The Republican. [volume] (Oakland, Md.) 1877-current, 1878-03-16
The Postal Savings system.

40 9o'iu at w dSnlnStOn Jnat tnere
y undoubtedly very fair probabil-
lsy of the passage of the Postal Say
ings bill, the provisions of which
were published last week; and this
prospect is directing considerable
curiosity towards the British system,
Nnich has been successfully tested
and is firmly established. A review
"a the whole subject was recently
soiltalned in one of the English mag
Hzlhes, and reproduction of some of
ne leading facts may be interesting
"a americans who are looking for the
introduction of the institution into
mis- country. The act creating the
postal savings system in the British
sStands went into effect in 1861, and
Was% directly prompted by the fact
t4atfer several years previous there
had been much fragrant rascaliry and
carelSsness in the management of
the savings banks, by which deposi-
tors hid lost great deal of money.
Inc government proposed to pay
only 23per cent. interest on deposits,
which was considerably less than
that offeed by the banks, but it he d
out otheinducements, some of which
the bank could not offer. The Gov
ernment ,commerced operations by
opening 80 postoffices for the receipt
of Deposit and on the same day 435
depositors presented themselves.
The new Wnture was widely adver-
tised, and d the end of the year 1862
the whole number Of officers at work
was 2,535, AID a fund of e1 sos 221, ,
Including interest, had accumulated.
At the endpf 1876, during which
year 1873 newoffices were opened. the
whole numbe of'places of deposit
was 5,4SS; thenumber of separate ac-
counts was 3,1&, 1916; the total amount
of deposits was GS,9S2, $50, and the
average sum OF each deposit was f2
16 8.
These figures sufficiently prove that
the postal savings system quickly
gained popularity in the country
where it was first tried, and we be-
lieve that any attempt to abolish it
now would be hooted down. The
proportion of depositOrs to popula-
ton is about to 10 in the United
Kingdom. Large as this proportion
is, it would be still greater but that
lhe old savings banks are still in eX-
istenee and paying interest at the
rate OF 81 per cent, an excess over
the Government rate which induce
many persons to give them the pref
erence. There is now a very gener-
al demand that the Government
shall increase its rate to 3 per cent,
and it is not unlikely that it may do
so. But even at the lower rate the
depositOrs at the postal offices are
better off in the long run. in thir-
teen years the total loss from defalca-
tions in the savings banks was e179,-
$50, nearly all of which was borne
by the people who had entrusted
money to them. In fourteen years
the total loss by the postal system
was but "a 37S, and not a penny OF
it fell upon depositors, as the Gov
ernment was bound to make it all
good to them. This is at the average
of three tarthings per hundred
pounds of deposits, and the belief is
that the losses will rarely exceed that
fraction.
The profits upon postal savings
business from 1861 to 1877 amounted
to the immense sum of G1 ,101 ,531.
The smallest sum that is accepted on
deposit is one shilling. The largest
amount that may be deposited in any
one year is $50. The largest total
deposit permitted to any one person
is 9l50. An effort is being made to
enlarge the total permissible deposit
to $500. A depositor is allowed to pay
his money at any office and draw it
at any other. He has the choice OF
X 44S offices at which to ponduct 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 if he has his book
with him. The method Of deposit
is this: The depositor makes writ
ten declaration that he has no account
in any other savings institution. He
then hands in his amount, and it is
entered into a pass book, which is
marked with the Office stamp and re-
turned to him. In two or three days
a receipt for the deposit lis returned
to him from the central Office at Lon
don. When money is to be with
drawn he obtains from any potsoffice
a form of notice. This he fills up,
signs and drops in the nearest letter
box. 1t is sent to London, and
promptly the money or money or
der is forwarded to the Office designa.
fA A fRn tl,a a