The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-01
POSTAL SAVINGS BANKS.
How the System Works in
England and Canada.
IT'S ADVAN Il AG E S.
Result of Sixteen Years Operation in
Great Britain.


ure should be ample proof that the groat popular
need Of present day Is the establ OF sys-
tenn OF savings banks which those who their
hard gained savings provsion against the pro-
verbal rainy Gay may fnd absolute security against
loss. II Is claimed that such institution under
government conduct already exists on the Continent
Europe in Groat Britain and several OF her col.
onies. In England close OF the year 1876 after
sixteen years. operation, tho bank had realized net
profit OF $5,500000 That the working o. the sys-
tenn as adopted by northern neighbors the Cana
dans may become familiar to the people this
try the following facts given in explanation Of
it,
THE CANADIAN
Shortly attor the confederation OF the provinces OF
the Dominic ION the Post Office Of 1867 adopted
by Parliament and tho formation OF the post office
savings bank was provided for by the following
clause: ITO enlarge the facilities now available Tor
tho deposit Of small savings and to make the Post
Office available for that purpose and TO give the di.
rect security OF the Dominion government to every
dcpositor for repay OF all deposited Dy
him, together with the interest due thereon. tue
Postmaster General may, with the consent OF the
Governor In Council, establish system OF post
office savings banks, in connection with
central savings bank established branch
oil the Post Office Department at the OF govern.
ment" Other clauses provided that the Postmaster
General should nominate pos masters who should re-
ceve deposits Tor remittance 70 the central office at
Ottawa and provision also made Tor details,
which Will appear later on. On the following LIST Of
April the system went into operation, and the eDd
throughout the Dominion On juno 30, 1863, 2l3
offices had boon opened, and that number has been
increased gradually until on June So 1871 there
2S7 branches IN existence.
WHAT HAS BEEN ACCOMPLISHED.
Al the close Of the last scal tJunc. 1870 there
had been COZ deposits made, and they amounted ia
TO SIC 504 z52 OF that amount 1926 800 bad been
invested Dominion five per cent stock; $12 99S, 1874
had been Withdrawn, and the balance. standing tina
credit of opon accounts and drawing interest, was
S., 639 937. During the nine years and three months
counts had been opened, &C. $40 closed, and on June
80, 1877, 4,074 were open The average amount OF
OF $3.50 $40 had been allowed deposors Each deposit
averaged about $50, and the Withdrawals $75 Tho
average OF each Of each deposit
the total expense OF management including salaries,
compensation to postmasters. inspection, printing.
stationery and other items was Sill 563 u,
erage oil about 81. 900 per annum.
Every post Office being money order office, Ia
open for tho purpose OF Inc savings bank during
amounts OF 81 or any number OF dollars (cents not
being receivedJ. provided the Deposits made In any
year ending June 80 do not exceed $780, and pro-
vided the total amount standing in such depositors
name books OF tho Postmaster General does
exceed ST. 900 exclusive Of interest THIS provision Is
made 10 prevent tue system from clashing with the
general banking business OF the country Tho priv
OF purchasing Dominion five per cent stock al
lowed the deposor that he desires still the
post office savings bank alter he has accumulated
1000 he have that amount or any portion OF Il
not less than 800 transferred to Dominion stock,
redeemabc on three months' notice at the Office 0f
The Recover General at Ottawa, at those Of dep
uties Halifax, ST. John, Montreal Toronto Winnipeg
or Victoria Such stock Is not transferable, aud
depositor allowed 10 be the holder Of than
ST. 600 worth. VIII thus be seen that the savings
bank 10 used for more than 81 900 by any
person
THE FIRST DEPOSIT.
