The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1910-07-30
POSTAL SAVINGS BANKS.
Propositions Not Very Attractive So
Far
Boston Transcript.

| boStOn transcript
1t is too early to attempt to fore
cast the result of the postal savings
bank experiment on which the nation
has embarked, but it's reception by
| postmasters and financial institutions
is not enthusiastic. Washington
| dispatch say that thus far less than
30 banks had made application for
deposits, while about the same num-
Der of postmasters have requested
that their offices be designated as de-
positaries. If this indifference to the
| postal banks is Symptomatic of the
feelings of the officials and institu-
| tions upon which they are dependent
for their success, the cause is not far
to seek. To neither does the law Of
| Ter very attractive proposition.
| Banks which accept the deposits must
pay the government 1-2 interest
thereon, and must give such securi-
| ties in pledge as the board of trustees
| may approve. All securities accepted
must be those supported by the tax
ing power" In individual banks hap
pen to have such securities in stock
they may find it worth while, espe-
cially to extend their local popularity,
to take the postal deposits. On the
other hand, to purchase public bonds
commanding considerable premium,
to gain deposits on which interest must
be paid, would be an expensive way
of getting business whose profits at
the best must be exceedingly close.
The law limits extra compensation
to postmasters to those of the fourth
class. They are entitled to receive
for their services in transacting the
savings business an allowance which
shall not exceed one-fourth of per
centum on the average sum upon
which interest Is paid each calendar
year." To the postmasters Of very
small communities this extra COM
pensation" may amount to little in
comparison with the trouble and la
Dor involved. AS they generally man.
age stores in connection with their
offices the value Of the banking annex
may lie in its possibilities Of "toaling
In trade" The presidential" post
masters must throw in" bank man.
agement with their regular duties
without increase of salary. 1t Is in
their days work.
The board Of trustees in charge of
the management of the postal saw
ings banks which consists Of the Sec
retary Of the treasury, the postmas-
ter general and the attorney general
is engaged in working out plans for
beginning operations. 1t has not got
far as yet, and has a pretty delicate
task ahead, since to it is committed
the discretion of designating what Of
fees shall be designated as deposi-
taries. The house very wisely re-
fused to make every postoffice a saw
1t may be months before a test can
be had Of the ability of the system to
answer the expectations Of it's pro-
ponents. We shall then know whether
postal savings banks fill a long-felt
want, or whether they are belated
experiments in paternalism involving
far more expense and supervision
than they yield practical results to
treasury or people. Particularly in
teresting will be the competition of
the postal banks with the long estab-
lished institutions Of savings in large
places. 1t is already noticeable that
popular interest in the project in the
east is languid. Here in Massachu-
setts there are only two large towns
whose postmaters have applied for the
establishment of depositaries. These
are Gardner and Amesbury, indus
trial communities, presumably with
considerable foreign elements in their
populations. Among foreigners there
is said to be strong prepossession in
favor Of government guarantee, the
existence Of which was frequently cit
ed as an argument for the passage Of
the law creating postal savings banks.
Prof. Goodwin will be the guest
nf 90, e.