that general control of the entire National bank system shall be in the hands of seven men, three of the seven being the Secretary of the Treasury, the Comptroller of the Currency, and the Secretary of Agriculture. The other four members are to be chosen by the President of the United States, with the advice and consent of the Senate. It is mandatory upon the President that at least one of his four appointees shall be an experienced banker.

Under the Aldrich or Monetary Bill of 1911 the entire membership of this Federal Reserve Board would have been chosen by the bankers themselves.

Here, then, is the whole trouble. The case is that of private control versus Government control. To ask that the bankers shall select the Federal Reserve Board is like asking that the railways shall choose the Inter-State Commerce Commission. It is perhaps not unnatural that the bankers should be reluctant to let the control pass out of their hands; but is it quite fair for them to claim that what is proposed is to substitute "political control for business control?

If the Federal Reserve Board, appointed by the President, with the advice and consent of the Senate, is "political," then the InterState Commerce Commission is “political and the Supreme Court is " political."

If the American people can trust the

President to choose their Supreme Court for them, the bankers can certainly trust him to choose the Federal Reserve Board. A President who would prostitute the Federal Reserve Board to his own base political and partisan advantage would endeavor to so prostitute the Supreme Court and would deserve to be impeached.

No political, social, financial, or industrial system was ever devised without its most important element being confidence in human honor. If the American system ever reaches a point where the President cannot be trusted, in the full light of publicity and with the supervision of the United States Senate, to appoint our Federal judges, our inter-State commerce commissions, and our bank supervisors, it will be time to abandon that system and to adopt some form of benevolent despotism.

Much of the banking opposition is not based seriously on the two per cent bond, on the amount of reserve required by law, or upon the rate of discount. Let us divest our minds of everything that may confuse the issue.

The issue is between private regulation by a group of men elected in a directors' room, and public regulation by a group of men in regard to whose choice the entire country has a voice after the fullest publicity and discussion.

Last week The Outlook sent the following telegram to each of the Governors of the forty-nine States:

Will you kindly ask your superintendent of banking or some other appropriate officer to inform us by telegram at our expense whether deposits in private savings banks in your State have increased or decreased since the establishment of postal savings banks? Our theory is that the postal savings bank has stimulated thrift in all directions.

Up to the time of going to press telegraphic responses had been received from thirtyseven States. Some of these responses, as, for example, those from Mr. Pfeiffer, State Bank Commissioner of Colorado, and Mr. E. H. Doyle, Bank Commissioner of Michigan, Governor Haines of Maine, and Governor Colquitt of Texas, definitely say that the postal savings bank has increased the busi

ness of the ordinary savings bank. It is quite natural that most of the replies, however, since they come from State officers, should contain no definite expression of opinion. But the figures in every instance, as the reader will see, demonstrate conclusively that the postal savings bank has not affected other savings institutions unfavorably, and in almost every instance the statistics show beyond the shadow of doubt that the effect of the postal savings bank on the private banks and the State savings banks has been advantageous. We believe that there is in all this a striking and useful lesson in considering the Currency Bill now before Congress, and this lesson we have pointed out in the previous article. We think our readers will be interested in the replies, which are given in full. It should be borne in mind that the postal

savings bank was inaugurated on January 1, 1911. The Third Assistant PostmasterGeneral informs us that the last audited figures show the total amount of postal savings deposits to be $32,173,354.

ALABAMA

Montgomery, Alabama, July 31, 1913.

The Outlook, New York:

Answering your telegram to the Governor, savings deposits in all State banks of Alabama have increased from $6,059,000 to $9,007,000 since postal savings banks were established. A. E. WALKER, Superintendent of Banks.

ARIZONA

Phoenix, Arizona, July 30, 1913.

The Outlook Magazine, New York:

Answering inquiry addressed to Governor, total bank deposits have increased twenty per cent during last twelve months; savings deposits proportionately. To work up definite comparative statement would require some time and perhaps some correspondence. For your immediate information the general statement might be made, subject to verification, that in communities composed of Americans the postal deposits average only about one per cent of total; in mining communities, composed largely of foreign-born population, percentage of postal savings is much larger. J. C. CALLAGHAN, State Bank Comptroller.

