The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-12-24
POSTAL SAVINGS BANKS.

One of the important public questions
of the day relates to the establishment
of postal savings banks. There is
plenty of honest opposition to the move
ment, not only here in Kansas but all
over the country. Considerable of the
opposition which is directed against the
plan. though, is inspired by the selfish
motives of bankers who see in it an
imagined injury to their business. In
congressional circles there appears to
be a disposition to delay action on the
subject until the time comes to consider
the legislation which will be proposed
by the national monetary commission
for the much needed reformation of the
banking and currency laws of the ma
ton. This will not happen until the
next congress and it surely does not
seem advisable to postpone action on
the postal savings bank scheme for so
long and particularly in view of the
fact that the establishment of such
banks can in no way interfere with any
general banking and currency legisla-
ton for the country which may be de-
vised.
President Taft holds to this idea He
expressed his opinion on it in his re-
SCil lIISSSdSS " COHSl CSo- LII
deed, what he had to say on the sub
ject of postal savings banks on that oc-
casion, expresses concisely and clearly
the necessity for the creation of such
banks. A repetition of his words on
this subject ought to be all that should
be necessary to settle this question in
it's favor in the minds of those who
think they are opposed to the postal
banks p'~r and who believe that it will
tend to injure the general banking bust
ness as now carried on. After remark
ing that there is a real necessity for
the establishment of these banks and
that the plan is entirely practicable, the
president said:
1.-The successful party at the last cleo
ton declared in favor of postal savings
banks, and although the proposition
finds opponents in many parts of the
country, am convinced that the people
desire such banks, and am sure that
when the banks are furnished they will
be productive of the utmost good. The
postal savings banks are not consti-
tuted for the purpose of creating COM
petition with other banks. The rate of
interest upon deposits to which they
would be limited would be so small as
to prevent their drawing deposits away
from other banks.
ST believe them to be necessary in or
der to offer a proper inducement to
thrift and saving to great many people
of small means who do not now have
banking facilities. and to whom such
system would offer an opportunity for
the accumulation of capital. They will
furnish satisfactory SUI stitute. basel
on sound principle and actual success
full trial in nearly all the countries OF
the world, for the system of government
guaranty deposits now being adopted
in several western states, which with
Difference to those who advocate it
seems to me to have in it the seeds OF
decentralization to conservative banking
and certain financial disaster.
1.-The question of how the money de-
posted in postal savings banks shall be
invested is not free from difficulty, but
1 believe that a satisfactory provision
for this purpose was inserted as an
amendment to the bill considered by the
senate at it's last session. 1t has been
proposed to delay the consideration of
legislation establishing a postal savings
bank until after the report of the
monetarv commission. This report is
likely to be delayed, and properly SO,
because of the necessity for careful de-
liberation and close investigation. I do
not see why the one should be tied up
vi the other. 1t is understood that
the monetary commission have looked
into the systems of mixing which now
prevail abroad, and have found that by
a control there exercised in respect to
reverses and the rates of exchange by
some central authority panics are
| avoided. 1t is not apparent that a sys-
tenn of postal savings banks would in
any way interfere with a change to
such a system here Certainly in most
of the countries il Europe where con-
troll is thus exercised by a central au-
thority. postal savings banks exist and
are not thought to inconsistent with
| proper financial and banking sys-
| tenn"