared
that the experience with postmasters
in the more sparsely settled districts
shows SO much incompetence in the
handling of money orders that il
would be scarcely practical to entrust
them with the handling of additional
funds in the shape of deposits. Special
evidence OF opposition to postal-banks
comes from Name, where the state
bank examiner, speaking for the pri-
vate savings institutions of that region,
attacks the competition of the Govern
ment in this business, and it is report
ed that the Maine congressman, in
Guiding Speaker Reed, will oppose
Postmaster-General Gary's plan in
Congress.
System Safe and Practical.
sin order to understand the opera