The San Francisco call., 1909-06-03
Letters From the People
POSTAL SAVINGS BANKS


Editor Call: BY courtesy OF ths
state bankers convention I listened
this morning to Lowell Whites opin-
ions as to the proposed installation
In the United states OF postal savings
banks. By the, applause which fol-
lowed the reading Of his paper. his
views obviously were adopted by the
convention, which also passed mo-
tion for printing the document and
circulating it widely I assume. there
fore. 1 am Justified in believing not
only that White voiced the sentiments
of vested interest in the matter, but
also that his argument comprised
about all that can be said against the
institution OF postal savings banks.
If so. this opposition must be sadly
lacking in logical foundation Far too
many words were devoted to the when
your case Is bad abuse the other side
style OF arguing. There was too OBJ
,vious an endeavOr to belittle the advO-
Gates OF such banks by topiOftcally
relegating them to the ranks OF half
baked" theorists
This reproach, of course, in face or
the hard facts as to postal savings
banks, proved by many years Euro
pean experience. might far more Justly
be lung at those who would oppose
their half baked" theories to the tn
stitution of such well accredited utili-
100000 deposited in such banks. has
enormously increased her nongOvern-
mental banking facilities.
Nearly all his ammunition was OF
the same recoiling kind. For exam
pie, he stated that one OF the chiet
classes intended to be benefited by
these banks was the class OF foreign
immi grants. These, however. would
not, he said. make use OF them be-
cause they were so distrustful OF gov
ernment institutions in their native
land He entirely overlooked the fact
that many OF them come here for the
explicit reason that they have faith IN
the American government. and even
belisd his half baked theory, notabiN,
by investing during the late panic ~
post0f1ce orders, seeing there were no
postal banks.
He denied that these banks would
be useful in outlying country districts
because the pioneer never had a cent
to spare to deposit in any bank This
in the face OF the millions had al
most said billions OF dollars-annuauy
wrested from the soil BY lumbermsn.
miners and ranchmen living dozens oe
miles from either savings bank or ex-
press office. he depIOred the terr4bls
need Of enlarged house room and IN
creased clerical stan that would fol-
low so vast an addition TO the nations
business. This was as pathetic as thu
appeal OF the British lord in the house
of commons who antagonized Rowland
Hills penny postage scheme because. ft
would induce such a deluge or letters
as should burst open the walls 81
the postoffices." Probably when Mr.
Whites business warrants larger bujl1-
inss and a more numerous star ha
hardly deems il an occa sion for wall
ing Jeremiadsr Of coming failure and
mourning and woe.
We ought, Mr.. White further con
sidered. 10 be satisfied with present
arrangements because failures were
infrequent and losses infnitesimal.'
Mr.. White probably has figures TO sub
stantiate this statement. but I imagine
it viii prove but cold comfort to the
many who lost the major portion OF
their Ife's earnings in some 1907 panic
stricken bank
Another bugaboo shaken to scare the
sorely beguiled advocates OF postal
savings banks was that their advent
would destroy the equilibrium OF IN
vestment, half in mortgages and hair
in readily convertible securities. at
present customary in savings banks
because, in panies. he averred. people
would withdraw their deposits from
ordinary savings banks to place them
in postal banks He omitted TO say
how much better this would be than
hiding those same amounts IN old
stockings or safe deposit vaults. He
omitted TO say that moneys so handed
to the government could be at once
restored to circulation and be the very
best means Of checking further panics.
These are fair examples. as cogent
as any, OF Mr.. Whites arguments. He
further indicted the advocates OF postal
savings banks. who, by the way. he
admitted were the majority or the
people. as aiders and abetters OF FRA
ternalism" or "paternalism."
AT risk OF being classed as an awful
example" Of either. I yet venture 10
subscribe myself as. Mr.. Editor. yours
truly.
EDWARD PERWICK. per NJ.
President Postal Progress League OF
California