Second Memoir on Pauperism, Post 6

The idea of industrial associations of workers seems to me to necessarily be fruitful, but I do not think it is ripe.  One must, then, for the present, look for other solutions.

Since one cannot give the workers a proprietary interest in the company, one can at least make it easy for them to accumulate independent wealth based on the salaries that they draw from the company.

Encouraging savings from wages and offering an easy and sure way for the workers to capitalize on their savings, making their savings earn revenue; these are the only ways of which society can make use presently to combat the evil effects of the concentration of property in few hands and to give to the industrial workers the spirit and habits of property owners that a large part of the agricultural class possesses.

The question boils down to the discovery of ways that will permit the poor to capitalize and to make their savings productive.

The first of these ways, and the only one that has been used in France until now is the establishment of savings banks.

I will speak about the development of savings banks.

French savings banks differ a little from one another as far as differences in administration are concerned.  But one can definitely consider them all as establishments that offer a way for the poor to place their savings in the hands of the state, which is charged with the duty to invest them so as to earn an interest of 4%.

It is about the same in England, only the interest offered by the state is a little less.

Does not such a remedy open itself to great dangers?

I have noted first that, in France, the state that gives the poor 4% on their money could easily borrow at 2.5% or 3%.  The state therefore pays about 1% without needing to, for special consideration to the lender.  The resulting sum must be considered as a poor tax  that the government raises from all taxpayers to help the most needy.

Will the state want to continue this charge for an indefinite time?  Can it?  That is doubtful.

The amount in the savings banks has increased within a few years to more than 400 million.  In England, it is at this moment at 400 million.  In Scotland, which only has 2.3 million inhabitants, the savings of the poor amount to nearly 400 million.

If the French poor bring to the public Treasury 400-500 million, which, within a given time is possible and even probable, on which it must pay an interest of 4%, would it be in a position to accept it?  Unless the interest is reduced, which would already be a great misfortune, would not such a sum be more a liability than an asset?