The Mena weekly star., 1910-02-24

TT- swers. problems that are more or less Pei, plexing to the average reader, Who has s s,t, ,lGs the opportunity, time or disposllioh to Isi stue3 them out Below is snch study s sha v, obove Savings Banks, as taken rom lhe "p'NO named paper.
 What is the proposed postal sav-
 ings bank?
 Under the plan now contemplated every postoffice that issues money orders would receive deposits on which interest would be paid at the rate of 2 per cent. Every such post office would become virtually a gov ernment savings bank.
 Why should the government ope-
 rate savings banks?
 The chief reasons are that postal savings bank system would afford depositors absolute security; would consequently attract and make avail able for circulation money now boarded: would encourage thrift and would accommodate communl- ties. especially in the West. where savings institutions now are scanty.
 Is there reason to believe that
 money is now kept out Of trade chan
 nels because of lack of confidence
 in banks?
 It is common knowledge that many persons of small means hoard their money because of distrust. The Postoffice Department reported two years ago that in one year imml. grants had sent to Europe by postal money orders 72 million dollars, and that a large percentage of this had been traced to the postal savings banks of European countries, Much of this money had been sent out of the country because the immigrants had confidence in government banks and distrusted privately owned banks.
 How would the postal savings
 bank system encourage thrift?
 It would prove tremendous ad yertisement of the savings idea. A government savings bank would be widely talked about, and persons who never think now of maintaining a bank account would be led to con sider the advisability of saving part of their income,
 Do sufficient savings bank facili-
 ties exist if people desired to use
 them?
 In introducing the Postal Savings Bank bill, Senator Carter said that while the populous parts of the coun- try were well provided with sound and well managed savings banks, there are whole congressional dis tricts in some states without saw ings institution of any kind" What is the advantage of provid- ing absolute security to a savings bank by means of government back ing2
 The postal savings bank would not be expected to compete with com mercial banks or with savings banks patronized by persons more or less accustomed to business methods. But there are many persons of small means who feel that they dare take no risk whatever with their savings. To such persons postal savings bank would be an inestimable comfort.
 How could the government get de- posits while paying only per cent | interest in competition with banks | paying or Ter cent? The government would not be in competition with such banks. Ii would get deposits in general only from persons who valued the abso- lute safety of their money with low interest over protection that busi- ness men regard as ample with high. CT interest. The great bulk of de posits it would expect from person; who do not deposit now in any bank
 What would the government dc with this money?
 That has been one of the most difficult features of the bill to work out. It is provided in the bill now pending in the senate that the money be redeposited in solvent banks ir the neighborhood of each postofiice These deposits are to be secured by indemnity bonds or collateral ap. proved by the Federal trustees, and they are to draw interest at the rate of not less than ? IA per cent. This extra 1-4 per cent is to pay the ex- penses of conducting the postal sav- ings banks.
 What objections do bankers raise
 to the proposed postal savings bank system?
 They insist that private banks have performed and are performing a great service in the upbuilding of the country and that the govern ment ought not to enter a field which is now being covered by pri- vate enterprise. They urge further that for the government to handle savings accounts merely to deposit the money in private banks is to add a needless expense and really to lay tax on the country. The first ar gument, of course, means that the bankers have some apprehension that postal savings banks will compete to a certain extent for their business.
 What is the attitude of the politi-
 cal parties on a postal sayings
 bank?
 The national Democratic platform declares for such a bank if the guaranteed bank cannot be secured" <" The Renublican platforrn favora