Omaha daily bee., 1908-12-28
THE FIGHr ON POSTAL SAVINGS.

THE FIGHT ON POSTAL SAVINGS.
The opposition to the postal oav-
ings banks system, now under discus
sion in the senate. is being confined
practically to the argument set up in
resolutions by the bankers associa-
lions in several states that the plan
would work hardship on the savings
banks and other financial institutions
already established. This opposition
is voiced by the Washington Post, as
follows:
Suppose a postal savings bank is es-
tablished and every postoffice IS made a
depository. Timid folks will remove their
deposits from the banks we now have,
to the injury, IL not the ruin. OF thou
sands OF worthy finaneiers, who do so
much TO advance the material prosperity
Of the people.
The record in all countries that
have tried the postal bank system is
against this contention. The British
bankers fought the plan for years, but
when the system was adopted it was
discovered that, while as many as So
900 persons appeared In the post
offices to open accounts IN a single
day, the business of the private banks
also increased, instead of being dimin-
ished. There are today nearly H.
600, 900 savings accounts in the Brit
ish postal banks, each averaging about
$72 and the private savings banks
have been benefited instead of in
jured. In France there are 100000
persons who have s 1000 each in the
postal banks and nearly 100000
who have $4,000 each, and yet the
private banks in France are the most
prosperous in the world. The testi-
mony all is that the postal banks en-
courage thrift and furnish real aid to
the private financial concerns.
One strong argument in favor of
the postal savings banks is made by
Postmaster General Meyer when he
points out that $3,590,245,402 of the
savings accounts of the country are
in fourteen states, while only lie per
cent of the total savings deposits are
held in the remaining thirty-twO
states and territories. He adds:
In the thirty-two states referred to there
are many localities where there are no
savings banks, and in some cases no
banks of any kind. 1t is there that con-
siderable money is held In hiding, which
is neither absolutely safe nor In circula-
ton for the benefit of the community.
1t has been estimated that altogether
fully $500. 600, 600 not placed in any bank,
due to want of opportunity or lack of
confidence, might be brought back into
circulation through the agency of postal
savings banks.
As an evidence Of the demand for
postal savings banks, we have reports
from postmasters that they have been
compelled to refuse to accept deposits
offered by foreigners for safe keeping,
and also that our own people have bought
postal money orders during the last year.
payable to themselves, to the extent of
SS.1O4,447.
A postoffice inspector has reported that
one family residing near a small post
office in Washington has 81, 900 on de-
post In the postal banks of British Co
lumbia.
About the only other serious objec-
ton offered is that found in the dem
~ocratic national platform which "con-
dennis the policy of the republican
party in proposing a plan (postal sav-
ings banks) by which. they will aggre-
gate the deposits of rural communi-
ties and ~redeposit the same while un-
der government charge with the banks
of Wall street." The pending bill
provides that the deposits received at
the postofice be deposited in national
banks, cat the nearest practicable
point" or invested in state, territorial
or municipal bonds. The entire effect
of the plan would be to prevent the
accumulation of these deposits in Wall
street banks.
The republican party is pledged to
give the country a postal savings
banks system, Mr.. Taft is committed
to 1t, the representatives in congress
are obligated to it and it is a step in
the direction Of national progress that
the people demand shall be taken.
HOW FAR Is 1T APPLICABLE~