Morning journal and courier., 1883-12-10
Monday, December 10, 1883.
POSTAL SAVINGS BANKS.


 The system fpostal savings banks has been pretty thoroughly tested in the provinces of Ontario and Quebec, where 1t has been in operation since April 1, 1868. The object the government had in view when establish ing these banks was to encourage and assist the poorer classes in saving a portion of their earnings. The direct security of the government is given by statute for all depos- it's made. Deposits are received in sums of $1 and upward, but in no case can the depos- It's of any one individual exceed $500 in one year unless by special permission of the postmastsr-general,n nor can the total amount standing to the credit of any one depositor exceed $1 ,OOO. When that sum is reached no further deposit can be made until a DOT tion of it has been withdrawn. That depos- ltors may be afforded every possible conven- fence, 1t is arranged that deposits may be made in any of the banks without notice or change of pass books, and that money may be withdrawn at the savings bank most con- venient. Every deposit made is entered in a numbered pass book which is retained by the depositor as primary evidence of the re- ceipt of the deposit. The amount of each deposit, name and residence of depositor are reported to the postmaster general, whose acknowledgement is forwarded direct to the depositor as the conclusive evidence of his claim to the repayment of his deposit upon demand being made by him on the postmaster general. Interest is calculated yearly at the rate of per cent. per annum, which is d. lowed on all deposits, and is computed from the first day of the calendar month following the date of the deposit. Each depositor is required to forward his deposit book to the postmaster general on the anniversary of the day of making his first deposit, in order that the entries may be compared with those in lsdgers at headquarters, and that the interest due may be entered in the book. In with. drawing money application must be made di rect on printed form to the postmaster general and not to the local agent, as in the case of other government savings banks. On receipt of. the application a check for the amount required is mailed direct to the de. positor.
 On June 30 last there were three hundred and thirty postal banks in Ontario and Que bee. The total number of deposits made during the year increased to 1o9, 489, amount ing to $6,S26, ,266, each deposit averaging $62. The total number of withdrawals was 45,252, amounting to $4, 73o, ,995. The total amount standing to the credit of dspositors WAS $11, 976, ,237, which the statement for Oc. tober shows to have increased to $12, ,456, ,633 The average of each outstanding account June 30 last was $196. The total cost of maintaining these banks, including interest allowed to depositors and all expenses of management, averages about 1-25 per cent. on the average savings balances in the hands of the government.
 These and other facts concerning the Ca. nadian postal savings banks system are set forth in letter from Ottawa to the Boston Herald. As 1t is possible that the advisabil- ity of putting similar system in operation in this country will be discussed by Congress their publication is timely. Postmaster-Gen- sral Gresham has, it is said, made repeated inquiries of the Dominion government con- cerning the working of postal savings banks in Canada.