Evening star., 1921-07-16
Editorial Digest
Mr.. Hays Gets After the Sock.

General ito put the stocking savings
bank out Of business by vitalizing
and expanding the postal savings
bank system is warmly supported by
the press. Most editorial writer's
agree with the Minneapolis Tribune
(republican) that SO far the postal
bank has not made good" but that.
they explain. is due to the low in
| terest rate and other faults OF detail
which Mr.. Hays now proposes to cor
rect. not to anything inherently
wrong in the system. With q higher
tiles. the press as whole believes
the postal savings bank wilR 60 a
| long way toward releasing boarded
money for general use without in any
way intruding on private banking en-
! terprise. Indeed. many writer's feel
that. properly developed. the postal
savings banks will be OF great beneft
to private concerns by encouraging
thrift and In the long run serving as
feeders" for the large banks.
one OF the surprises and disap-
indianapolis Star undependent re-
publican) Is the extent to which
postal savings banks have failed TO
get the business that should be their
own" The Providence Journal Un-
1S asteeo that the system
Springfield Union (republican) insists
that 'ft Is entitled to a fair trial be-
fore being condemned as a futile ex-
pertinent. and. in its Judgment, the
postmaster aS;,t .,. General "is unquestion-
failure on the per cent Interest rate.
How many persons. particularly Of
the immigrant classes" the Rocky
Mountain News (Denver) Cndepend-
emu asks, are keeping their saw
nnssa, lnss IN m Il their stockings" because
and because the rate Is not very at
tractive?" Mr.. Hays estimate, which
the Boston Transcript (independent
republican, states is based on that
OF expert bankers. is that at least
Tne tdIe o,iaon s dollars Is being boarded.
That "a better postal savings sys-
tem would tend to bring this money
out and put 1t into the banks" the
charleston (W. Va.) Mail (inde-
pendent republican, is quite certain"
(republican) feels that the estimated
sum Is so great as to be worth the
concessions" suggested by the Post
master General and the labor of re-
organising the system"
The Fremont (Nebraska) Tribune
(republican) accounts for the extent
OF money boarding by the fact that
some people fear to intrust their
savings to the care of others and to
the unusual number Of recent bank
failures. but. it adds. TT is rare in
have confidence in the safety and
financial integrity Of the United
states government" However, as the
Cincinnati Enquirer (democratic) ex-
presses it. while faith in the gov
ernments guaranty Of security" may
succeed in attracting money where
private banks have failed to do So
simple justice" the Chicago News
independently believes, requires that
depositors SHOULD receive q fair rate
OF interest" from the government for
the money brought out of hiding
places.
Hoarding, the Cleveland Plain
Dealer independent democratic) de-
clares. "is q matter of general con-
Germ. eern;" and III our our 81 savings a, systems
| need looking into" and the Brook
lyn Eagle Independent democratic)
commends the courage" with which
| the Postmaster General has tackled
real scandal in the government
treatment Of depositors in postal saw
ings banks" through which It has
| been able to "profiteer" on the low
! interest rate. The New York Mail
Independently also protests against
| the "ridicuously low price" which
l
| ings deposits. which the Mail thinks
| amounts in practice to "mulcting" the
| most ignorant classes"
Bankers should. by this time, have
| overcome their fear Of the postal
| savings bank. the Portland Oregonian
! independent republican, thinks.
| since at has not drawn away busi-
| ness from private banks. but has
lured from hiding places and ulti-
| mate1y placed in private banks the
| money that would not otherwise have
| reached any bank" thus proving "a
| valuable feeder" for the private con-
| Germs.
| AS the New York Times Nndepen-
dent democratic) interprets Mr.. Hays
| proposal. "the plan is rather to Gre
ate demand than to meet a de-
mand," since the lack of interest In
the system has resulted in closing
many postofice banks. and, Il holds.
| the habits Of the people must be
| changed before much more than an
installment Of the good work can be
| achieved"
The very fact Of "the estimated
billion Of boarded and idle money"
! suggests to the Syracuse Herald Cn-
dependent) that "the cautious own
| ers prefer no interest at all to the
per cent offered by the governments
| savings banks" and the Herald
| doubts that they will be Influenced
''by the added inducement Of l per
cent