New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-05-24

nunnnnl 49,
Y"HE first international bank, with its count
'XNUSAN less branches all over the world and
G,$0uTSD particularly in the United Sta,es, is pat
fZBUNN1 ronized by people of all ages, regardless
W5OYSSM of sex, language, color; yet 1t is the
AEA%EA most insecure OF all banking institutions.
GytESB Its insecurity is doubly alarming because
it cndangers tens Of millions Of dollars,
mostly in paper money; an aggregate total made up
Of sums often running into hundreds and even thou
sands Of dollars Its funds the boarded savings OF
poor but thrifty people who will not patronize private
savings institutions
This popular and unstable bank may consist of
stocking on the foot OF a New York tenement dweler,
or a corner of a mattress in a Boston fiat hollow
space behind a loose stone in the fireplace OF Name
coast fisherman or a tin at the foot OF marked
tree Louisiana plantation, or pocket IN the
loose lining OF a Georgia negros dapldated trunk, or
au old boot in the camp Of Wisconsin lumbernan, or
much-thumbcd copy Of Lorna Doone in possession OF
Chicago spnstcr of crannics holes or receptaces
u any other sort considered least likely to attract alien
glance with evil intent.
The result has been the elimination OF currency in
founding proportions from circulation. And from
time to time there has been an unfortunate echo IN the
exemption division of the Treasury Department,
where paper money, damaged by fire, mutllated by
explosions chewed to pulp by rats. roed by water
and rust, nodded by damp earth not seldom beyond
rcdcmptve condition. IS sent IN by patrons oil those
individual international banks.
| am referring 10 the S50.0OO,OOO estimated to be
hidden in the United States this very day. which the
nostal savings system has been obliged to refuse to
accept from present and prospective dcposor because
of the restrictions OF the present law which limit the
amount that may be accepted from dcposor TO 500
IN a calendar month and restrict the maximum balance
10 $500 These limitations which were experimental,
have outlivcd their usefulness, and their retention
would seriously impair the intended utility of the ser
vice. They have enabled us, however to estimate the
amount of money kept from circulation. This estimate,
which seems excessive at first substantially correct,
because IL is based upon official reports of the counryS
postmastcrs some of whom have said that more money
has been rejected and driven back hiding than has
been accepted for deposit the inauguration OF the
postal savings system IN January, 1911. Few can
realize the immense amount Of business transacted by
Uncle SAM Banker in those three years (up to the end
of last December with gross total of deposits OF
S972l7 $50 and Withdrawals amounting to S57 400 900
THE greater part not all of that segregated treasure
ought To be in circulation 10 serve the purposes OF
liquid currency IL is money that Will not find its way
into the banks because especially IN the great cities
the average man does not know the officials OF the
banks This is true of torcign-bon wage carriers and
OF many of our own citizens as well.
Because the forcign-born wage workers have learned
To- disrust banks and yet familiar with the postal
savings systems in Europe they seek 20 deposit their
earnings with the United States government They
know that the government will keep faith with them;
but they cannot understand why win safeguard part
OF their savings and all of them. The testimony of
postmasters is almost unanimous on the point that