Evening journal., 1897-11-15
POSTOFFICE BANKS.
Gary's Plan to Help the Peo~
pie Save Money.
THE POSTMASTER GENERALS REPORT
Recommends the Establishment OF Postal
Savings DeposItories System De-
fned In Detail-How IL Works
In other Countries.

WASHINGTON, Nov. 15.-The first |
annual report of Postmaster General |
James A. Gary TO the president has |
been made public. It's feature is the |
strong advocacy Of postal savings de-
positories. scheme over which POST
master General Gary has worked for
many months In the formulation OF /
plans to present TO the president and |
congress. He says the time is ripe for
their establishment and that the adop-
tion Of well organized system would
confer a great boon upon a large num-
ber Of people and ultimately be of in
estimable benefit 70 the whole country.
The estimates Of the revenues and ex-
penditures for the fiscal year ending
June 30 1893. are: Total postal revenue
for 1897. $50, ,665. .462 T3; add 8 per cent.
S4.133.2 .27313 Estimated revenue for 1898,
$50 79S, 1876. SO: add per cent, S6.O75,9ll5i.
Total estimated revenue for 1899. S92,-
S7464zs7; estimated expenditures for
1899. SOS. 922 760; deficiency for 1899, esti-
mated, s6,04s 1928.
Following is an abstract OF the re-
port;
The increase Of the postal deficit for
1897 is largely n reflex OF the depressed
business conditions which prevailed all
over the United States during the first
three quarters Of that period. There
has been no extravaganza OF expendi-
ture save that obligated by law. Reit-
Grating the injustice inflicted both upon
the postal revenue and the people by
second class mail matter carriage regu-
iations the enactment by congress OF
some measure to remedy the wrong,
similarly pointed out by past postmas-
ters general, Is urged. As to this the
postmaster general says: III this were
done. there would be an end 10 postal
deficits and the service could be en-
larged and popularlzed by a broad ex-
tension Of free delivery without in
fringement upon the general resources
of the government and eventually re-
suit in the much desired reduction OF
letter postage TO one cent per ounce"
No method OF perfecting the organi2a-
tion Of the postal service has proved
more effective than the consolidation Of
postofices, Legislative restrictions on
its development are to be regretted, and
n repeal Of the Ave mile limit consolida-
tion measure In the 1896 postal appro-
priatlon bill Is recommended.
The experimental rural free delivery
has been generally appreciated; few ex-
penditures have conferred greater bepe-
fits IN proportion, and II has unques-
tionably proved a potent factor in at
Z tanning what should be chief aim OF
government. the granting OF the best
possible postal facilities TO the family
class. The report reviews In detail the
operations OF the various branches Of
the department. The portion on the sub
ject OF postal savings. in brief follows;
Many millions Of dollars are undoubt-
edly secreted by people who have little
or no confidence in ordinary securities
and monetary institutions organized by
private citizens. IL Is dead capital, but
AZ It's owners could be inspired with abb
solute confidence in the security of an
Investment IL Is altogether probable
that the bulk of this fund would find
it's way into the channels of trade and
commerce. II the government under
took this task. the service would un-
doubtedly be gladly accepted by the
people. Their faith in the government
Is unnounded.
Their little savings. which separately
could hardly be put out at interest,
would amount In the aggregate to a
sum that could be invested to their ad-
vantage. II would tend TO cultivate
thrift in a large class. realizing the ad-
vantage OF deposting with the govern
ment instead Of wastefully and useless
~ expending 1t: II would tend to better
citizenship, bringing into closer rela-
tlonship the government and its ciu-
xens and developing practical and en-
during patriotism. This growth Of pa
trlotic sentiment and good citizenship
constitutes a powerful appeal to states
manshlp to make way Tor these benef-
icent .consequences.
The proposition Is an accomplished
fact in nearly every country In Europe
in the British dependencies Of both
hemispheres and even in Hawaii In
Great Britain 100000 depositors have
upward OF $3.50. 900 600 in savings ac-
cumulated during 35 years, and In ter
years fewer than 10000 Hawaiian de-
posltors saved nearly S1,o0O,0O0. These
vast accumulations have been made
with the least possible loss to the gov
ernments which guarantee their pay
ment and with a minimum cost TO th'
millions Of depositors
Postal savings would not conflict witt
these savings banks, but would encour
age savings rather than accumulations
The conversion OF money order Office
into savings repositories would sooi
AFFORD infinitely more facility for receiv
ing interest hearing deposits than tn
interest paying banks do now Tn
most aggressive opponents are amon
the private institutions engaged Il
somewhat similar enterprises thougl
associations Of the larger cities recog
nizc In II a valuable feeder to the hnan
cial currents Of the country. Securit
and not the rate OF interest is the pri
mary and essential condition Of such
system. and bonds Of states. countie
and municipalities and real estate fur
nish an illimitable field Comparn
other countries, the postmaster gener1
says nearly every country permits II
most popular ccin as the minimum
amount OF deposit varying from Nv
cents In India to 81 in Canada. Max
mum deposits vary from S2S5 In Franc
to 81, f35 In New Zealand. Deposits owe
that amount are noninterest bearing
and In several countries the surplus
by law invested in national bonds. Bot
deposits and accounts are usually smal
France made a profit in 1895 Of Sl10Ol
in handling 25O0.0O0 accounts, aggr'
eating S143. 600 COO after paying p,
cent interest Great Britain earned
surplus CT $50. 600 after paying 2h p,