The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1908-10-07
POSTAL SAVINGS BANKS
Machinery of Congress Already
Started for Postal Savings
Bank Law.
A Safe and Sane Plan for the Con-
venience of the People and the
Encouragement OF Thrift.


postal savings bank system for the con-
venience of the people and the encour-
agement of thrift
This is the declaration Of the Repub-
lican national platform, and postal saw
| ings banks will without doubt be au-
/ thorized by law and established as
part of our financial system by the
action of Congress at its coming SEES
sion, which will be convened in Decem-
! Der. Indeed, much has already been
i accomplished towards the enactment OF
| this law At the last session Of Con-
gress a bill was carefully prepared
which met with the approval of the
Postmaster General, and was reported
upon favorably by the Senate Commit
tee on Post Offices and Post Roads.
/ This bill is now on the Senate calendar
and can be acted upon as soon as Con-
gresS is convened.
The scope of the proposed law is set
forth in the committee report, which is
In part as follows:
Committee Report.
The purpose of this bill is to place
at the disposal of people of small
means the machinery of the Postoffice
Department to aid and encourage them
to save their earnings. The subject of
postal savings banks or repositories is
not new in this country and it may be
truly. said to be quite familiar to the
people Of Europe and the British colon
les. The propriety Of establishing
postal savings banks became the sub
ject of discussion in England as early
as 1907 Every objection to sach use
of the postoffice facilities urged in this
country was vigorously pressed in the
long-continued discussion of the subject
in England.
For over fifty years private savings
institutions waged bitter opposition to
the growing sentiment in favor of postal
savings banks, but Notwithstanding
such opposition in 1861 an act of Par
!, lament was passed entitled An act
to grant additional facilities for de-
posting small savings with the security
of the government for the due repay
! ment thereof" That the alarm Of pri-
/, vate institutions was i'll founded is
amply proven by the recorded fact that
5 the private savings banks increased
: their capital by more than ten millions
of dollars i'll the first fifteen years fol
lowing the establishment of postal say
a ings Institutions
That the postal savings institutions
\ proved successful is satisfactorily at
- tested by the fact that no backward
step has ever been taken in England on
. this subject and by the further fact
that in rapid succession the lead Of
: England was taken by other countries
: The primary purpose Of these instl-
, tutioLs is to encourage THRIFT and 4
:. saving disposition among the people of
small means by placing at their dis
!. posal in every part Of the country
ready facilities for the depositiug Of
: small sums, with absolute assurance Of
repayment on demand with a low rate
II of interest on a limited aggregate
q amount
: Postal Savings Barks Needed.
In certain parts o. oar ecu Try saw
o ings institutions are su.Aciellt.F nunle
!. Gus to accommodate the people. bu
y such areas are quite limited. being con
- fined to New England and New Yor'
. 1t is alleged that by reason of the nun
= Der and location of savings banks there
is one savings account to every two Of
% the population Of New England. where
% as in all the country outside New En-
gland and New York the average is
only m |
- of the population. Taking such figures
"a to be approximately correct and recog-
nizing the fact that the people of all
:, sections Of this country are pretty
;, much the same in habits, inclnations,
o and purposes, it must be obvious to the
,s most casual observer that the people
i of the South, the Middle West, and the
West do not save their earnings as do
those OF New England from the mere
want of secure places in which deposits
!. may be made.
To those who feel inclined to believe
d that the establishment of postal saw
ings repositories will involve an ele-
ment of paternalism it seems quite suf-
ficient to suggest that the machinery Of
the Postoffice Department is now in ex-
istence and will continue to exist with.
. out diminution Of expense whether
such repositories are created or not
I and that the establishment Of these
Il repositories for the benefit of the
9 people will not involve one farthing Of
. loss to the Post-Ofice Department, but
. will probably, on the contrary prove
more than self-sustaining. Very slight
L computation will clearly demonstrate
y that the postal savings depositors can
II not burden the Post Office Department
y with any additional deficiency.
e. II I am elected President, I shall
q. urge upon Congress, with every hope
IS Of success, that a law be passed requir-