New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-04
Hays Charges
PrOfiteerino
In Postal Bank

CONTINUED from page onc)
other banks is in direct proportion to
the attention given postal savings and
the number of postal savings de-
positors.
with S161 100000 on deposit last
year from 508,o0o depositors, and with
the law providing that per cent in
terest be paid the government be-
cause of the system, paid less than
12 per cent interest to those de-
posItors and by redepositing at 21a
per cent made a net profit over all IN
81, 900.
Charges Profiteering
This was sheer proiteering. This
n1oney belonged to the depositors The
certlhcates issued unequivocally pledge
z per cent interest and fail to saw any-
thing whatever about no interest being
paid if the deposits are not left
year.
The government is not in the bank
ing business for profit. The govern
ment is IN the. banking business to
facllltate and increase the national
savings and to promote economy and
thrift. The postal savings has not
scratched the surface, Notwithstanding
the magnificent conception of public
duty that inspired it's founding.
POSTAL savings will not compete
with savings banks. We do not want
dt,eposltors from savings banks. But
there Is tremendous boarded wealth
III the country, estimated by many
well informed at billion dollars The
savings banks cannot bring it out. The
postal savings has not yet brought it
out. Nothing can bring it out, but the
falth IN the security of the government
OF the United States and a larger in
terest return on the deposits and the
acqualnting of the holders with our
purpose and their opportunity.
This we hope to do. This money is
needed IN circulation now. If a billion
dollars can be brought out of stockings
and closets and saved from waste and
wild cats it will do incalculable good.
1t will make general bank depositors
and ultimate government bond owners
cut OF the timorous; it will give small
capital a chance for an honest return
the same as large capital; it will fur
nish the tonic to conclude the business
convalescence in the country and will
help make economy and thrift a ma
tlonal trait much needed.
eve believe this can be done. First,
the government must stop profiteering
anu Vic 4utCicSL TdLe SQOulQ De IN
creased from to per cent, with a
c. mpensatory rate charged the banks
where the funds are redeposited The
method of computing the interest
should be reformed so that the depos-
itors shall receive interest on funds
held less than one year Joint and
trust funds should be allowed and thu
youth limit should be removed. Saw
ings should be received at $4,000 in
stead of $500 postoffices. and fourth
class pastmasters should be fairly COM
pensated for handling the business,
The funds should be redeposited in the
local banks where collected and a more
liberal arrangement perfected for de-
pository banks to qualify. And the
system should be reorganized at the
top with an enlarged board of direct
ors, into which the Federal Reserve
Bank may be brought.
"There is lot of business in this
country that is really sick, still stag
gering with the shell-shock of war and
| the debauch of extravaganza, but there
| is good deal more that is merely
malingering. What we need more than
anything else is the common sense OF
courage and confidence. There is, OF
course, the greatest era of expansion
and prosperity ahead that the, world
has ever seen. Every one knows this
and the only question discussed is
when it will start. Well it's time tc
go out and get it. This we propose tc
! help do"