The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-03-17
POSTAL SAVINGS
WOULDHURT BANK.
Bankers Are Outspoken in op-
position to Administration
Bill.
NO CHANCE FOR BUSINESS
Witness Declares Government
Would Moaopolizc Deposits
at Low Interest.
NO CHANCE FOR BUSINESS
Witness Declares Government

Washington. D. c.. March 16.-Oppo.
sltton to postal savings banks was
voiced to-day before the House Com
naittee on Post-Ofices and Post Roads
by representatives OF the American
Bankers Association. Not only did the
speakers oppose the postal savings
Senate and is now before the House,
but they had no hesitation in saying
that they opposed the principle OF the
governments going into the banking
business.
e. r. Guerney. vice.president Of the
First National Bank Of Fremont, Neb.,
and a member OF the executive council
OF the Bankers Association. said that
the establishment OF postal savings
Withdrawals OF large amounts OF money
from the banks OF that State, seriously
upsetting business In general. There
was no general demand, he thought.
and certainly there was no need for
it. The national and State banks OF
Nebraska were able. he said. to take
care OF all the banking business there.
and are doing it now.
The matter Of the security and safe,
~ OF the deposits greatly outWelghed
the consideration OF the Interest paid.
said MT. Quincy. and II the government
established the postal banks and put
cards In the windows Of post-ofnces
offering. 2 per cent. interest the depos:
its would come to them, regardless OF
tho fact that the State and national
banks might be Offering or per
cent. interest Just across the street.
Security was what the people demand
Led, no said.
Banks Cannot Compete.
THE banks are only relatively So e, :
said Mr.. Guerney but the government
IL l1Snt1lf RfSr f491 l1f,
power OF taxation to back It up. Tor
that reason the banks cam never com.
pete with.the postal savings benks. no
naatsor what rate Of interest Is offered.
post,othce might redepos!t the spostal
savings with the local bank, t no lat
ter IS injured because 1t is deprived
OF the business OF great number OF
Further. the postal sevings bar.ls
deposits would. In O. great measure,
come from the banks in the first place.
The withdrawal OF these dep osits from
the banks would cause the latter to
cal! some OF their loans, pinchink q ebt-
ors and generally causing q disturb
ance OF the business community
Mr., Guerney was closely questioned
BY membars of the committee about
tho banking business Of his State. He
ran for benevolent purposes but We're
managed By selfish mon. who were
anxious to secure deposits, make loans
and make money"
In Nebraska was 10 per cent, above
which amount would be usury.
5l53 Get All They Can. s
And It has gotten SO that we hard
said Mr.: Guerncy, guileless1y. while the
committee laughed. 1--WE generally
charge IS per cent. TO the farmer on
his land, per cont to the merchant
and as to the small borrower we
charge from per cent, on up to what
ever he Will st andn A ", IS sE a
Mr.. gGurneY, said there were but half
z. dozen savings hanks In Nebraska,
such, institutions In the matter. OF
oheok1nE accounts and Of security tor
loans. He added, however, that most
Inas,onal banks there had savings de-
the liberal provisions Of the national