The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1907-09-25

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yate bank on department store.
u IL apparent, we believe, that only
on basic and vital questions can laws be
framed that can be enacted uniformly
In the various states. az IL Il hardly
possible 10 draft savings bank bin
IN It's entirety that will meet local con.
ditiony the country over. The excellent
laws governing savings institutions In
the Eastern and New England states
can serve as guide in other States
where additional legislation IL desir-
able.
One OF the greatest benefits accruing
from the laws Of other States is the
fact OF their being uniform In their
phraseology. Thus judicial decision
In one State on given statement Of
facts may prevent the Same question
arising In another state. II the wording
OF the act " the same.
There should be a law in every State
excmpting savings deposits up TO rea-
sonable amount from taxation. At
present many Of the States place tax
upon thrift.
"a rigid uniform law regarding the
investment OF funds Is prime necessity.
Make 1t apparent that the safest place
for savings is in a savings bank and
thus save the people from the mael-
storm OF speculation.
III bank engages in more than one
kind Of banking. its savings deposits
should be invested in conservative secu'
rites, and the accounting Of such de-
posts and investments should be kept
separate and apart, and in case OF dis
Iaster to- the institution. such invest
ments TO be held exclusively for th,
benefit Of the savings depositors.
BY appropriate enactment the right
OF minor and married women in thei
accounts should be made uniform, joint
! and two name accounts, as well as trus'
tee accounts. or deposits made by on
person for the benefit Of another shoult
DO covered by a plain and uniform
statute.
I'm other words. those vital ques
tions, which are usually covered by tn
rules Of well organized and intelligent,
directed savings institutions, shoul'
have proper enactment into uniform
law in the various States, thus removin
from the fields Of conjecture all doubt
as to whether such rules are a bindin
contract or not.
'-P. Leroy Harwood. treasurer OF th
Mariners Savings Bank, OF New Londor
CT. in an address today on postal say
ings banks at the convention Of the say
ings bank section OF the America
Bankers Association declared that tn
strongest demand for postal saving
banks comes from sections where i'm
proper and inadequate state laws hav
permitted dishonest bankers and ire
sponsible banking institutions to betra,
their trust. As a corrective agency an
on which might obviate the necessity o
establishing a system of postal saving
banks, Mr.. Harwood suggested:
Il have thought for some years tina
some sort of general governmental su
peryision of savings institutions woult
be good thing. By this, / do no
ment that the Government should as
sumo direct charge or supervision o.
the banks themselves. but rather a gen
eral oversight and advisory attitude
toward the state governments, which
should, by all means, have the direct
supervision of the banks in their ter.
ritory. This would have the effect per
haps, OF bringing about better and more
uniform investment laws and better ex.
animation and supervision of the banks
where today each state has its owr
method OF handling this business. somt
good. some poor. The expense to thu
Government would be SO small as t
hardly be worth mentioning. The cost
to this government of postal saving;
banks would undoubtedly be very great
The savings banks of this country, ar,
conducted at an annual expense o.
about one-fifth of one per cent per dollal
of deposits, and il is extremely doubt.
full If this could be matched by the gov
ernment, even after many years of oper.
alton. A great disadvantage which has
been repeatedly brought to attention il
the fact that the money which may bt
deposited with the government is i'm
mediately taken away from the locality
to which ii belongs, and that locality
deprived of its use in development Of
its business and property. That, of it.
self is most serious objection. The
Western or Southern community, tc
which the postal savings banks idea
would appeal, needs all its moneys fol
its own development and use. The mon
ey should be gathered together and loan
ed back to the communities on mort
cages and notes. The rapid development
OF the eastern states has been due in
no small part to this principle and the
West and South should not be deprived
of these advantages. 1t is necessary