The Birmingham age-herald., 1908-03-10
From the Boston Globe.


 M MoNG the subjects of vital in- VV terest to the public welfare dis cussed at the recent annual meeting of the National Civic federation was the proposition that postal savings banks be established in the United States. The arguments in favor of this project have been given wide publicity, but the other side of the question does not appear to have received much atten- tion. The civic federation, however, gives opponents as we'll as advocates of any measure full opportunity to state their views, and the opinions expressed con- corning the status of our present banks and against postal savings banks were interesting
 One speaker at this conterence MT. Myron T. Herrick of the Cleveland So- ciety for Savings, presented important data concerning the banking situation The questions to be first settled, in his opinion, before a new departure in bank ing methods are whether or not the peo- pie are suspicious of banks as now con sttuted. and are they without confidence in the integrity of those who control the banking powers of this country? He an- swers his own questions very satisfacto- rily by saying that the banking power of this country is estimated at $160OO, ,OOO 900, and that of the rest of the world at s2O.- 000. .0O0, 0OO
 This banking power is made up of the capital, surplus, undivided profits, depos- 
 banks of every character The predomi- hating item in the list is naturally de- posits The billions quoted do not show any lack of faith in our existing financial, institutions.
 The savings banks, however, are the ones which would be the most directly affected by postal banks. The present showing of savings bank deposits indi- cates whether the people are thrifty and believe in such institutions. The confi- dence in savings banks may be inferred from the fact that deposits in them in 1906 were 8, 100000, and those in sim liar institutions in the rest of the world $S, ,245, 100000. In other words with a pop ulation of about one-twentieth of the world our savings banks hold considera- bly, more than one-thrd of all the world s savings, belonging to the thrifty and eco- nomical.
 The average savings bank deposit in this country is $433. more than one-half larger than any other country. Savings deposits per capita in the United States are $41, and are exceeded by those of six nations only. Canada and Great Britain, whose postal savings banks are fre- quently quoted to show the advantage of such institutions. have per capita savings deposits of but SIP and $23 respectively. ''It is true,' says Mr. Herrick. that large proportion of the savings deposits of this country is held by the banks of the older and more densely populated eastern states This is but natural condition since the people of the west have use of their funds in the purchase of farms improvements of all sorts. and in the building of homes When the time comes that they also have surplus wealth, savings institutions will be es- tablished to care for 1t and the money will continue in its natural channels. Other arguments against the establish ment of the postal savings bank system in this country are. briefly. that the gov-