The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-09-24
FOR POSTAL BANKS.
HarwoOd Would Substitute Govern
ment Supervision of Savings Banks.

Atlantic City. y. J., Sept PAP.
Leroy Harwood. treasurer of the Ma
riners Savings bank of New London,
Ct in an address today on postal saw
iugs bank at the convention of the
savings bank section of the American
Bankers association which was read
by another member in Mr.. Harwood s
absence. declared that the strongest
comes from sections where improper
and inadequate state laws have per-
mite dishonest bankers and ire
sponsible banking Institutions to be-
tray their trust. As corrective
agency and one which might obviate
the necessity of establishing system
of postal savings banks, Mr. Harwood
suggested:
II have thought for some years that
some sort of general governmental
supervision of savings institutions
would be a good idea. By this, L do
not mean that the government should
assume direct charge or supervision
of the banks themselves. but rather
general oversight and advisory attl-
tude toward the state governments
which should, by all means, nave tne
direct supervision of the banks IN
their territory. This would have the
effect perhaps. of bringing about bet
ter and more uniform investment laws
and better examination and superVis-
ion of the banks. where today each
state has its own methods of landing
this business; some good some poor.
The expense to the government would
be so small as to hardly be worth
mentioning. The cost to this govern
rnent of postal savings banks would
undoubtedly be very great
THE savings banks Of this coun-
try are conducted at an annual ex-
pense of about One-fifth of one per
cent per dollar of deposits, and it is
extremely doubtful if this could be
matched by the government, even
after many years of operation A
great disadvantage which has been
repeatedly brought to attention is the
fact that the money which may be de-
posted with the government is i'm
mediately taken away from the local
ity TO which it belongs, and that To-
cality deprived of its use in develop
ment of its business and property.
This of itself. is most serious OBJ
lection. The western or southern
community. to which the postal saw
ings bank idea would appeal, needs all
its moneys for its own development
and use This money should be gath
cred together and loaned back to the
communities on mrtagages and ntes.
The rapid development of the eastern
states has been due in no small part
10 this principle. and the west and
south should not be deprived of these
advantages. 1t is necessary. there
fore. to devise some plan for keeping
this money near home The mutual
savings bank of the east is perhaps
considered the ideal savings bank and
the process of establishing and build
ing up these institutions is simple IN
the extreme. Were the workings of
these institutions better understood,
they would no doubt meet with favor
in all parts of the Country, and gov
eminent savings bank commission
could be OF great service in spreading
information of this kind wherever
there seems to be a desire for savings
depoSitaries."
81 n d
dress offered resolution providing
that the association appoint a COM
rnittee to investigate the question of
postal savings banks in limited ter
ritory and the desirability and scope
OF a government savings bank COM
mission