ed, and any measure
that would secure that end could hardly fail to be joyfully welcomed
by the business community, with the exception of the small minority
either selfishly interested in present banking corporations, or whose
prosperity is derived from operations based upon a state of
insecurity. Powerful as these interests are, there is no reason why
they should be permitted to stand in the way of the realization of a
better condition of affairs, should that prove attainable.

The leading merit of the national banking system comes from the
absolute security of its circulating medium, proceeding from the
governmental guarantee. Meanwhile the interests of the depositors, in
supplying whose convenience the bank derives its business, remain
inadequately guarded. Is not some system possible whereby in place of
this partial guarantee we may have a complete guarantee, covering both
circulating medium and deposit?

Fortunately, with the experiences of other countries furnishing
examples so available as they do nowadays, we are not left entirely to
our own resources in devising solutions for problems that confront us.
We have but to look to Austria for a most successful example of a
truly national banking system, that completely meets the demand. When
Austria established its postal savings bank, in 1882, a regular check
and clearing system was made a feature thereof. This, offering
substantially the same convenience as our ordinary private or national
banks in this country, together with the additional advantages of
absolute security of deposits, and checks good in all parts of the
country, has become enormously popular with the mercantile public, so
that the regular banking department has quite overshadowed the
savings department, important as the latter is.

Every post-office in Austria, therefore, has the function of both a
savings-bank and a bank of deposit. A permanent deposit of one hundred
florins, or forty dollars, is sufficient to make a person a member of
the check and clearing department. No limit is placed on the amount
that may be deposited, but a single check cannot be drawn for more
than ten thousand florins [four thousand dollars]. Interest is paid on
deposits at a rate not exceeding two per cent., while the interest on
savings may not exceed three per cent. A charge of two kreutzers
[eight mills] is made for each entry, together with a commission of
one fourth per mille. Another function of the postal bank