The rise and fall of the public debt from July 1, 1857, to July 1, 1898, appear more fully in the following table.
| Years. | Total debt. | Debt less cash in the Treasury. |
|---|---|---|
| 1857, July 1 | $28,699,831 | $9,998,621 |
| 1860, ” 1 | 64,842,287 | 59,964,402 |
| 1861, ” 1 | 90,580,873 | 87,718,660 |
| 1862, ” 1 | 524,176,412 | 505,312,752 |
| 1863, ” 1 | 1,119,772,138 | 1,111,350,737 |
| 1864, ” 1 | 1,815,784,370 | 1,709,452,277 |
| 1865, August 31 | 2,844,649,626 | 2,756,431,571 |
| 1873, July 1 | 2,234,482,993 | 2,105,462,060 |
| 1879, ” 1 | 2,245,495,072 | 1,996,414,905 |
| 1889, ” 1 | 1,619,052,922 | 975,939,750 |
| 1893, ” 1 | 1,545,985,686 | 838,969,475 |
| 1895, December 1 | 1,708,871,670 | 948,477,612 |
| 1896, July 1 | 1,769,840,323 | 955,297,253 |
| 1897, ” 1 | 1,817,672,665 | 986,656,086 |
| 1898, ” 1 | 1,796,531,995 | 1,027,085,492 |
In 1865 the annual interest charge on the public debt was $150,977,697. In 1898 it was only $34,387,408.
From 1791 to 1898 the gross receipts of the Government were $30,547,063,336.06 and the gross expenditures $29,768,597,237.24. The net ordinary receipts, which do not include loans or proceeds from the issue of Treasury notes, were $405,321,335.20 for the fiscal year ended June 30, 1898, and the net ordinary expenditures, which do not include payments on account of premiums or interest on the public debt, were $405,783,526.57.
VIII. POSTAL SAVINGS BANKS.
Many believe that a system of postal savings banks could be generally introduced into the United States. Such banks doubtless appeal to those who have more confidence in the Government than in any association of individuals. Their safety may be conceded, for when the Government fails other institutions are likely to go the same way. But when people deposit money in a postal savings bank, they make a loan to the Government. This implies that the Government must be a perpetual borrower, whereas, until recent years, the United States has been a debt-paying nation, and in the course of affairs may soon be again. Unless we are to have a large permanent debt, the deposits in postal savings banks would have to be invested in general securities. Such investments could not well be made by the post-office officials of the country.
In Great Britain these banks have been in existence for about thirty-eight years, and their number has grown to about 12,000, with more than 6,000,000 depositors. The system prevails in a number of other countries. The more concentrated and paternal system of government prevalent in countries having these banks renders their management a much less difficult problem than it would be in the United States with our large areas, vast number of post-offices, and general diversity of conditions. In Great Britain the deposits in the postal savings banks are made at the money order post-offices in a pass book held by the depositor. Withdrawals are made by filling up blank forms, and these withdrawals may be made at any money order post-office. Deposits are invested in the public debt, and the rate of interest is about two and one half per cent. The postal savings banks of Great Britain contain deposits approximating $527,000,000; those of France, $152,000,000; those of Italy, $90,000,000; those of Belgium, $67,000,000; those of Canada, $31,000,000.
IX. SAVINGS BANKS IN THE UNITED STATES.
There are no worthier financial institutions in the country to-day than the savings banks. Most of these are organized on what is known as the mutual plan. They have no capital, no stockholders, and all the assets are held in trust for the benefit of the depositors. They are managed by a board of trustees, who serve without pay. The investments which the banks are permitted to make are generally restricted to high-class securities insuring safety. The savings banks in New York State, especially, are closely restricted in investing their funds, and failures in recent years are almost unknown. A deposit in one of these banks is hardly less safe than an investment in Government bonds. The savings banks are the primary schools of economy and thrift, and I believe that an extension of the mutual savings bank system throughout the country, under proper legal safeguards, would be of the greatest benefit to the people of the United States.
The deposits in banks of this kind are usually limited by law to amounts not exceeding $3000 to one depositor, as they are not intended to be used by the wealthier class of people. The following statistics will be found interesting.