The Detroit times., 1909-01-21
POSTAL SAVINGS BILL
WILL BE DEFEATED
,contisued from Page one,


actment of law establishing postal
savings banks at this time will inter
fere with a general reform OF the cur
rency system.
Opposition Explained.
Several senators and members or
the house oppose the bill because they
think ID Is another step toward pater-
nalism; they argue that savings banks
which do not issue currency should
be authorized and regulated by the
states, Others are opposed To any
innovations In the present banking
system. They think the federal gov
eminent has done too much already
In that direction, and do not want to
do any more.
II Is significant fact in answer to
the objections 10 the measure that tile
two states which have the largest num-
Der OF savings banks and the largest
amount Of deposits Massachusetts
and New York-at the same time have
the largest number OF national and
state banks. In New England every
other inhabitant has savings account.
while west of the New York and
Pennsylvania line only about one in
every $50 OF the population has a
savings account.
II Is singular fact also that the
greatest opposition 10 the postal
savings bill comes from the states
where postal savings banks are most
needed. IL the deposits In the savings
banks OF New Jersey, Pennsylvania,
Ohio, Illinois. Maryland, Iowa and
California are added to those of New
England and New York more than rs
per cent of the entire deposits OF the
country will be accounted for. leaving
only lh per cent for the remaining
81 states. Yet the representatives Of
those states in congress are doing
nothing to secure savings banks for
their constituents. In those states the
rate of interest Is highest and in some
OF them the farming population are
just now enjoying a prosperity which
ought 10 be shown In the savings
banks deposits.
Some person made a statement a
few days ago that the deposits In the
banks of Kansas today amount to $3.50
for every inhabitant in that state
men, women and children-and that n
drawing interest for the reason that
the banks have more money than they
know what 10 do with They cannot
get more than per cent for loans in
the east. while there is practically no
demand for loans in Kansas There
fore it is impossible for the Kansas
banks 10 pay interest to their deposl-
tors. But If that money were depos-
tied in government postal savings
banks IL would be equally safe and
would be earning something all the
time.
In discussing this subject the other
day Postmaster-Gencral Meyer said:
The postal savings banks in foreign
countries transfer the savings Of a dis
trct TO the capital or central office,
where the money is invested In the
public debt. but under the plan pro-
posed for the United States the post
office department merely acts as an
agent TO deposit the money in the ma
tional banks in the districts where il
is brought TO the postofices. Thus the
money will he kept in the localities
where il belongs. source of advan
tage 10 capital and labor In those COM
munites.
"The national banks receiving the
deposits are TO pay the government a
rate OF interest not less than pa per
cent. The government will pay per
cent to the depositor in the postal
savings bank. The experience OF Eng
land has shown that one-quarter Of
per cent is sufficient TO pay all Incl
dental expenses and still leave a mar
gin of profit.
The British postal savings banks
were established in 1861 For the last
five years there has been deficiency
due TO the reduction in the rate of he
terest on consols, in which the postal
savings are invested, to 212 per cent,
but for the entire period up TO 1908 the
net gain has been about $5.500,000