Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-01-19
POSTAL SAVINGS BANKS
Measure Likely to Meet De-
feat in Congress.
NEEDED where OPPOSED
Arguments of Those Who Are An
tagonizing the Bill.
POSTMASTER GENERALS VIEW
Declares That the Establishment of
the Proposed System Would Be
Source Of National Strength.
POSTMASTER GENERALS VIEW
BY WILLIAM F.. CURTIS


Herald.
Unless some unexpected power or influ-
ence may come up to the help of the
advocates of a postal savings bank sys-
tenn, that measure will be defeated again.
like the parcels post bill, the bill to in
crease the pay of steamships for the
transport alton of United States mail and
other measures of equal Importance which
have been so earnestly and ably urged
upon Congress by the present Post
master General and his predecessors. Con-
gress will appropriate SO, OOO. 900 for battle
ships and torpedo boats without hesita
tation, but not one cent for the en-
couragement of the commerce which
those battleships are intended to protect.
The price of one battleship would build
a fleet of merchant vessels that would
furnish sufficient transportation facilities
for our exporters to Central America and
South America, to China and the Philip
pines, and contribute to the prosperity
of thousands of manufacturers, and mil
lions of farmers whose products are
called for in the other republics of this
continent.
The same successful opposition APP
pears to the parcels post system by which
farmers and other country people can
trade by mail. That comes chiefly from
the country merchant, who is afraid that
customers in his neighborhood will do
their shopping in the cities through the
rural delivery service.
Opposition to Postal Banks.
The opposition to the postal savings
bank bill comes from several sources:
first, narrow minded managers of state
and local banks. who fear they will lose
their depositors; second, from the savings
banks already established. who fear their
depositors will transfer their accounts;
third, from people who think the govern
ment ought not to go into the banking
business: and, finally, from the members
of the currency commission, who believe
that the enactment of a law establish
ing postal savings banks at this time will
interfere with a general reform of the
currency system.
Several senators and members of the
House oppose the bill, because they think
1t is another step toward paternalism;
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
government has done too much already
in that direction and do not want to do
any more.
1t is significant fact in answer 10 the
objections to the measure that the two
states which have the largest number of
savings banks and the largest amount of
deposits are 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 one hundred and fifty of the
population has savings account.
1t is singular fact also that the great
est opposition to the postal savings bill
comes from the states where postal saw
n Cd fhn
posits in the savings banks of New Jer-
sey. Pennsylvania Ohio, Illinois, Mary
land. Iowa and California are added to
those of New England and New York,
posits of the country will be accounted
for. leaving one ~ per cent for the re-
naming thirty-two states. Yet the rep
reSentatives of those states in Congress
are doing nothing to secure savings banks
for their constituents. In those states
the rates of interest are highest, and in
some of them the farming population are
just now enjoying a prosperity which
ought to be shown in the savings BANKS
deposits.
/ noticed statement few days ago
don't know how accurate it is-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 very small proportion of the
amount is drawing interest for the rea-
son that the banks have more money
than they know what to do with. They
cannot get more than per cent for loans
in the east. while there is practically no
demand for loans in Kansas. Therefore
it is impossible for the Kansas banks to
pay interest to their depositors. But IL
that money were deposited in government
postal savings banks it would be equally
safe and would be earning something all
the time.
Merely Agent for Depositors.