Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-09-25
POSTAL BANKS
OPPOSED BY
BANKERS
BLAME INADEQUATE
LAWS FOR AGITATION
State Control of Savings In
StitutionS Urged, Supple
mented by General Super
vision by the Government,

Atlantic City n. j., Sept. 24.-P
lie Roy Harwood. treasurer of the
Mariners Savings bank of New Lon
don, Conn, in an address today on
postal savings bank at the convention
Of the savings bank section of the
American Bankers association, de-
clared that the strongest demand for
postal savings banks comes from Sec
tions where improper and inadequate
state laws have permitted dishonest
bankers and irresponsible banking in
stitutions to betray their trust. As a
corrective agency and one which
might obviate the necessity Of estab-
fishing system of postal savings
banks, Mr.. H9rwood suggested:
Il have thought for some years
that some sort of general government
tai supervision of savings institutions
would be a good idea. BY this, | do
not mean that the government should
assume direct charge or supervision
of the banks themselves, but rather a
general oversight and advisory atti
tude toward the state governments
which should, by all means, have the
direct supervision of the banks in
their territory. This would have the
effect, perhaps of bringing about bet
W
and better examination and supervi-
sion of the banks where today each
state has its own methods of han
ding this business, some good, some
poor. The expense to the governments
would be so small as to hardly be
worth mentioning. The cost to this
government of postal savings banks
would undoubtedly be very great The
savings banks of this country are con-
y An uf nT
fifth of one per cent per dollar of
deposits, and II is eytrer'~' '--Ntful
If this could be , ,ae gov
ernment even after many years OF
operation great disadvantage
which has repeatedly been brought to
attention is the fact that the money
which may be deposited with the gov
ernment Is Immediately taken away
sin tic Locality 20 Whicn Il belongs,
and that locanty deprived OF It's use
in development Of its business and
property. This. OF itself, is a most
serious objection The western or
southern community, to which the
postal savings bank idea would ap-
peal, needs all its moneys tor its own
development and use. This money
should be gathered together and
loaned back to the communities or
mortgages and notes. The rapid de-
been due In no small part to this prin-
ciple, and the west and south should
not be deprived of these advantages.
It Is necessary. therefore to devise
some plan for keeping this money
near home. The mutual savings bank
of the east Is perhaps considered tn
ideal savings bank and the process Of
building up these Institutions is sim
pie in the extreme Were the work
I'M Of In
derstood. they would no doubt meet
with favor In all parts of the country.
and government savings bank com
mission could be Of great service in
spreading information of this kind
wherever there seems to be a desire
for savings depositaries."
Mr.. HarwoOd. in concluding his I'd
dress. offered a resolution prOvi NJ
that the association appoint a COM
mittee TO investigate the question Of
postal savings banks in a limited ter
ritory and the desirability and scope
Of government savings bank COM
mission
The New Massachusetts Law.
Alfred L. Aikon. treasurer of the
Worcester County Institution for Saw
ings. of Worcester. Mass, described
the new law passed by the Massachu-
setts Legislature. permitting the estab-
ment by savings banks. Commenting
thereon, he said:
II am obliged to confess that I can
see no merit In Il beyond that of in
genuity. Perhaps as a savings bank
official and therefore fairly conserva-
tive In my point Of view. I am timid
in welcoming such an innovation. but
II seems 10 me that Il is very desira-
bile that the savings banks, which are
q Naraff N
wage Garner. should be kept free from
any undertaking that is in a measure
speculative and experimental as the
savings bank Insurance plan, even by
its friends, Is admitted to be. The
entrance upon any experimental field
would be looked upon with great sus-
plcion by all classes Of dcpositors and
would create a feeling Of distrust
which has heretofore been conspicu-
Gus BY IT. absence MY doubts as 10
the success of the plan, would per-
haps be less clearly defined had | been
able to find a single life Insurance
expert who believed for one minute
that the plan would succeed or had l
found the treasurer Of a single large
and active savings bank who en-
dorsed the bill"
Mr.. Aiken said the attempt OF the
British postoffice TO carry on life
The results there, he said. were posi-
lively laughabie to the insurance men
and must discourage the optimist who
longs for the savings insurance banks.
Continuing. he said
There really can be but one eN-
cuse for this measure. namely the
hope that Il may provide cheaper in
surance for the average wage earner'
hut Il seems to me that there Is no
substantial ground for such a hope.
In an our larger centers % population
and q u only there that small insui
ance companies can live u VIII cost
the insured az much 20 get hts pre-
mium 90 the bank BY his own enoi
a. would be his contributive share
In the salary of the collector pro-
vided by the company
The investments of this saEing
bank are restricted just as are those
~ the savings bank proper. The scope
81 the competing life Insurance CON-
pany investment L. much WioeT' lts
taxes are about one-hah as freat-