The Richmond Virginian. (Richmond, Va.) 1910-1920, 1910-06-23
BANKERS DISCUSS
POSTAL SAVINGS
Oliver j. Sands Sees ManyAd~
vantages in Government
Enterprise
MORE MONEY WILL BE
PUT IN CIRCULATION
w. IL. Habliston Believes Ih9e
Uncle Sans Scheme is TOD
Paternalistic to be u
Practical.

Opinion among Richmond bank48Q
as to postal savings banks appeArese
be somewhat dtvioed. An . ruiAs h9Mes
ever, the bankers admit that thA M4N5
government enterprise whcfch recen
received the approval Of congress MMMS
a NUMBER Of attractive features fnASE
will add materially To the welfaxe U1
banks at large. #s
MIR. Oliver J. Sands, president Of tnN@
American National bank. - an1nm
those who see many advantages n te Nc
proposition. WIS., rs
lit il undoubtedly . fact /. 10 so1
Thursday, that much momny
never reaches the banks VAN
pr.t .ght into circulation and ueo ~ In
result of the postal savings baM
This will be particularly tina Co. IN
rural districts where many uAx4o4
Etili hoard their savings a4&M1
through distrust Of banks on eemn3
principles or because they hAvo u1x~
been educated UP to tho tde4 o
patfontzing banks with their oavfm9Ms3
An instance of this kind was noted t1Io
other day when farmer living IN t114
vicinity OF Richmond came into OF
bank and deposited 5000 In ecl4s
which his wife. mho died recently H.
boarded in their home for many yeaxmz
without his knowledge. She had mAdo
the money from sale Of eggs and but
ter but had scrupulously Kept L.
boarding place secret
Good Security Required.
One of the results OF the govexM
ment enterprise continued Mr..
Sands. will be the encouragement IL
the purchase of State ana municipak
bonds by banks used as Repositories
for postal savings These banks must
furnish gilt edge security to the Gov-
eminent and it Is likely that honds
OF this nature will be most accep-
table. Tho government will pay de-
positors two per cent. and the hMnk9s
handling deposits will pay the govGrzls#
ment two and a half per cent Tor MN
of the money. The rwo Der
rate. II Is true. In not equal ~
paid by banks As general rule
II Will doubtless attract many
positors that otl,erv ise never DAtkQG
ranks at all Furthermore. I b61t
the postal savings institution win a4ExS
as safeguard In nmes OF panic t.
the simple reason that persons would
not withdraw thoir deposits in such
times as quicL.S.f as they nave done g.
the past. IL they know that the g0vcFx1~
ment Is security. sss
Banks to Get Deposits.
ANY bank" Mr. Sands expiatne6.s
can be made a depository N IL n t1Eos
declared Intention OF the goyernrnoq4s
to play no favorites in selecting hAmhM
for repositories. The money VIII nr1k
/ be deposited at postofnces, Just ~ LII
is at ordinary savings deposit hnn1HE
/ and it will then be transferred GkI
some bank to be put in general EsNKS
culation. The enterprise will ento4N
considerably more labor upon pD9eaE
authorities but this phase or the Hna4Ny
ter will probably be worked out sattoez
! factorily u,hen the law - put INT
actual operation
Mr. w. NJ. Habliston. president IN
the National Bank OF Virginia, ID onGs
Of the Richmond bankers that 40 noes
| look with q great Zeal Of favor upuek
the postal bank Idea.
| Theoretically" said Mr.. Hahllaton.
1.-The idea is all right but dou6e
whether It will prove . good thtnG|
practically In addition. It looks tDo#
much like another one Of th640@
| paternalistic schemes Of the goyo44as
ment However, 1t remains to b noo
how the system will work and
alone will tell" s8
! Uncle Sam Protecting Himoe1k a8
Another banker, who preferred A94s
being quoted. said that It appeare6& &
him as III the government waa m4xn1$
seeking to bulwark itself In times q n
extreme emergency by means okS 4I
enormous security II could fuxntG
NTH the postal savings banks he11
| 1t. and he thought II was thinking 15&S&
tie of the individual deposftor Ii ~ "
ting the scheme into effect sas5S
I This Ia shown, he said, s'ny II
fact only two per cent. II to b IN
on deposits" & 81
Still another banker, who ifxeu
stunned the liinsllxht Of publin1
saw politisc in III = scheme. Altl1Ou15
II was hard to believe, he said, thaf ~
man Of President Taft's sound 1u1 n
ment would endorse such d prCpo ny
| ton 30 unqualifiedly as he haas
| politics was the chief motive hA1SX
passage OF the postal bank bill,