The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1909-10-15
cuMMlNs ON POSTAL SAVINGS

tai savings bank system in this coun-
try before meeting of the first, Sec
ond and third class postmasters of
Iowa who are now holding their state
convention in Des Moines. He made
the prediction that postal savings
banks will be established in the Unit
ed States and also ventured the as
sertion that the question of how they
are to be established will eventually
come before the people, and the ques-
ton settled by them. 1t is bis opinion
that the question of the instrumental
ity the government shall adopt to per-
feet the system will be the question
at issue and the one to be decided by
the people.
Some argue that the banks and not
the postoffices of the country are the
proper places for the government to
install the branches of the savings
bank system. 1t will not be long be-
fore the monetary commission, Of
which Mr. Aldrich is chairman, makes
| it's report to congress, and it is then,
according to Senator Cummins, the
question as to the proper place of In
stalling the savings banks will come
up before the people.
Senator Cummins reminded his audi
tors that at it's convention in Chicago
in 1908 the Republican party voiced
its sentiment in favor of the postal
savings bank system. He believes it
should keep the pledge made at that
time. The United States is the only
civilized country in the world that has
not established system for postal
savings. The difference between our
financial system and that of other
countries has delayed the establish
ment OF such institutions and their
necessity has not been felt Their
need is not felt now, but the good they
would do is apparent. In this con-
nection Senator Cummins said:
Briefly, the object of the postal
savings system is to encourage thrift
among the people of small incomes.
People of that class look upon banks
as far removed from them. They
seem to be surrounded by an almost
phere of aristocracy and wealth that
makes people feel that banks are in
situations for the rich and that the
wage earning class is not welcome to
make use of them. What people Of
that class need is a place that is not
surrounded by the pomp of financial
influence. All people are at home In
the postoffice, rich and poor alike, and
the postoffice is the place to establish
the savings banks.
Then. too, the losses sustained by
depositors in banks has its influence.
[ To be sure the loss sustained by fail
ure In banking institutions is infinites-
I imal. vet the fact that bank may fail
\ begets suspicion and the working man
will not deposit his money there. He
J either spends it or boards it and as a
/ result of peoples distrust of banks
and the boarding habit More than
7 $500 GOO 600 is out of circulation at
i the present time. In time of hardship
and financial stress, that amount will
double
When I went to Washington last
ii December, l became interested in the
postal savings bank bill that had been
submitted. 1t provided that funds
from different savings be deposited in
4 national banks that were to be desig-
mated as repositories / opposed the
4 scheme on the ground that the com
munity in which the money had been
saved would not have the use of ii
and it would leave them for the
large money. centers in New York and
Chicago
Il offered an amendment to the bill
which provided that the money should
be deposited in banks in the town
where it had been saved, that those
banks should give proper security and
that they should be named as deposit
cries. l did not restrict the depositor
les to national banks. but | included
state and savings banks as we'll
believe that system to be an improve
ment over the one suggested in the
original bill
There is a great field for a man Of
inventive genius in connection witt
the establishment of postal saving.
bank system. The man who can de
, wise a system of conducting the bank,
, will perform a greater service to hi,
country than any warrior who eve
J lived The scheme for conductin,