Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-01-24
POSTAL SAVINGS BANK IMMINENT.

A we'll informed gentleman called at
the T.-R office this week to learn
why the newspaper did not urge the
adoption of postal savings banks, be-
cause, as he expressed it, nearly eV-
cry man you meet on the street is for
it," and he had just learned that peo-
ders at the Marshaltown postoffice to
be sailed away as a savings fund that
will not be lost in a bank failure Here
is suggestion to the banking ira
ternity which should cause them to sit
up and take notice. The postmaster
general has recommended postal saw
ings banks, the president did not dis
favor them, the United States govern
ment already has them in the Philip
pines, Secretary Taft in his report as
secretary of war says that they are a
success, and he is likely to be the next
president. 1t may not be many years
now until the savings of the people
will be. deposited in the postoffices. and
when deposited in the banks by I'm
Gle Sam will have to be secured by col
lateral Do the banks want this?
favored postal savings banks is be-
cause it has seemed that there are 9TH
err more simple and less paternalistic
ways of guaranteeing the public Sc
curity for its savings than by putting
the general government into the bank
ing business When men invest their
money in houses and store buildings,
they never think Of asking their gov
eminent to protect them against loss
by fire or storm. They insure the
buildings, and business experience has
taught that they are perfectly safe.
No man hesitates to put his money
into buildings because of fear of loss by
fire. Likewise does man insure his
ings in case of his death by taking out
a life insurance policy. This insur-
ance. too. is safe and sound in business
experience Nothing could be more
natural, more businesslike or safer,
than insuring bank deposits by the
banks themselves at their own ex-
pense. The cost would be only small
fraction of l per cent per annum, and
the guarantee to the public would for
ever stop runs on bank or with
drawals for boarding purposes.
The government should verN prop
erly require insurance of deposits as
part of it's regulation. 1t now exam
ines banks regularly to insure honesty
of management. 1t requires 10 per
cent of the deposits to be kept on hand
to insure prompt payment to deposit
tors. And it requires double liabil-
| ity from the stockholders 1t would
/ be fully as simple and no more radi-
| cal to require banks to insure their
deposits than to require by statute
| that the stockholders must hold them
selves liable for guarantee fund equal
to the amount they have invested in
the business. The new state of Okla
homa, since the panic of few months
| ago, has passed law requiring that
state banks keep on deposit with the
state auditor l per cent of their de-
| posts as a guarantee fund to insure
deposits in all state banks, and ma
| tional banks can come in if they want
to by putting up their l per cent and
submitting to state inspection. When
ever the fund is impaired by bank
failure it is replenished by an assess
ment on all banks pro rata according
| to deposits. This is fraternal insur-
ance. The city banks do the same
thing now when they all stand to-