Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-02-10

the people which might go into the
postofiices Mr.. Frame. OF Wisconsin
In the bankers convention at Denver
stated that l6 thousand million uoiiars
of indebtedness OF the European ma
tions took care OF the postal savings
of those countries. Now, we hove NJ
indebtedness IN this country into wnic
these savings might 30 what viii tne
government do with thcso deposits ~
Will be Impossible for them to put them
Into government securities for they are
already mostly absorbed as security
for national bank notes i tell you IL
is entering upon a plan that iree
and enlightened nation ought never TO
touch Such vast deposits VIII be-
come the football OF politicians and the
entering wedge 10 deadly paternhlism:
You may ask me. some or yoa' Is
not paternalism good? l Will answer
you by calling your attention To CON
dltions you are all familiar with. Iake
a father who has been successful In
business and who has number OF
sons whom he coddles and nurses along
the paths of business activities, and as
rule how do they compare with the
sons OF men who are poor2 LOOK
around you. Count up the men VINO
have made this state and these great
western states. what they are. and
then consider their lowly birth II IS
little rough to quote H. but l feel that
can accentuate my view b. referring
to what Bob Ingersol said when he
exclaimed: Look at the children OF
the rich. good God, what a penalty
for being richi
Il think those governments govern
best who govern least. and leave the
people to work out their own destiny
and give q full play for all the la'ent
energies that they may possess
think that the business OF governments
Is mainly TO keep the peace, and not
enervatc the people.
DECLARES 1T UNJUST
Besides this, I think 1t Il rank in
justice for the government TO enter the
banking business, when there Is no
necessity for IL, in opposition to the
business of men who have spent their
lives In building up a reputation sor
honesty and fair dealing. With as much
justice might a government enter into
merchandising or manufacturing. or
any other Industry in opposition to Its
own citizens.
Another very grave objection have
to this proposition: The opening OF
channels for postal savings would Gre
ate large number of additional office
holders. which are already too large for
the welfare of the country. and II would
still more firmly intrcnch any party
In power when they once got In power.
for II Is we'll known that all the en-
ployes OF the government, notwith-
standing the law against it, are among
the most active supporters of the po-
litical machines.
The claim Is made that 1t would
bring into use large amount of money
now in the pockets of the people. l am
inclined to doubt that the sum VIII he
as large as many tell US But even II
so. let me ask; Is money in the
pockets OF the people an unmixed evil?
Suppose. during our last panic the peo-
pie had no loose money with them
when the banks cut of their ability to
withdraw their deposits, would not this
condition have accumulated the trouble7
Did not this amount IN the hands of the
people act as a buffer against more
serious consequences?
There would be a great loss to the
people IL they would put their money
into the postal savings instead of In
the ordinary banks with which they
have been so long acquainted for the
reason that the per cent that the
government proposes to pay is only
about one-half of what they now re-
ccive. And admitting that the gov
ernment offered them a greater securi-
ty for their savings the loss would
still be great. for If some banks do
fail and the government does not fail,
the loss by insolvent banks would
only be a fraction of the loss OF inter
est paid 10 the depositor against
government rates. AS an illustration
There is between $4,000 900 and sl0.-
Geo 900 of savings deposits in this city.
on which the depositors receive some
100000 per year. which Is twice the
amount they would receive II these
deposits were in government hands,
and yet as far as l remember no saw
ings bank has ever failed here.
SAVINGS BANKS ARE SOLID.
1T is also said that many people
keep money about them on account of
lack of confidence In the banks, and
their confidence in the government
would draw out these sums. am
very free to say that / do not believe
1t. The history of savings banks of
the last 25 years is such as to inspire.
rather than destroy confidence for the
cases of mismanagemcnt dishonesty.
and failure in regard to savings banks
are few and far between.
Another evil. as 1 view 1t. would
be the tendency. (providing people
prefer to patronze the government
a tendency TO draw money held by
the people In the more remote sections
centerS. II is true, we are promised |
that the bill providing postal savings
VIII provide that these moneys
may be deposited in the local banks
But how can that be ? The government
will demand class of securities for
these deposits which the local banks
would be unable. or find II unproht-
able to provide. AS an illustration: Do
you suppose banks situated say at
Cedar City. or St George, would pur-
chase government bonds for the pur-
pose OF protecting the government for
the savings deposits It might make
with them? This experience has been
had even In the Older countries Some
OF the best English writers have call
ed attention to the injury done TO the
remote sections of England and Ire
land by drawing from them. the
change on which they ordinarily
have done business. And II the opera
tlon OF the law would be like this
in n country as densely settled as
Ireland and England. what would be
the condition in less densely settled
countries like the United States. and
more especially that part OF 1t lying
west of the Missouri rlver7
WHO FOOTS THE BILLs7
Another thing; There will be a con-
siderable additional expense In receiv
Ing, handling and disposing OF these
FUNDS wen, you may say. that is the
governments business If thev want
to incur the expense what business ia
II OF ours? But let me ask? Who ~
the government, and who foots It's
bills?
nf ho Ill