is the
buying and selling of government securities, for which a commission of
two per mille is charged, with a commission of one per mille for the
cashing of coupons.

It is interesting to learn that two years before the adoption of this
system by Austria, a very similar plan was advocated by an able
American student of finance, the Hon. L. V. Moulton, of Grand Rapids,
Michigan. In his book, "The Science of Money and American Finances,"
published in 1880, he said: "The government ought to provide a deposit
system of absolute safety to depositors for all who choose to avail
themselves of it. A system of postal savings-banks somewhat similar to
the British should be adopted. The government receiving a deposit, and
allowing the depositor to check out at the same or any other office,
paying no interest and doing no loaning, receiving the use of the
funds while on deposit, as compensation for storage and transportation
of funds. No actual transportation would, of course, be required,
except to settle balances between offices. This would be the safest
possible deposit and most convenient exchange system, and is quite as
proper for the government to undertake as the postal or money-order
business. As it is, the government coins money and transfers money,
but will not take it on storage, which is absurd, and forces the
people to deposit with loan and discount concerns, liable to explode
at any time and leave them penniless."

Although interest on deposits is paid in Austria, there appears to be
no good reason why it should be paid were the system adopted in this
country. There is no need of it as an inducement, for the absolute
security and the greatly increased convenience of the system would be
sufficient for that. The present national banks pay no interest on
deposits, the facilities afforded being adequate to secure all the
deposits needed.

It appears desirable, however, to pay interest on deposits of savings.
In the bill prepared by Postmaster-General Wanamaker, it is provided
that this shall not exceed 2.4 per cent. This low rate is fixed upon
in order that the interest may be considerably less than the average
paid by private bankers to depositors. The great obstacle to the
establishment of postal savings-banks in this country has been the
lack of available means for the investment of the funds, the rapidly
decreasing national debt making government bonds out of the question
for the purpose. Mr. Wanamaker proposes t