Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-11-15
POSTAL SAVINGS BANKS
The Chief Topic Of the Postmaster Generals
Report.
Beneflt to the Country at Large OF the
Establishment OF Such q Systen
Minutely Described.

L AM9tchy 11CBCEkUcOs
Postmaster General Gary has made his
first annual report to the President. AS
The Star months ago indicated. Mr.. Gary
strongly advocates the establishment Of
postal savings banks in connection with
the post offices of the country. He says
the Inauguration of such banks would be
| q great benefit to the country at large and
would assist many people in their efforts
to lay aside something for a rainy day.
| The Postal DeAcit.
The estimates of the revenues and ex-
| penditures for the fiscal year ending June
30, 1890. are: Total postal revenue for 1897.
$50, 665. 462. %; add Per cent, 81, 133. 27S.1 H.
Estimated revenue for 1885, $50, 79S. 49,. Sc;
| add per cent, $6,075, 911.51. Total esti-
mated revenue for 1899. $92.S746I7.37; esti-
| mated expenditures for 1899. $9S,322. 100;
| deficiency for $780, estimated $6.04S. 112Gs.
| The increase of the postal deficit for 1897
! is largely a reflex of the depressed business
| conditions which prevailed all over the UNI
| ted states during the first three-quarters OF
that period, he says. There has been no
| extravaganza of expenditure, save that
obligated by law. Reiterating the injustice
inflicted both upon the postal revenues and
| the people by second-class mail matter
carriage regulations, the enactment by Con-
gress of some measure to remedy the
wrong similarly pointed out by past Post
masters General. is urged AS to this the
Postmaster General says: If this Were
, done there would be an end to postal de,
ficits, and the service could be enlarged
| and popl larized by broad extension OF
free delivery without infringement upon
the general resources Of the government.
and eventually result In the much-deslred
reduction of letter postage to cent per
ounce"
No method of perfecting the organization
80 -k.l has cd q T.
fective than the consolidation Of post Of
fees Legislative restrictions on Its develop
ment are to be regretted and repeal OF
the ffve-mile limit consolidation measure In
the 1896 postal appropriation bill is recon-
mended.
TIE experimental rural free delivery has
been generously appreciated few expendi-
lures have conferred greater benefits in
proportion, and 1t has unquest.onably prov
ed a potent factor in attaining what should
be a chief aim of government, the granting
of the best possible postal facilities to the
farming class. The report reviews in detail
the operations of the various branches of
the department.
Postal Savings Banks.
The portion on the subject of postal saw
inss, in brief, follows:
Many millions of dollars are undoubted-
ly secreted by people who have little or no
confidence In ordinary securities and none
tary institutions organized by private citi-
zens. 1t is dead capital but if its owners
could be inspired with absolute confidence
in the security of an Investment it is al
together probable that the bulk of this
fund would find its way into the channels
of trade and commerce. If the government
undertook this task the service would I'M
doubtedly be gladly accepted by the people.
Their faith in the government is unbound
ed Their little savings, which separately
could hardly be put out at interest would
amount In the aggregate to a sum that
tod fn hot
would tend to cultivate thrift in a large
class; realizing the advantage of depositing
with the government instead of wastefully
and uselessly expending; it would tend to
better citizenship bringing into closer re-
lationship the government and it's citizens
ana deVeloping practical and enduring pa
|. lriotlsm This growth of patriotic senti-
ment and good citizenship constitutes a
powerful appeal to craftsmanship to make
a way for these beneficent consequences.
L ne proposition is accomplished fact in
i,es,rly every country in Europe; in the
British dependencies of both hemisnheres
and even in Hawaii.
Postal Banks I'm Great Britain.
In Great Britain 1000 900 depositors
have upward of $3.50. 900 900 in savings ac-
cumulated during thrty-five years: and in
Ten years fewer than 10000 Hawaiian de-
posters saved nearly $1,O0OOOO Deposits
III canada In twenty years exceeded $22-
ooe,o0o These vast Accommodations have
been made with the least possible loss to
the governments which guarantee their
repayment and with minimum of cost to
the millions of depositors. More than a
thlrd OF the postal savings accounts in Eu-
ropean offices are held by minors and over
two-thirds by the most humble caliings
1t is essentially the bank of this class Pos
tai savings would not conflict with these
savings banks, but would encourage saw
lngs rather Than accommodations. The con-
version of money order offices into savings
repositories would afford infinitely
more faciht" for receiving interest-bearing
deposits than the interest-paying banks do
now. The most aggressive opponents are
among the private institutions engaged in
somewhat similar enterprises, though asso-
Citations of the larger cities recognize in 1t
valuable feeder to the financial currents
OF the country. Security and not the rate
OF interest is the primary and essential
condition of such a system; and bonds of
states, counties and municipalities and real
estate furnish an illimitable field. Com
pairing other countries, the Postmaster
General says nearly every country permits
it's most popular coin as the minimum
amount of deposit, varying from 5 cents in
India to 81 in Canada. Maximum deposits
vary from $2S5 in France to 81, 455 in New
Zealand. Deposits over that amount are
Notwithstanding, and in several coun-
tries the surplus is by law invested in ma
tional bonds. Both deposits and accounts
are usually small. France made profit in
1885 Of $4,000 in handling 100000 ac-
counts, aggregating s1I3.000,000 after
paying 3 per cent interest. Great Britain
earned surplus of $4,000, after paying 212
per cent interest on $3.50, 000, 900, made up of
6,j00,000 accounts. The average commits
sion paid to postmasters Is l cent per de-
post. Any account may be settled and
withdrawn from any depository in the
country. Tie telegraph is coming into use
as means of withdrawal"