Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-10-11
HOW TO SECURE A POSTAL saw
lNGS BANK,

A Chicago dispatch states that the
movement inaugurated in that city,
for the establishment in the United
States of postal savings bank is re-
ceiving hearty support throughout the
country. This movement has been agi-
tated at various times for many years
but so far as we know has never, yet
gotten beyond congressional commit.
tee. Are postal savings banks desir-
able, and can sufficient influence be
brought upon congress to secure the
establishment of such a system in the
United States? Canada has the postal
savings bank and every visitor to
that country, who has made even a
cursory examination, has discovered
that it is one of the most popular finan-
cial institutions in that country De-
posits are received at the various post
Offices to an amount not exceeding
$1,000 from each depositor. The money
is used by the government, which
pays to the depositors 8 per cent in
terest. Thirty days notice is required
banking interests of Canada recognize
the postal savings bank as a perma-
nent and fixed institution and there
is no active opposition to It,
In the United States the banking in
terests are practically unanimous in
their opposition to a postal savings
bank and unless this opposition can
be overcome it is doubtful if congress
can or will establish such a system in
the United States. That postal saw
ings bank is desirable, in our opinion,
is unquestioned. The capitalist Is able
to invest his surplus funds in govern
ment bonds and thus have the guar
saantee of the government behind his
Alvestment. Why should not the poor
man have the same guarantee behind
his savings? One of the greatest bene-
ftsSthat the people could have from
their government would be guaran-
tee, in some way, by the state or ma
ton or both, Of their hard earned saw
ings.
We believe that such a guarantee
can be secured in a manner that
would have the active cooperation
and endorsement of the banking inter-
ests, instead of their opposition as at
present Why could not the govern
ment establish system by which saw
ings deposits would be received at
every post Office, on which deposits
the government would pay, let us say
21a per cent interest? Why could not
these savings be Immediately turned
into the channels of business and
trades through the medium Of the
banks themselves, by the government
loaning these savings funds to the
banks under proper guarantees at say
per cent interest?
The difference between what the
governor would pay in interest and
what it would receive in interest
would cover all of the expenses Of adj
ministration of the system and all the
losses that might accrue to the govern
ment. The money received by the post
offices in each county could, by pre-
ference under the law, be deposited in
the banks Of each respective county
SO that the money saved in given
community would be available for the
use in such community A bank hav-
ing a large government deposit Of
this character. would be in the safest
possible position for it would never
fear run or demand for instant
payment on the part of the govern
mental depositorS.
There is another system by which
savings deposits can have the guaran-
tee of the state or national govern
ment behind them. The state of
Iowa, for instance, by levying very
small tax on savings deposits could
guarantee to the amount of $1,000 the
deposits Of every depositor in state