The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1899-05-09

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It is not from any spirit OF hos
tility to existing savings Institutions,
nor with a view TO suggesting remedy
for any possible defects or shortcom
ings that may have been revealed, that
I am induced to favor the plan OF
postal savings banks. I believe that
as a rule our savings banks are hon
estIy and efficiently managed and that
if they fail to meet every requirement
of an ideal institution with regard to
serving the wants of the people it is
owing to peculiar conditions entirely
beyond their control. I believe that
postal savings banks instead OF acting
adversely to the interest Of private
savings institutions would have the
effect of strengthening them, because
they would inspire public confidence
in, and popularizs banking methods.
There are millions Of dollars to day
boarded away, doing no good to the
owners nor the community at large,
and this condition exists as a natural
result of ignorance, prejudice, or lack
of confidence on the part Of that great
mass of people who have not sufficient
education or experience to understand
the complex problems OF finance, and
hence cannot be expected to place con-
hdence in what they do not under
stand. There is no person, however,
SO ignorant nor so simple minded as
not to have complete confidence in
anything that is absolutely controlled
by the government. Our system OF
currency has educated the people along
this line, and the holder OF the Ma
tional Bank note, although he knows
it was issued by some particular bank,
never concerns himself about the bank
itself, because he knows that the gov
eminent ia pledged to the redemption
Of that note, and his faith in and 10y
atty to the government does not per.
NIT the shadow of suggestion of q
doubt to enter his mind.
The regular savings in Institutions of
the country would be very glad to get
rid Of that timid, doubtful, and suspi
cious class Of depositors. They are a
constant menace to the standing of q
bank, for a mere rumor, unfounded
and unreasonable, will cause them to
make a run, which, even if promptly
checked, has a tendency to injure the
bank and hamper it in extending the
limit of it's usefulness.
It is we'll known that savings banks
are required by law to keep in their
vaults about ten per cent. of the amount
of the deposits. This reserve money
must lie practically idle and unproduc
tive. To this amount of unproductive
capital add the amount that is boarded
away in the traditional stocking or the
retired stove, and you al form some
idea of the immense amount Of money
which, if some means could be devised
for keeping it in circulation, would do
&C much to develop and improve estab
lished and new enterprises fol- the bet
torment of the condition Of the people.
Why go on perilous expeditions to the
Klondike to liberate the gold that is
locked up in those frozen hills, when
we have such a vast volume of gold
already coined that is lying idle and
unproductive all around us3 IL we
can liberate and put to use a hundred
million dollars that we now have, is
not the effect the same as getting one
hundred millions from the minersR It
is not what we eat, but what we digest,
that strengthens and develops the
physical system, and it is not the
money we possess, but what we use,
that turns the wheels of commerce
and co-operates with Drawn and brain
in making our county prosperous.
We are all free to give the advice to
save, save, save, but we have not done
our whole duty unless we provide some
means whereby the small sums may
be saved and still not withdrawn from
circulation, as they would be if they
were merely boarded. I think that il
every person had such a thorough edu
cation in business affairs, and was sui
fciently versed in the principles of
finance to deal with existing banks
understandingly, the need of postal
savings banks would not be sufficient
to justify III in establishing them. But
we must take conditions not az we
would like them, but as they are. We
must face the fact that private banks
cannos, if they would, furnish the facil
tiles that the government could easily
command. For instance, the postal
savings bank would not need to keep
the large reserve on hand that private
savings banks are obliged to, because