The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1908-01-17

savings banks in the United States-$s 500
600, 000-92 per. cent. is on deposit in eleven
States Of the Union, the New England
States, New York, Pennsylvania, Illinois,
Iowa and California, thus leaving thirty
five States representing deposits of only 8
per cent. This demonstrates plainly that
the opportunities for depositing money in
savings banks has not been sufficiently
developed, especially in the South and
West.
Every facility should be open to our
people, and every man. woman and child
should be able to deposit savings in any
portion of the country at any time of the
day. This can be afforded by the Post
office Department, because the postoffice
is established in every city, town and viii
lase, there beiug exactly q, S14 postoffices.
THE postal savings banks, besides en-
couraging economy and thrift, would af-
ford a place of deposit, free from any
possibility of doubt or suspicion, for vast
sums of money which might otherwise be
boarded and kept out of circulation through
Ignorance or lack of confidence. The labor
ing man going home at the end of the
week would frequently but his money in
the savings banks IL the opportunity were
open to him, but he returns from his em-
pioyment at a time of the day when the
banks are closed and the saloons are open.
II thS uhildo1 l6pOIb L nave ItIOh-
mended a postal savings bank system
based on the experience of Canada for
the last forty years. Therefore, we are
proiting by their experience in applying
the system to the United States. with this
important exception: In Canada the money
Is put into the Treasury, the amount now
on deposit being $500 600. Our plan Is to
obtain authority from Congress to deposit
the money received at the postof1ice In the
national h9nEG of that narfipu1aF State
In that way each locality would be bene-
fitted by having this new money (Which
had been boarded and had lost its func-
tions) led back into the channels of trade
to the mutual benefit of capital and labor.
No Competition with Banks.
A an evidence of good faith h a
there Is no intention or desire to COM
pete with existing savings banks, the rate
of interest recommended is 2 per cent,
the amount of deposit being limited to $500
for any individual or society. The gov
eminent Postofice Department. is a pre-
ferred creditor, and the Postmaster Cen
eral does not ask that any government
bonds shall be given as collateral for the
deposits, as it is not desirable to absorb
the bonds for that purpose, but that they
be left free for currency. The Postofice
Department would be secured as being
a. pItlsfIeu cIeuitof, anu Dy reason OF Ine
liability OF the stockholders Of national
banks for double the amount of stock
held by them, and the facility Through
the Comptroller of the Currency OF ex-
amining the banks at any time.
I'm answer to the point which has been
raised In a very few instances, that this
would tend to encourage depositors to
take their money from State OF national
banks, 1t is s~elf-evident that any indi-
Vidual who has the intelligence to go to a
national or State bank with his deposit
does so for the advantage of having IL
subject TO payment by check and in order
to obtain accommodations in tho way OF
discounts 0t his own paper or that of his
business clients. No business accommodate
lions of any kind or description would be
obtained at n postal savings bank, not
even that Of drawing the money by check.
would Help in Financial Troubles.
AS to tic effect 1t would have on
savings banks il requires but very little
thought to convince one that a depositor
who has his money in a savings banks
(where he Is receiving 3 or 4 Der cent?
will not withdraw 1t and place IL with
the postal savings banks, thus reducing his
interest by one-third of one-half, except.
possibly, in times of crises or furries such
as we have experienced lately; aud az
such moments the great advantages of the
postal savings banks would be felt because
of the guarantee OF the government behind
the deposits. The government would be
enabled to lead the money pack instantly