The Fargo forum and daily republican., 1909-01-27
Fight ON POSTAL
BANKS A BLUNDER
BANKERS ADMIT OPPOSITION Is
A PRoRABLE BooMERARo.
Measure Would Help Thsm-Prss.
Julius 0oldxier Of Postal Savings
Bank League Points Out Benefits 20
sans<s a. Well 40 to General PubiIo.

Chicago, Jan. 27.-Bankers already
begin to doubt the wisdom OF the ac-
ton of the Chicago Clearing House
association, which IL the latest, and OF
similar bodies OF bankers in middle
western cities. in protesting against
the proposed postal savings bank bill
The bankers themselves are not a unit
on the protest, and the feeling created
is intensely hostile.
Prominent Chicago bankers have
privately expressed themselves In
favor of the Carter bill, as now
amended. They have said also that
the heads Of many OF the other bis
banks here and in other cities where
"antipostal bank" resolutions have
been adopted realize that the estab-
lishment of government savings banks
will bring money to existing savings
banks rather than hurt them but have
felt themselves bound by the action ot
the American Bankers association. II
Is feared that opposition to the meas
ure will react as q boomerang upon
the banks In general.
THE argument that postal savings
banks are unwise because they would
cause a drain of funds from existing
institutions Is not only selfish but un-
true said one banker. "'It is only
the shortsighred banker who does not
realize this. Publicly all bankers are
opposed to the measure, but privately
there is no unanimous opinion.
"If the people really want postal
banks they have only to demand the
immediate passage OF a bill. and oppo-
sition on the part of financial inter-
ests will fade away like smoke"
The resolutions Of the Clearing
House association drew q vigorous
reply from the Postal Savings Bank
league OF the United States, which
has headquarters in the First Nation
al bank building, In the shape of q
special statement by Pres. Julius
Goldzier, who was formerly a mem
Der OF congress from the Fourth
district of Illinois. The advisory com.
mittee OF the league includes Gov.
ernors Gilchrist OF Florida, Noel oi
Mississippi and Brady of Idaho, ex.
Senator Mason of Chicago, ana May.
ors Cornell of Kansas City and Hooker
of Hartford, Conn. ".
"A complete answer to the fears oi
those who believe or profess to believt
that postal savings banks are q detri.
nent to the banking business is fur.
nished by the statistics OF those coun.
tries which have established thes,
peoples banks" said Mr.. Goldzier
show large and marked increases II
deposits and in the number of de.
positors in savings and commercial
banks.
Take the instance of Great Britain
! Out Of population of $4,000, 900 4
records individual savings deposit
(postaD OF 1O,3s2,O00. These figures
make approximately one out OF every
four Inhabitants depositor withou
counting savings deposits of over {
billion dollars.
I'm the United States, with a popu.
lation of s7,000,000 tn re are s,700,0
savings accounts, and thus only one
out Of every ten Of the population 1.
a depositor. Again, thu fact that saw.
ings deposits are made by the well Il
do in this country and by the poorer
classes In England is shown by tn,
average amount of the accounts
which is $420 in this country and 81;
in the British postal savings banks
Can any banker dispute the value tt
his business OF having the bulk O
the population trained and educated
to methods of saving7
"A conservative estimate places th,
amount Of money which is withdrawn
from circulation and hid In stockings
stoves and safety deposit vaults a
600,000,000. Does any one doubt tha,
the bulk OF this money would go int
circulation as soon as a system is es,
tablished which makes the savings O.
the small depositor as secure as ID tn,
nation itself? Would this or woult
1t not result in benefit to the banks
III not, then why all this schemin,
and planning OF which we have heard
SO much during the last year-Eow q
get the funds out of the safety aepogi
vaults and into circulation?
"One feature of postal saving.
banks Is certainly overlooked by tn,
interests which oppose them. Thes,
banks when established will reach ev
cry nook and corner OF this country
where now no facilities for saving,
deposits exist. The savings OF tn,
rural community, OF the miner an,
woodsman will get into the genera
circulation in manner which woui,
be impossible except under a system
where every crossroads postoffice Il
savings bank with the guarantee o
the government to back II.
Postal savings banks must aiway
be the place of deposit for the wage
worker and the poorer classes. NJ
inducement should be offered co tn
wealthy to place large amounts i'm tn
custody OF the government. Thu
there should be q limit to the sig
OF individual deposits and when tina
limit is reached interest should cease
Under such system again tn
banks and bankers will profit In tn
end. for the man, woman or child VIII
has saved $3.50 to $1,000 In a posta
savings bank must necessarily an,
some investment ftr that fund, and
large part OF these deposits viii nm
their way into the savings bank
owing TO the attraction OF the highe
| interest offered"
1 "A RMEg~E@..m M..Aau-R-