Savannah morning news. [volume] (Savannah) 1868-1887, 1881-11-26
The Proposed Postal savings Banks.

The Proposed Postal Savings Banks.
Postmaster General James. who has
long been an advocate of postal savings
banks, besides his recommendation for
their establishment in his recent report.
has had q bill prepared, which viii be
brought to the attention Of Congress.
Mr.. La Rue Harrison. Inspector Of the
money order system, speaking for the
Postmaster General. has explained the
provisions OF the bill he states that,
subject to such changes as Congress may
determine. the measure viii provide. first,
for the creation Of postal savings banks
at the discretion Of the department;
second, the system shall be selfsus-
tanning. DO appropriation being required;
third, the United States shall guarantee
the repayment Of all sums deposited to
the depositor or his legal representatives.;
fourth, the rate of interest shall be two
per cent. to the deposition. the deposits
being loaned to the United States at
three per cent, the one per cent. differ
ence being set aside for the payment of
all expenses under the system, the sur
plus, if there be any, to be turned into
the general post Office fluid. The bill
will provide for the security of deposits
till they can be transmitted to Washing
ton, the easy withdrawal of the same
and the necessary inspectors and clerks.
Unless otherwise determined each per
son can have on deposit no more than
$500 in one year, and at any one time
not more than 81. 500. Subject to the
above limitations it is proposed to open
an account with depos:tors on any sum
If s. OF 81 A plan employed in Great
Britain for receiving smaller sums will,
however, be incorporated in the bill.
This provides that card properly pre-
pared be given the applicant, who will
buy postage stamps to the amount he
wishes to deposit. The stamps will be
pasted on the card and cancelled
When the aggregate reaches 50
a deposit book will be furnished
with the amount credited, and a regular
account will be opened with the deposit
tor. all accounts being kept at the
central depository, 10 depOsitOr can ex
coed the amount allowed him. PrOvis-
ions are made for transfers of deposits
from one Office to another, loss of &C
count book and payment on transfer of
deposits to legal heirs and other details
Of savings bank management.
The system, which prevails in Germany,
Switzerland and Great Britain, is intend
ed to reach those people who have no
access to savings banks. or who are not
sa isfied with the security of chartered
institutions
The bill will provide that everv post
office paving a compensation of $500 per
annum may be established as a savings
bank. This would secure such institu
lions in nearly all settled counties in the
Union. The BEGINNINGS would be made
in the large cities. and. 1t is thought now
that within a year upwards of 1000
savings banks would be in operation IN
der the law.
From the report of the Comptroller of
The Currency it appears that in 1876 there
we're AL saving banks in the Eastern
States, 1870 in the Middle, % in the
Western, only 8 in the Southern and in
the Pacific States and Territories. Under
the provisions of the proposed Law
every post office in which the salary and
fees of the postmaster amounted to $500
DER aunum may be established as a
postal savings bank. This would secure
he establishment of such an institution
in nearlyif not every settled county in
the Union.
II. Harrison has been long and promi
gently connected with the management
of the postal money order system. From
his experience he gave it as his opinion
that millions of dollars are boarded away
~ persons, particularly in the Southern
aud Western States, which they would be
more than ready to put into savings
ranks which were accessible and had
The guarantee Of the government In
Great Britain the system was established
twenty years ago. At the end of the
drst year there were SIS postal savings
banks, with over $40 O00. 900 of depos
its. Now there are over 6 600 postal
savings banks, with over 800, O00. 900 of
deposits. Mr.. Harrison said, in reply
10 question, that the deposits in the
regular savings banks had also steadily
increased in the meantime. 1t was i'm
possible TO say whether they had in
creased in proportion, but, so far as est
mates could be made. they had not been
affected by the establishment Of the gov
eminent institutions.
The money order business amounting
70 500, 900, 900 annually involves the
employment of but two hundred extra
employees. II is thought that three thou
SAND postal savings banks would require
about The same amount of extra help.
1t is proposed to pay postmasters one
fourth Of one per cent. Of the deposits
at their offices with some Incl
dental fees. Speaking Of the
need and advantages of the system
Mr.. Harrison says: Within twenty years
1 believe we would have $500, 600, 900 on
deposit that would otherwise be spent in
excuses or boarded in stockings and
hiding places, without benefit to the
owner and a temptation for theft. l
know of no possible objection to The sys
tenn. The experience of Great Britain.
OF Germany and Of Switzerland supplies
every argument in its favor"
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