Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1897-11-18
FOR POSTAL BANKS.
The Postmaster General Advocates
Postal Savings Dep ositories.
THEY ARE A SUCCESS IN EUROPE.
Tho Increase in the Postal Deficit Ref &C.
ton OF the Depressed Business CondI-
tIOns of the Country-Th The Rural
Free Delivery Experiment.

nual report of Postmaster General
James A. Gary to the president was
made public last night. Its feature is
the strong advocacy of postal savings
repositories. He says the time is ripe
for the establishment, and that the
addition of well organized system
would confer great boon upon large
number of people, and ultimately be of
inestimable benefit to the whole coun-
try. The portion on the subject of
postal savings, in brief, follows:
Many millions of dollars are undoubtedly Sc
GREETED by people who have little or no conf
dence In ordinary securities and monetary In
stitutlons organized by private citizens It is
dead capital But il its owners could be in
spired with absolute confidence in the security
of an investment, 1t is altogether probable that
the bulk Of this fund would find its way into the
channels OF trade and commerce II the gov
eminent undertook this task the service would
undoubtedly be gladly accepted by the people
Their faith In the government is unbOunded
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 advantage 1t would tend to cultivate
thrift in q large class, realizing the advantage
wastefully and uselessly expanding; it would
tend to better relationship-bring into closer
relationship the government and its citizens
and develop practical and enduring patriotism
This growth Of patriotic sentiment and good
citizenship constitute powerful appeal to
craftsmanship to make way for these benefit
cent 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, OOO,CO in savings accumu-
lated during IS years and In ten years no fewer
than 10000 Hawaiian depositors saved nearly
Sl,000000 Deposits In Canada in 20 years eX-
ceeded So, 900 900. These vast accumuations
have been made with the least possible loss to
the governments, which guarantee their repay
m ent, and with u minimum of cost to the mil
lions Of depositors, More than 1000 postal
savings accounts in European offices are held
by minors and over two-thirds by the most
humble callings 1t is essentially the bank Of
this class. Postal savings would not conflict
with those of savings banks, but would encour-
age savings rather than accumuations. The
conversion Of money order offices into savings
repositories would soon afford indefinitely
more facility for receiving interest-bearing de-
positS than the interest paying banks do now.
The most aggressive opponents are among the
private institutions engaged in somewhat sim
liar enterprises, though associations of the
larger cities recognize in 1t u valuable feeder to
the financial currents Of the country, Security,
and not the rate of interest is the primary and
essential condition of such u system; and bonds
of states, counties and municipalities and real
estate furnishes an illimitabe field.
Comparing other countries, the post
master general says nearly every
country permits its most popular coin
as the minimum amount of deposit,
varying from five cents in India to one
cent in Canada. Maximum deposits
vary from $685. in France to 2,435 in
New Zealand. Deposits over the
amount are non-interest bearing, and
in several countries the surplus is by
law invested in national bonds. Both
deposits and accounts are unusually
small. France made profit in 1895 of
$l70.000 in handling $500, 900 accounts,
aggregating $143, 900, 900, after paying
three per cent interest. Great Britain
earned surplus of $S3, 900, after pay
ing "a per cent. interest on $4S3, 000,-
900, made up of 6, 800, 900 accounts. The
average commission paid to post
masters is one cent per deposit. Any
account may be settled and withdrawn
from any depository in the country.
The telegraph is coming into use as a
means of withdrawal.
The revenues and expenditures for
the fiscal year ending June 80, 1899,
are: Total postal revenue for 1897,
$50, G65, 462.73; add five per cent. 81, 1885,
273. 10. Estimated revenue for 1898,
1886, 79S, 1855. So; add seven per cent. &c.
O75, 911.51. Total estimated revenue for
1899, 500, S74, 647,37; estimated expend-
itures for 1898, sos, 922, 76O; deficiency
for 1899 (estimated) So, 04S, 1898. Fol-
lowing is an abstract of the report:
The increase of the postal deficit for
1897 is largely a reflection of the de-
pressed business conditions which pre-.
vailed all over the United States the
first headquarters of that period.
There has been no extravaganza of ex-
penditures, 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
postmaster generals, is urged. AS to
this the postmaster general says: IF
this were done there would be an end
to postal deficits, and the service would
be enlarged and popularized by a
broad extension of the free delivery
without infringement upon the gem
eral resources of the government, and
eventually result in the much desired
reduction of letter postage to one cent
per ounce"
No method of perfect organization
of the postal service has proved more
effective than the consolidation of
post offices. Legislative restrictions
on its development are to be regretted
and report of the five-mile limit con-
solidation measure in the 1896 postal
appropriation bill is recommended.
The experimental rural free delivery
has been generously appreciated; few
expenditures have conferred greater
benefits in proportion, and it has un-
questionably proved a potent factor in
attaining what should be chief aim
of government, the granting of the
best possible postal facilities to the
farming class.