ARKANSAS

Little Rock, Arkansas, July 31, 1913. The Outlook, New York:

Your message of the 30th to the Governor has been referred to me for reply. In my opinion, the deposits in savings banks are I believe the greater increasing each year. part of the deposits received by the postal savings banks are from foreigners and people who have never used the private savings bank. I am not able to give you comparison of figures, as our Banking Department was only created at last Legislature.

JOHN M. DAVIS, Bank Commissioner.

CALIFORNIA

San Francisco, California, July 30, 1913.

The Outlook, New York:

Deposits in California savings banks June 30, 1910, were $331,000,000, and on June 4, 1913, they were $430,000,000.

W. R. WILLIAMS, Supt. of Banks.

COLORADO

Denver, Colorado, July 30, 1913.

The Outlook, New York:

Savings deposits as well as other deposits have constantly increased in all State banks under the supervision of this Department since the establishment of the postal savings bank. Our theory is that while the postal savings bank may have stimulated thrift, it has principally been used by those who have heretofore concealed their funds or carried them in the form of money orders.

EMIL W. PFEIFFER, State Bank Commissioner.

CONNECTICUT

Hartford, Connecticut, July 30, 1913.

The Outlook, New York:

Official returns from savings banks in Connecticut made but once a year. Last report in October, 1912. From October 1, 1911, to October 1, 1912, there was an increase of over $10,000,000 in savings bank deposits. BANK COMMISSIONERS.

DELAWARE

Dover, Delaware, July 30, 1913.

The Outlook, New York:

Your letter to the Governor referred to this office. Individual deposits in savings banks in Delaware on June 14, 1912, were $10,800,000, and on June 4, 1913, $11,524,000, showing increase during first year of postal savings banks.

THOMAS W. MILLER, Sec'y of State.

FLORIDA

Tallahassee, Florida, July 30, 1913.

The Outlook, New York:

The gratifying increase in deposits in savings banks in this State is due to the general advance along all lines. In my opinion, postal savings banks have not aided or retarded the increase. W. V. KNOTT, Comptroller.

GEORGIA

Atlanta, Georgia, July 31, 1913.

The Outlook, New York:

Your telegram to the Governor received. We have no private savings banks in Georgia, and law provides for no savings banks of any kind. A. H. ULM,

Sec'y Executive Department.

IDAHO

Boise, Idaho, July 30, 1913.

The Outlook, New York :

No private savings bank in State. Savings deposits in State banks having savings de

The Outlook, New York:

Your telegram to Governor McCreary has been referred to me for answer. The records of this Department, which only became operative on July 1, 1912, show an increase of $4,600,000 in time and savings deposits in report of June 4, 1913, as compared with September 4, 1912. There is bound to be both a direct and indirect tendency to stimulate thrift in the citizens of any community by the introduction and use of savings banks of any description. Such institutions are not numerous in an agricultural State like Kentucky, where commercial banks are patronized, and therefore the good effects of these banks are not as apparent as they are in the industrial centers. THEODORE J. SMITH, Banking Commissioner.

LOUISIANA

Shreveport, Louisiana, July 30, 1913.

The Outlook, New York:

Savings deposits in Louisiana State banks showed $4,000,000 more in June, 1913,

than shown in September, 1911, when postal savings law went into effect.

W. L. YOUNG, State Bank Examiner.

MAINE

Waterville, Maine, July 31, 1913.

The Outlook, New York:

Maine has increased her deposits in all her savings institutions since the establishment of the postal savings bank. Maine's prosperity is largely due to the training her people have had by the savings banks. All of our banks now receive money in savings departments. Our people are extremely prosperous under existing economic laws, but many of our business men are frightened at proposed changes in tariff schedules. and all would like to see the present monopoly of metropolitan banks in some way better regulated by the Government. The country banks are now suffering from unreasonable refusals of the city banks to extend credit to them, and our business interests will be very much injured if this continues.

WILLIAM T. HAINES, Governor of Maine.

MASSACHUSETTS

Boston, Massachusetts, July 30, 1913. The Outlook, New York:

In reply to your telegram to our Governor I would state that the increase in the assets of the savings and co-operative banks in this commonwealth was larger in the year 1912 than in any other year in the history of our savings banks. A school savings system has been taken up by about fifty cities and towns and is cared for by our savings banks, indicating the favor with which it is looked upon for encouraging thrift among the school children.

