New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-01-11
POSTAL SAVINGS BANKS
THE PEOPLES SIDE.
Opinions Expressed IN Tribume's
Symposium Com,bated IN Senate.

On Tuesday, January 8, The Tribune printed q
symposium OF the views of bank commissioners,
insurance commissioners. controllers and bank ex-
arniners representing fifteen states on the pro-
| posed establishment of postal savings banks Ap-
pearing just before the postal savings bank bill
taken UP In the Senate for discussion, these
views in which a third OF the states Of the Union
represented, attracted considerable attention
| among legislators at Washington. Senator Carter.
who is in charge Of the BILL made g long state
ment combating the objections raised by the state
oficials in their replies to The Trhunes series of
| questions. Several amendments have been offered
with the intention Of meeting some OF the ohjec-
tons.
| 1t Will be recalled that only one Of the officials
quoted announced himself distinctly In favor
| of the postal banks So far could be gathered
from the replies. there was practically no popular
demand, the banks being opposed and the mer-
chants either Indifferent in sympathy with the
| bankers. It the belief of all who answered
the question that the present banking facilities in
| the different states were adequate TO meet the
needs of the public The replies indicated that
/ the banks were afraid that the establishment OF
postal savings bank with the national banks
| depostaries would result In diminution OF the
deposits Of the state banks and an ultimate move
Of the circulating medium 70 the large nnan-
| cial centres.
THE QUESTIONS AND ANSWERS.
| The questions which The Tribune sent to the
banking representatives OF the different states
follows: @ Is there popular demand in
your state for postal savings banks? CD Are the
| banks favorable? Are the merchants favorable?
/ CD What is the nature Of the opposition, II any?
| "a What would be the effect (al existing saw
ings banks; Ob) general banks and trust COM
panies? % How many savings banks are there in
your state, and what their deposits7 90 Do the
savings banks furnish adequate facilities for the
needs Of the people? % In the absence OF savings
banks. to what extent do general banks and trust
companies mako up for this deficiency % Please
give any opinions which you may TO express
on any phase Of the question not covered by the
inquiries.
| Since the publication Of the symposium The Trib-
une has received replies to its questions from
officials of other states. Their opinions similar
! to those already expressed. They printed be-
low. and followed by letter the subject
addressed to The Tribune by well known New
York man.
! LOUISIANA-w. L. Young State Bank Exam
iner. ID No; CD no; CD from established banks
| % answer; CD most Of the large established
banks operate savings departments. not definitely
separated and classified; 60 yes; Cd no answer I;
| (S) answer.
| OHIO-B. B. Seymour. Superintendent of Banks.
! % No; CD think neither favorable; CD 1t is
thought local funds would be transferred TO large
| centres and create higher local rates for money
"a it Is thought their deposits would be reduced;
CD savings and trust and commercial banks in this
state are usually combined; (6) apparently so; 90
| no answer; CD answer.
WEST VIRGINIA-Samue1 Y. Matthews, Com
missioner of Banking. Cd There is no sentiment
favorng postal savings banks In this state; almost
all of the banks have sayings departments. which
seem to cover all demands: CD the banks and mer-
chants apparently disinterested; the matter is
| discussed very little; CD organized opposition
| (4) in my opinion It would be harmful: (5) only
| one mutual savings bank with $1,111000 deposits
| CD the banks do through their savings depart
ments; % all that is required; go no answer
THE OTHER SIDE
! To the Editor of The Tribune:
Sir: The article In your issue Of yesterday re-
| garding the postal savings banks and the general
feeling thereto portrayed in the letters quoted
does not, II appears to me, entirely cover the
ground of this important subject. In the replies
to your questions does not find consideration
| of the subject beyond the interests of the local
banks, the insurance companies and the established
! savings institutions.
It is well known that these forces have for the
last eighteen or twenty years been the opponents
| of the postal savings banks each time that
| recommendation Cor their establishment has been
made. and 1t likely that they will again pre-
vent the realization Of this great public utility.
Your first question rs there a popular demand
in your state?' is generally answered in the mega
! tive If any has given himself the trouble to
consult the farming people in rural districts
| he has found them entirely ignorant of what a
| government postal savings bank is. how the
| same could be useful to them.
| Therefore the very class that would be benefited,
| and has been in all countries whore they exist.
is unable to formulate its demand. The replies you
! quote principally from bank examiners or
|
! allied to the systems which support them. and
whose opinions should not be taken conclusive
The first usefulness OF the postal savings bank is
| the great lesson to people of thrift. BY pac-
! ing at their very doors the means of outstanding
| in security and with modest return of interest
! their economies opportunity is given them
| which they should have long since been blessed
with.
Any one who has observed the condition upon
this subject prevailing among the country people
of or mi have hneo
| profoundly impressed with the eagerness with
| which they avail themselves of these banks Every
village or country postoffice is sbranch of the
governmental savings bank where very small sums
can be deposited, that the children of farmers
and laborers have their accounts at a very
carly age. Not only does this teach economy to
the people, but it allies them from childhood more
closely to the interests of their country and knits
their personal welfare to that of the nation
1t is these quiet moral factors which should pre-
vail over local interests and the perversion of
fiduciary powers which ranged against this bill
The alarm of the country banks is to degree
Sroundless as their accounts of local trades
and farmers of consequence who do not need
this class of depositary. AS to the fear that il
would interrupt loans upon mortgages covering
adjacent property and farm lands. this again is
without serious foundation. as. the being
much greater upon their investments than that
which the government would pay, very little II
any, would be directed out of that channel
1t is observed that the banks object 10 having the
government competitor To such degree
competition would arise tire inevitable result would
be the adjustment of each TO the other, the
whose interests should have at heart prior
those of individuals private institutions. The
field, as a sole means to handle the economies of
our people, has been alone occupied sufficiently long
by local banking and insurance interests
justment should be made whereby rural popu-
lation shall longer be deprived of this recog-