i66 THE POPULAR SCIENCE MONTHLY. 



give anything like an absolute security for the funds intrusted to 

 them. There are, moreover, some large sections of the country in 

 which there are no facilities whatever for the safe-keeping of sxu-plus 

 earnings. 



Postal savings-banks could easily be made accessible to all the peo- 

 ple. There is in every town a post-office, generally conveniently situ- 

 ated, open all day, and visited by many of the people. All classes are 

 accustomed to intrust their letters, and perhaps their money or prop- 

 erty, to it. A depository for savings in this office would certainly be 

 accessible to the whole community. A Government guarantee for the 

 money deposited would furnish the absolute security that is needed to 

 encourage the people to intrust their surplus earnings to such savings 

 depositories. 



Whether the Government could conduct such institutions without 

 loss to itself, or injury to private enterprise, or the unsafe enlarge- 

 ment of its functions, is a question in regard to which there is some 

 difference of opinion. Perhaps the greatest difficulty would be that 

 of finding some safe, permanent, and profitable use for the money de- 

 posited. Many hold that, if the Government should only guarantee 

 the repayment of deposits without interest, large numbers of the peo- 

 ])le would gladly place their surplus earnings with it for safe keeping. 

 However this may be, a low rate of interest would add much to the 

 popularity and attractiveness of the arrangement. Two per cent has 

 been suggested as a rate that would be attractive to depositors with- 

 out interfering much with private banking enterprises, provided the 

 sums taken from individual depositors were not too large. It is esti- 

 mated that the cost of management might, for the first few years, 

 reach three fourths of one per cent. It would be much more likely to 

 fall considerably below than go above this limit. The problem before 

 the Government, then, would be to safely invest the deposits at two 

 and three fourths per cent. 



The European nations which have postal savings-banks, with two 

 or three exceptions, have large national debts, which are not likely to 

 be paid off for centuries to come. The investment of small sums by 

 large numbers of the people in Government securities greatly increases 

 the loyalty of the masses and their interest in governmental affairs. 

 The Government thus borrows at a low rate, and an incidental result 

 of its so doing is to render its citizens more thrifty, independent, self- 

 respecting, and loyal. It is certainly an open question whether the 

 policy of rapidly paying off our national debt, w^hen it could be re- 

 funded at so low a rate, is wise. Apart from the necessities of the 

 national banking system, there is a great deal to be said in favor of 

 allowing the principal to remain for an indefinite period when the 

 masses of our laboring-men and poorer classes would gladly take the 

 greater part of the loan at two and three fourths per cent, or perhaps 

 even at a lower rate, and be greatly benefited by so doing. The adoption 



