Rensselaer Semi-Weekly Republican, Volume 41, Number 4, Rensselaer, Jasper County, 22 September 1908 — POSTAL SAVINGS BANKS [ARTICLE]

POSTAL SAVINGS BANKS

Machinery of Cen grass Already Started for Postal Savings ~ Bank Law. A Safe and Sane Flan for the Con* venienee of the People and the Encouragement of Thrift. "We favor the establishment of a postal savings bank system for the convenience of the people and the encouragement of thrift.” This is the declaration of the Republican national platform, and postal savings banks will without doubt be authorized by law and established as a part of our financial system by the action of Congress at Its coming session, which, will be convened in December. indeed, much has already been accomplished towards the enactment of this law. At the last session of Congress a bill was carefully prepared whl&i met with the Approval, of the Postmaster General/ and Wis Reported upon favorably by the Senate Commit-, tee on Poet Offices and Post Roads. This bill Is now on the Senate calendar and can be acted upon as soon as Con-, grem is convened, i.o ;/ The scope of the proposed law 4* set forth in the committee report, which is In part as follows: “■ : . I .. : V. Committee Report. fit The purpose of this bill is to place at the disposal of people of small mean* .the machinery of the Postoifice Department to aid end encourage them sq s*ve thel*- earplugs. The subject of postal savings, banks or depositories is not hew in this country and it may be truly said to be quite, familiar to the pedple of Europe and fne British colonies. I'he propriety of establishing 'pbstal Savings batiks became the subject of discussion in 'England as eafly as 1807. objection to such use of the pdwtoffice faculties urged in this country, iwae vigorously pressed In the long-continued discussion of the subject ha England. * For over fifty years private savings institutions waged bitter opposition to the growing sentiment in favor of postal savings banks, but notwithstanding such opposition in 1861 an act of Parliament was passed entitled “An act to grant additional facilities for depositing small savings with the security of the government for the due repayment thereof.” That the alarm of private institutions was ill founded is amply proven by the recorded fact that the private savings banks increased their capital by more than ten millions of dollars in the first fifteen years following the establishment of postal savings institutions That the postal savings Institutions proved successful is satisfactorily attested by the fact that no backward step has ever been taken In England on this subject and_ by the further fact that in rafiid succession the lead of England was taken by other countries The primary purpose of these Institutions!* to encourage thrift and a saving disposition among the people of amgtr means by- placing at their disposal In every part of the country ready facilities for the depositing of small sums with absolute assurance of repayment on demand with a low rate of Interest on a limited aggregate amount

Postal Savingi Banks Ne*4c«. In certain parts of our country savings Institutions are sufficiently numerous to accommodate the people, but such areas are quite limited, being confined to New England and New York. It Is alleged that by reaaon of the number and location of savings baifka there la one savings account to every two of the population of New England, whereas In all the country outside New England and New York the average la only «tac savings account t® every 157 of the population. 'Faking such figures to be approximately correct and recognizing the fact that the people of all sections of this country are pretty | much the same In habits. Inclinations, and purposes, It must be obvious to the most casual observer that the people of the Sduth, the Middle West, and the West do not save their earnlnga as do those of New England from the mere want of secure places in which deposits may be made. Tq those who feel inclined to believe that the establishment of postal savings depositories will Involve an element of paternalism It seems quite sufficient to suggest that the machinery of the PostolHce Department is now in existence and will continue to exist without diminution of expense whether such depositories are created or not I and that .the establishment of these | depositories for the benefit of the I people will not Involve one farthing of | loss to the Post-Office Department, but : will probably, on the contrary, prove more than self-sustaining. Very slight | computation will clearly demonstrate that the postal savings depositors can [ not burden the Post-Office Department 1 with any additional deficiency.