The Mena weekly star., 1907-11-14
POSTAL SAVINGS BANKS,

PUSIAL SAtlNOS bANkS,
 Postmaster General Meyer in speaking of the recommendations which he would make to Congress, said:
 A matter of great public interest which shall recommend for the con sideration of Congress is postal sav- ings bank system, which has been adopted by many countries in the last thirty or forty years. These banks were established in England as early as 1861, in France in 1882, in Austria in 1883.
 We desire to encourage among our people economy and thrift, and by the use of the postal savings banks to give them every opportunity to husband their resources. The policy will not be to compete in any way with the savings banks, but rather to encourage the habit of depositing savings. THE PEOPLE THAT WE SHALL WANT TO REACH ARE, FIRST, THOSE WHO HAVE NOT THE FACILITIES AT HAND FOR DEPOSITING THEIR MONEY IN A SAVINGS BANK, AND SECONDLY, THE FOREIGN POPU- LAYTON WHICH IS ENTERING THE COUNTRY IN SUCH ENOR- NOUS NUMBERS AND WHICH IS, TO A GREAT EXTENT, BOARDING ITS SURPLUS EARNINGS. The im- migrants reach the United States sus- picious of any private banking institu- tion but with ABSOLUTE FAITH IN THE GOVERNMENT. We have evi- dence of this in the fact that they are buying postal money orders payable to themselves. OUR OBJECT IS TO BRING HIDDEN MONEY TO LIGHT, TO INSTILL LIFE INTO IT, AND TO LEAD IT AGAIN INTO THE CHAN NELS OF TRADE, FOR THE MU- TUAL BENEFIT OF LABOR AND CAPITAL, AND THUS ADD TO THE PROSPERITY THROUGHOUT THE LAND
 Furthermore, we should encourage the foreigner to deposit his earnings, because after he has accumulated a few hundred dollars be will not be con tent to receive merely 2 per cent in interest, but will seek to purchase a home; and the moment he acquires real property in this country he becomes a better citizen, is more actively inter ested in the affairs of the nation, and at the same time places himself and his dependents beyond likelihood of be- coming public charge.
 It is proposed to bring this money into circulation by asking authority from Congress to place the deposits in the national banks of the country, NOT IN A FEW FINANCIAL CENTERS, BUT IN THE BANKS OF THE DIS TRICT WHERE THE MONEY HAS BEEN DEPOSITED. have been assured by prominent presidents of national banks that the Postoffice Department may count on receiving for such money turned over to them a rate of interest varying from to per cent. The department would guaran- cent semiannually. Thus evidence is given to the savings banks that we are not in competition with them and that their deposits, their rates being usual ly from to 4 per cent. The amount of money in the United States is esti- mated to be 8, ,123, 1, ,056, 673, of which $1. .010. 700, 900 is in the banks and $333, S55, ,05S in the treasury; the bal ance, $l, ITS, 50l, ,620, being in the hands of individuals and other sources. This last amount seems large at first glance, but when we think of the wages that people are earning today, and that if each person in the country had in his possession $l0 in cash, coco, 900, GOO would be accounted for, or about half the amount.
 Those sentences set in capital let ters are of special interest. The first feature brought out is that it is not, as has been claimed, the desire or intent of the government to encourage the withdrawal of money from circulation, but to bring it to light and lead it into channels of trade and thus add to the prosperity of the land.
 Then it has been said that the money would be placed in few big banks of New York, to be used by spectators to the detriment of the people at large.
 The reader will note that Mir. Meyer specially states that the money shall be put into the banks of the district where the money has been deposited" That would seem to answer one argument that has been used by some against postal savings banks.
 This plan outlined by Mir. Meyer to put the money back into circula- ton through the banks is probably the best method that can be devised that would have any considerable chance of overcoming the opposition of the banking interests and being enacted into law by Congress. It will be noted that almost every law suggested that has to do with the currency is drawn with a view of placing more power and more earn ing capacity in the hands of the national banks. It is perfectly natural that it should be so. Sc long as bankers can make the laws or control them it is but human that they should strengthen themselves But is it not possible that there is { larger interest that of most of tho people which should be considered
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