The Washington times., 1905-12-07
SAVINGS ARE LOW
FROM Low WAGES,
REPLY BANKERS
No Cali for Depart
mental Bank, They
Say.
CRITICISE SHAW'S PLAN
Mr., Edison Sees Little Dis
position in Clerks to
Put BY.
CRITICISE SHAW'S PLAN

Secretary Shaws scheme Of a De-
partmental Savings Bank paying per
cent for Government employees. does
not meet approval from the leading
fnanciers OF this city Several this
morning begged to be excused from eN-
pressing opinions on the ground that
they had not given the matter much
thought. while others did not hesitate
TO question the practicability Of Secre-
tary Shaw's plan.
Thomas r. Jones, president OF the
National Safe Deposit Savings and
Trust Company. said:
Thomas R. Jones.
81 do not care to express an opinion
In this matter further than TO say that
/ think Secretary Shaw has been mis-
informed as TO the number of depOs-
itors and the amount on deposit i'm saw
fngs institutions in this city. Our COM
pany. as the successor OF the National
Savings Bank. organized in 1870. has
17.e0O.oeo on deposit to the credit OF
more than 1900 depositors. making an
average OF even less than S240 each.
We are practically savings bank and
among our depositors is a large number
OF Government employees
President c. J. Bell. of the American
Security and Trust Company, had this
10 say:
c. J. BELL.
Secretary Shaw, IL he is correctly
quoted. makes one grave error IN saying
that the total savings in this city
amount 10 but little over 100000 Why?
Because the four tr1lst companies which
are under Government control I'm this
town have aggregate deposits OF over
sls.Os0oo-- large proportion OF which
is made UP OF savings accounts on which
interest is paid. A large number Of these
depositors are connected in some way
with the Government service.
The main reason, L think, that the
savings hers not so large as one
would expect. Is the low average salary
paid by the Government and the enor-
nous Increase in living expenses. As
far as the scheme OF establishing a 4
per cent Government bank is concerned.
j think II is theoretical, not practical.
The experience of Government run
banks In the past was not successful.
and l see no reason for a brighter
future.
The banks and trust companies of
the District are all conservaCively run
and quite able 10 take care of the saw
lngs OF this population. As far as the
4 per cent inducement is concerned /
might mention this fact: As soon as
one OF our depositors gets n few hun
dred dollars accumulated he comes to
us and takes advice on buying a bond
OF some other investment that will pay
him not per cent, but "A per cent or
more
- President John Joy Edison. OF the
Washington Loan and Trust Company,
made the Following statement:
]. ]. Edison.
Il know something about the Govern
ment clerks life as / have lived in
Washington since 1853. forty-two years.
and eleven OF these 1 spent az a clerk
In the Treasury Department had
therefore, an excellent opportunity 10
form an opinion OF the civil service in
nuences in and out OF the service
II do not hesitate 10 saw that 7 do
not believe that the Government en-
ployes would ever adopt a general and
systematic voluntary saving habit as
thsy shouid do II they are TO make an
actual provision for old age
For many years i have been Of the
opinion that the only successful and
practical method 10 get them to pro-
vide an annuity for their old age upon
retirement Is for percentage OF their
salaries 10 be deducted Moreover no
one needs to accept a position under
The Government IL this Governmental
provision should prove distasteful, and
L do not fear that the Government
would. however. suffer for a dearth Of
employees
1T must be added. however. that the
living expenses In Washington today as
compared with those OF twenty or thirty
nye or even forty years ago are much
higher. But the salaries are the same
now as twenty or forty years ago. and
are therefore in my opinion too low.
Hence the difficulty clerks experience IN
toiloWlnB my saving scheme.