Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1897-10-20
Postal Savings Banks.

able agitation of the subject of pos
tai savings banks, the uggressor in
the demand for these banks being
the Chicago Record, and on the first
page will be found a clipping from
that journal setting forth some of
the advantages to be derived from
the establishment of such institu-
tions.
The movement is not a new one.
Postal savings banks were estab-
lished in Belgium in 1870 and have
since been put into successful opera
ton In France, Italy, Hungary,
Sweden, England and the British
generals have recommended their
establishment in this country and
congress has considered the matter,
but not with seriousness. At the
coming session the matter will prob
ably be urged in both houses and as
opposition is weak, it is not improb-
able that a bill, some such as the
Record suggests, will be enacted.
The postal savings banks are in
tended as a boon to the poor who
desire to save small sums or Guilt
vate in the young a habit of saving.
National or state banks are unwil-
ling to receive small sums for de-
post, and there also exists a feeling
that too often the banks fail and the
depositor loses heavily. 1t lis held
that postal savings banks would in
no way be detrimental TO the bank
ing interests of the country for not
only the reason just cited but that
the interest offered would beso low
as not to compete with the rates
offered by private banks.
The plan suggested contemplates
that each money order office shall be
a place. of deposit OF withdrawal,
though of course the system could
not be extended to all offices at one
time. but must be left in the hands OF
the postmaster general to extend az
fast as possible, ultimately to in
clude all money order offices in the
country. Anyone may deposits sums
of 81 or in multiples thereof, but not
to exceed $500 in any one year. Up
on depositing, the ~depositors would
receive a pass book, similar to those
issued by the bank, in which would
be noted by the postmaster the
amount deposited. This would be q
receipt for the money, but in addi.
tion thereto a receipt would be
mailed the ~depositors by the post
master general within twenty days
after the deposit had been made
These pass books must be forwarded
to the department each year fol
comparison and entry therein Of the
accrued interest. The government
would be liable for all deposits made
thereby securing to the people al
absolutely safe bank and In addition
thereto would pay interest on sucf
deposits to the amount of 2 per CEN
per annum. Interest would not bt
paid any single depositor on amounts
in excess of 81 900. That the govern
ment might meet this interest an(
defray the costs of administration
the savings would be invested b,
the government in the United Statei
bonds, which pay about ~ per cent
or in case there were no government
bonds available, then in guarantees
bonds of states or municipalities
which have been approved by tn
United States attorney general.
Withdrawals could be made at an,
time upon notifying the department
of your wish to make such with
drawal, whereupon he would sen,
> you a certificate which would entitl
: you to receive the stated amount a
any postoffice in the country. Thi
would be distinctly a gain i've tn
! present banking system, under which
| the funds can only be withdraw
from the bank where they had beeI
, deposited. A change of residenc
) would in no way effect the deposi
! tor, as the postoffice is the sam
throughout the country.
Wives could make deposits in thei
own name and receive the same, ant
children twelve years of age coult
have the same privileges as wer'
they of age. Saving among small
children would be encouraged by tn,
use of stamps which could be pur
chased at the ~postoffices in denomi
nations of five and ten cents anC
affixed to a furnished card, a card
containing stamps representing 81
being subject to deposit the same az
the coin.
The foregoing is a brief statement
of the provisions of the bill advoca.
ted by the Record and which has
been Endorsed in the main points by
financiers and statesmen of the coun.
try. The plan would necessarily
grow greatly in the hands OF the
postoffice department, with which
would be left the carrying on of the
work.
An official of Ottawa, Can. gives
the following succinct summary OF
the advantages of such banks to the
people:
Ffrst-To the people personally:
1. Absolute security from loss.
2. Convenience OF making deposits.
3. Repayment not affected by
change of residence.
4. Safety against personation and
fraud.
8. Prevention Of poverty or tenn
porary want by developing habits Of