The Owosso times. (Owosso, Mich.) 1897-1926, 1907-11-29
OPPOSED TO POSTAL BANKS
Senator Smith Declares They Might
Develop Partially and Bit
terneSS.

Senator VIM. Alden Smith in an
interview with the Detroit Free Press
expressed himself as opposed to the
establishment of a postal savings
bank system. He said;
"The experience of other countries
would hardly be safe guide for us.
Suppose this government were to es-
tablish postal savings banks wherever
there are postoffices. What disposition
would be made of the funds thus
gathered and bearing interest at a
moderate rate? How would this
money be paid out again among the
people?
"This could only be done through
the national banks, and can i'm
agine crisis like the present arising
when New York asks for deposit
from the savings fund, the west and
south also clamoring at the same
time. If any special section should
be thus favored, the people of the re-
gion Disseminated against might
appropriately say that the govern
ment was showing partially for the
individual development of one section
at the expense of all others.
81 don't think that in the present
crisis any section of the country need
ed actual relief except New York,
where the trouble arose and where
the principal difficulty existed. The
trouble with all the rest of the
country was that it could not get it's
balances from New York through the
customary channels. Under a postal
savings system, / can imagine sena-
tors, members of congress and infu-
entail men up braiding the postoffice
department for giving more attention
to the east than to the south ,and
west, causing bitterness and lack of
confidence in the general administra-
ton of such fund.
81 have never believed that such a
system of paternalism should prevail
in this country. If / had my way |
would minimize rather than maxi
miZe the functions and responsible
tiles of the government. Instead of
increasing its agents and multiply
ing it's offices, | would rather see
the country curtail.
Senator Smith was asked what he
thought of Mr. Bryan's suggestion
that the way to restore confidence
was to have the government guaran-
tee the deposits in national banks.
81 think Mr.. Bryan" said the SEN
ator, "overlooks the fact that a
very small proportion of the people
in the United States are bank depos-
itors. To be sure, the percentage in
our country is probably as large, if
not larger, than in most countries,
but why all the people of the United
States should guarantee inviolate
The deposits of small proportion of
the people who select their deposi-
-ory in their own way, is beyond my
IF the government is to guarantee
deposits in the national banks of this
of course the govtrnment
must have its officers in the banks
% supervise and to regulate even to
he smallest detail all the functions
If banking. 1t seems to me this is a
most burdensome function for the
government, and lie leaves the individ-
lal in the unfortunate situation of |
,eing dependent upon the govern
nent rather than upon himself
Il think the suggestion chimerical |
md fantastic in the extreme, neces-
stating a scrutiny and a responsible |
ty on the part of the government !
hat should be, and usually is per-
ormed by individuals.
1t may be said that the government |
loes guarantee national bank cur
ency. That is true and there is no |
question of the wisdom of centraliz-
ng the responsibility and authority |
or issuing money. But the vol
lme OF our national bank notes is in |
Intestinal compared to the volume of |
rade and commerce daily transacted |
n our country. We have but $544,-l
100000 of national bank currency, |
While the volume Of our commerce
will aggregate over $4,000, 600, 900
1T is vastly different thing to fix
he conditions and limitations upon
money that can be issued by national
'anks, and the regulation of how it |
hall be spent"