The herald., 1896-11-03
markets OF THE WORLD
Local, Eastern and Foreign
/ Commercial Dealings
WALL STREET SPECULATION
The British Postoiflce Savings Banks
Successful
Condensed History for Quarter of Cen
tury-From Small Beginning to
Great Affair.

The British Postoffice Savings bank lately
completed thirty-five years of existence,
and summary of the results reached Is
given in the Pail Mall Gazette, which ten
years ago gave an account of the progress
of the system for the quarter century COM
pleted in 1886. The journal in question
showed that, beginning in very moderate
way. only 435 deposits, amounting to 995i,
having been received on September 16, 1861.
the first day on which business was trans
acted, there were during 1885 GAIA 4s4 de-
posits. amounting to 1904 ,69i and on De-
cember 81 of that year the sum of Sal 697, =
S3S was standing to the credit of 1886, $50
depositors. in addition to which 3O597 de-
positors held government stock of the NOM
inal value of &2,452.252 These figures bore
ample testimny to the thrifty habits of the
United Kingdom, and to the facilities for
saving afforded by the postoffice. But the
ten succeeding years have given even more
striking results. During 1896 there were
aaS u SS4 81 deposits, amounting to 9S2,O7S,-
$50, or more than double the amount re-
ceived in 1885, and on December 81 last
s91,96S,975 stood to the credit of 6,45S, 597
depostors The Kill on the date
stock. In ten years, therefore, the num-
ber of depositors had nearly doubled and
the amount to their credit had more than
increased 10 per cent, AND the stock held
by them 1873 per cent In 1886 the amount
que TO Individual depoSitOrs averaged f14
Sd, and the holding of each stockhoIder
was $50 rs 3D.. In 1895 the average balance
due to individual depositors had risen to
Il5 IS 4d. anG the average of each hold
ing of stock to G100 16s. In 35 years or to
be quite accurate, in rather more than "a
years and quarter there have been 163-
6Gi $50 deposits and 1905, ,i57 Withdrawals. /.
The amount received. exclusive of interest
allowed to depositors. has been 2445 O05-
sos. and the amount withdrawn G347 1885,
$780,
The journal quoted says that to some ex-
tent the enormous increase of business in
recent years may be ascribed to the ope-
ration of the savings bank act of 1893 which
raised the annual limit of ordinary deposits
from $50 to ESQ. and the limits of stock
investments from G100 to f200 in one year.
and from $500 to $500 in all. The low level
of the bank rate and the consequent re-
auction in the interest allowed by bankers
on deposits have no doubt induced many
persons to invest money in the Postoffice
Savings bank, where they receive 21a per
cent on their savings. Making every al
lowance, however, for the additional busi-
ness due to these causes. and to the clos
ing Of several of the older savings banks
the growth of the Post Office Savings bank
tinued national prosperity and of the de-
velopment of thrift. especially when TAX
en- in conjunction with the fact that 945.-
100000 in the trustee banks. Some persons
regard the holding of so many millions
of money by the government as a serious
danger. and ordinary bankers are loud in
their complaints of the competition of the
Postoff1ce Savings bank, and in a lesser
degree of the trustee savings banks.