Bozeman avant courier. [volume] (Bozeman, Mont.) 1872-1882, 1878-04-18
Postal Savings Banks.

u. from an exchange:
" The "a, creating the postal saving sy:
le tenn in the British Islands went into etfet
lie in 1861. The government proposed t
is pay only l-2 per cent interest on deposit:
q which was considerably less than ofiere
It by the banks, but it held out other induce
e ments, some Of which the banks could no
l. offer. The government commenced opera
y tions by opening 800 post Offices for tn
J, receipt Of deposits, and on the same da,
d 435 depositors presented themselves. Th,
i new venture was widely advertised, and a
0 the end of the year 1861, the whole number
i OF Offices at work was 2,535, and a fund o
e El,09S,s2l. including interest. had accumu
: lated; At the end of 1869, during which
j year lSS new offices We're. opened, tht
: whole number of places of deposit was
5,4SS; the total number of separate accounts
= was ), 3,166,3lG; the total amounts of depOs.
l its was GS,9s2 $50. and the average sum OF
each deposit was CO l6s Cd.
These figures sufficiently prove that the
postal savings system quickly gained pop
ularity in the country where it was first
tried. and we believe that any attempt to
abolish it now would be hooied down.
The proportion of depositors to population
is about enc to nineteen in the United
Kingdom. Large as this proportion is, it
would be still greater but that the old say
ings banks are still in existence, and pay
ing interest.at The rate of three and one
quarter per cent. an excess over the gov
ernment rate, which induces many persons
to give them the preference. There is now
a %erss, general demand that the government
shall increase its rate to three per cent. and
it is not unlikely that it may do so. But
even at the lower rate, the aepositors at
the postal offices are better off in the long
run. In thirteen years the total loss from
defalcations in the savings banks was c179,-
$50, nearly all of which was borne by the
people who had entrusted money to them.
In fourteen years the total loss by the post
n system was but Gl, ,337, and not penny
OF it fell on dcpositefs, as the government
was bound to make it all good to them.
This is at the average of three farthings
per elO0 Of deposits, and the belief is that
the losses will rarely exceed that fiac-
ton.
The profits upon postal savings business
from 1861 to 1877 amounted to the immense
sum of 81 ,lO4,53l.
The smallest sum that is accepted on de-
ttro7is Il or'0 siiIiiinS. riIe 1urgcst anIount
that may be deposited in any one year is
30 pounds. The largest total deposit per-
mitted to any one is $50 pounds. An ef-
fort is being made to enlarge the total per-
mssable deposit to 800 pounds. A depos-
itOr is allowed to pay his money at any
office and draw it at any other. He has
the choice of 5,4lS offices at which to con-
duct his transactions, and if he happens to
be away from home at any time, and in
want of money, he can obtain it from the
nearest Office il he has his book with him.
The method of deposit is this:
The tepositor makes a written declara-
ton that he has no account in any other
savings institution. He then hands in his
amount and it is entered into pass-book.
which is marked with the office-stamp and
returned to him. In two or three days a
receipt for the deposit is returned to him
from the central Office at London. Wien
money is to be withdrawn, he obta;ns from
any post Office form Of notice. This he
fills up, signs and dr.. ps in me nearest let
ter box. It's sent to Lc cndon. and prompt
ly the money or Money order is forward
ed to the Office designated. A warrant for
the amount is then written and signed at
the central Office, one-,lalf the warrant be-
ing tOr the postmaster and the other halt
for the depOsitor; and in day or two af-
ter the requisitiOn is mailed, the latter goes
to the post office and presents his half of
the warrant. 1t is compared with the
other half, and if it is correct, the amount
is paid out to him.
This system, of which we have given
only an outline, has been adopted in near
ly all its features by the ,Scverntnent of
Italy and Austria. 1t has been introduced
also in the Dominion Of Canada and in
New Zealand. In France, Germany, Bel
giltm and the Netherlands, an approach to
the system has been made by the govern
ments authorizing the post offices to re-
ceive deposits for the regular savings banks,
so as to give larger facilities to the people
to place their savings. 1t is more than
probable that in all these countries the
British method will sooner or later come
into use in its principal features. The pro-
jected system for this country differs vide
ly from that of Great Britain, mainly, how
ever, in tliiliihg all deposits into our ma
tional securities. 1t is equally excellent,
so far as allowing depositor to realize
upon his investment when lie is away from
home and short Of cash is c0iicefiled, us
the money orders given out to depositors
are expressly made Transferable, and accord |
ingly may be sold or hypothecated by their
actual owners. If the dep6sitor wants to
become a bondholdef he can do so as soon
as he has. saved up $40, as the denomina-
tions of the 3 Go bonds to be issued in ex-
change for postal orders run down as low
as that figure, and do not ascend higher
than 500. Or, if he desires to become
bloated bGndh0tder, he can keep on acct,m-
ulatihg his 8 Cos until he has $500 worth
of them in face value, and then exchange
them at par for a $500 per cent bond.
thus gaining the increased interest.
We are inclined to think thai the idea of
a postal savings system will take well with
the American people. 1t is handy, conven-
lent and safe. All the debt created would
be held at home, and the interest paid
would circulate through domesticchannels.
The people would have absolute security,
prompt payment, a most convenient
method of obtaining money i an emergen-
cy or when travelling, an iaducement 20
thrift, ready means of access to govern
ment securities, which are now often be-
yond their reach, and money interest in
the business Of the government and sound
financial legislation. This last considera-