Every individual on making a first deposit Is
Qiyc his name occupation aud residence
ana 10 sign u declaration that he directly or ill.,
directly entitled to any sum or sums in his
own name or In that any other person she books
OF the post Office savings bank, and conscntng 70 hs
deposits bong governed by the regulations Of tue
bank. provision OF the declaration 10 that II any
porlIon OF not true the dcpostor shall
forfeit all right and title 10 bis deposit
Interest calculated yearly at the rate OF four per
per annum Is allowed on deposits and III computed
from the 1rsL sf the calendar month next following
the deposit up TO the hrst OF the mon,n IN which
year interest calculated ON the amount tho de-
posters credit ana added TO and becomes part Of
the principal money.
EXCEPTIONAL DEPosToRs.
Deposits may DO mace by a trustee on behalf OF
another person in tho JOINT names OF such trustee
aud the pe-so whose account such money shall
DO deposited, but repayment OF the same or any
part thereof viii not be made without the receipt OF
both tho paries by or for the benefit oil any person
under twcnty-ono years VI age, and repayment 10 o
minor over ten years OF age will DO maae tho
same manner AS II he were OF full age; by married
women ;ani deposits made, made by women who
shall afierward marry, VIII be repaid to any such
woman.
WITHDRAWAL DEPOSITS
Where the deposiior wishes TO withdraw tho whole
any part OF MS money ne Is required TO Ill IN
blank form specifying the number OF his pass book,
the name OF The Office hrs deposit book
issued, the sum he wishes to Withdraw, his occupa-
ZION aud address, and tho post Office at which
wishes to receive the money. HIS application 10
mailed " ottawa and on ITS receipt Dy the Postmaster
General cheek for the amount required, payable at
The oifce named, 10 sent the applicant by post.
THIS cueck must be presented WITH the least
possible delay, together with the depositors
amount repaid and attests tho entry With his
signature and tho dated stamp oil the Office The
cheek the amount repaid 10 him. Payment Of the
check 10 made only 10 the deporior In person or to
the bearer Of witnessed order from his hand Pro.
vision Is made for tho payment OF the heirs OF any
deposiors who may dire leaving balances to thor
credI Provision Is Also made Tor the case Of do
positor who being illegitimate, may die intestate
leaving any person or persons wno bul for the
gitmacy Of such depositor, would be entitled
TO the money due the deccused. Tho Post
master General, with tho written authority
of the Attorney General Ii authorized to
pay the balance 10 the persons who would have
been entitled 70 the same II the depostor had been
legitimate. All aisputcs between tue Postmaster
General and any individual depos:or or any executor
General, aud his decs,on rs DnaL II Is against tue
regulations TOR any postmaster other Official 10 dis
close the name OF any depositor or the amount do
DoiSas AT rnE CENTRAL OFFICE
Al the close oil each day on which deposits have
been received tho postmasters oil the savings bank
Offices througn the DOMINION forward 10 the cen
trial Office nj Ottawa account oil all transactions.
On the day alter tue receipt of the postmnsters'
deposits are placed to the credit oil
posters and acknowledgement Is sent By post
alrcct 10 each depositor. ledger kept tor each
ofce continuing separate account Tor every depos-
itor whose nrst deposit was made Office. De-
positors eau make deposits at pleasure at any post
Office savings BANK without change OF pass book, aud
deposits OF that character represent considerable
percentage ot the wholc number u follows that the
deposits viii be found spread over wide range Of
Iedgers nj The central Office. BY a simple system
known as "cross deposits the ceutfa Office enabled
TO BRING into harmony Office by Office, the dsposus
reported by postmastcis ana the deposits
ported In the icdgers, Notices OF withdrawal
received from dcposltors invariably acted
upon the same day as received, cheeks
being issued payable at any savings bank
Office the uopostor may name. In dcpostors' logger
account there are, IN addition to tho columns ior
deposits and Withdrawals two others, headed respec-
lively Balance OF prlncipa' and balance Of inter-
est' The balance AT a depositors credit u thus
shown At glance. An entry IL then made IN the ball
ance OF interest column oil the interest on the deposit
IRON dste up To the OF the current year une 30,
anu wnen further deposits are made tue interest
each, us posted, Is In like manner inserted and ADDED
balance q interest INN preceding.