The effect of postal savings banks is not apparent to this department.

AUGUSTUS L. THORNDIKE,
Bank Commissioner.

4, 1913, is $11,717,104.77. Deposits quoted June 7, 1911, as follows: Trust companies' savings deposits, $331,060.13; savings bank deposits, $24,956,726.52; State banks savings deposits, $3,415,362.48; total, $28,703,149.13. Deposits, June 4, 1913: Trust company savings deposits, $1,571,562.64; savings bank deposits, $30,399,487.76: State bank savings deposits, $8,449,203.50: total, $40,420,253.90, making increase mentioned. This does not include National banks. GEORGE F. AUTHIER,

ing Act, and not reporting to the State, we cannot give actual figures as to increase. JOHN H. MOOREHEAD, Governor.

NEW HAMPSHIRE

Concord, New Hampshire, July 30, 1913.

The Outlook, New York:

The savings banks of this State are very little, if at all, affected by the postal savings banks; deposits in latter are not large.

R. H. SCAMMON, Bank Commissioner.

NEW JERSEY

State House, Trenton, New Jersey, July 30, 1913. The Outlook, New York:

Since the last annual statement of the twenty-five savings banks operating in New Jersey, made prior to the opening of the postal savings bank on October 7, 1911, there has been an increase of $13,978,183.77 in the total deposits of savings banks in this State, as follows: December 31, 1910, $105,228,161.10; June 4, 1913, $119,206,344.87. While the actual increase for the period named approximates twelve per cent, our Department records indicate a slight falling off in the annual increase, as these figures show: December 31, 1910, $105,228,161.10; December 31, 1911, $111,168,616.45-total increase for year $5,940,455.35. December 31, 1912, $116,923,632-total increase for year, $5,755,015.55. June 4, 1913, $119,206.344.87-increase for the less than six months period, $2,282,712.87. This would indicate that while there is still a steady increase in the gross deposits, the percentage of annual increase is not as heavy as prior to the opening of the postal savings banks.

JAMES F. FIELDER (Governor of New Jersey).

224,555.93. This was our last report before the institution of the postal savings banks. On January 1, 1912, nearly three months after the law went into effect, our statement showed deposits of $1,619,115,648.45. On July 1, 1912, deposits were $1,660,564,190.93, and on January 1, 1913, $1,689,453.168.86. Our figures from the reports of savings banks at the opening of business on July 1, 1913, will not be ready for publication for at least a week. Am sending printed statements by mail to-day. E. J. GRAHAM,

Second Deputy Supt. of Banks.

OHIO

Columbus, Ohio, July 30, 1913.

The Outlook, New York:

Your telegram to Governor Cox answered as follows: State and savings banks in Ohio increased from $407,000,000 deposits on September 25, 1911, to $475,000,000, June 4, 1913. This gain is almost entirely in city banks with savings accounts. Postal savings have nowhere hurt our banks, and in some cases helped them.

EMERY LATTANNER, Supt. of Banks.

OREGON

Salem, Oregon, July 30, 1913.

The Outlook, New York:

Answering your telegram to the Governor, reports filed with this Department, June 4, this year, show total savings deposits of two hundred and fifty-three National, State, and private banks to be $2.438,381 more than reported by two hundred and forty-seven banks June 7, 1911. Total postal savings deposits, June 4, this year, $1,129,171.

Will Wrighт, Supt. of Banks.

PENNSYLVANIA

Harrisburg, Pennsylvania, July 30, 1913.

The Outlook, New York:

Governor Tener referred your telegram to me. I find by our record that on November 30, 1911, the total savings in the trust companies, banks of discount, and savings banks of Pennsylvania, exclusive of building and loan associations, amounted to $332,696,000. On May 2 last (1913) they amounted to $383,450,000. On November 30, 1911, the postal savings deposits, in the same institutions in this State, and exclusive of National banks, amounted to $80,588.20. On May 2 last they amounted to $613,200. Building and loan associations of this State, largely regarded as savings funds, had in total assets at the close of 1912, $213,825,000, an in