The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-11-15
POSTAL SAVINGS BANK PLAN.
GARY MAKES 1T THE FEATURE OF
HIS ANNUAL REPORT.

The Time Looked Upon as Ripe for
the Establishment OF the Deposi-
tOries-MIIIOns OF Dollars Now
secreted would Find Their Way
Into the Channels of business.
Would Also Tend to Better Citizen-
ship and Develop Practical and
Enduring Patriotism.
Washington, Nov 14.-The first annual
report OF Postmaster General James A.
Gary to the President was made public
tonight. Its feature is the strong ad-
vocacy Of the postal savings repositories,
a scheme over which Postmaster General
formulation of plans to present to the
President and congress-
He says the time is ripe for their es-
tablshment, and that the adoption of a
well-orsanlzed system would confer a
great boon upon large number of people
and ultimately be of inestimable benefit to
the whole country.
The estimates of the revenues and ex-
penditures for the fiscal year ending June
30, 1899, are: Total postal revenue for 1897,
$50, 665, ,462.73; add per cent, $41S3, ,273.13.
add Z per cent, $6,O75, ,911. 81. Total esti-
mated revenue for 1899, $92s74,e ,ef7S7; es-
timated expenditures for 1899, $9S, ,992, ,7eo. 90;
deficiency for 1899. estimated. s60ls. 1928.
No method Of perfecting the organiza-
tion of the postal service has proved more
effective than the consolidation of post
offices. The experimental rural free de-
livery has been generously appreciated.
The report reviews in detail the opera
tions of the various branches of the de-
partment.
The portion on the subject of postal saw
ings banks. in brief, follows: Many mill
lions OF dollars are undoubtedly secreted by
people who have little or no confidence in
ordinary securities and monetary institu-
tions organized by private citizens. II Is
dead capital, but If its owners could be in
spired with absolute confidence in the Sc
curity of an investment II Is altogether
probable that the bulk of this fund would
find It's way into the channels of trade and
commerce. IL the government undertook
this task, the service would undoubtedly
be gladly accepted by the people. Their
faith In the government is unbounded
Iher 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 70 cultivate thrift In a large
class; realizing the advantage of deposit
ing with the government instead of waste-
fully and uselessly expending; Ii would
tend TO better citizenship, bringing into
closer relationship the government and
It's citizens and developing practical and
enduring patriotism.
This growth of patriotic sentiment and
good citizenship constitute a powerful ap-
u In To nQI 70
these beneticient consequences. The prop
osition as an accomplished fact in nearly
every country in Europe in the British dee
pendencies of both hemispheres, and even
In Hawaii
In Great Britain, 100000 deposItors have
upward Of $55O,0O0,OOO in savings accumu-
lated during the past five years, and in
ten years fewer than 10000 Hawaiian de-
positors saved nearly $l,OO,OOO Deposits
IN Canada In twenty years exceeded $22,-
100000. These vast accumuations have
been made with the least possible loss to
the governments, which guarantees their
repayment and with a minimum of cost
to the millions Of depositors.
More than a third Of the postal savings
accounts in European offices are held by
minors, and over two-thrds by the most
humble callings 1t is essentially the bank
of this class. Postal savings would NOT
conflict with these savings banks but
would encourage savings rather than ac-
cumulatonS. The conversion of money
order offices into savings repositories
would soon afford infinitely more facility
for receiving interest bearing deposits
than the interest paying banks do now.
The most aggressive opponents are among
the private institutions engaged in some-
what similar enterprises, though assoca-
tions of the larger cities recognize 1t as
an available feeder to the financial cur
rents 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 municipali-
Ties and real estate furnish an illimitable
field.
Comparing Other countries the post
master general says nearly every country
permits It's most popular coin as the min
imum amount Of the deposit, varying from
cents in India to 81 In Canada. Maximum
deposits vary from $2S5 In France to $2 435
in New Zealand Deposits over that
amount are non-interest bearing and in
several countries the surplus is by law in
vested in national bonds. Both deposits
and accounts are usually small. France
made profit IN 1895 of 600 in handling
100000 accounts aggregating $f13000,000
after paying three per cent. interest.
Great Britain earned a surplus of $4,000,
after paying 21s per cent. interest on $780,
100000 made up of $500, 600 accounts. The
average commission paid to postmasters is
one cent per deposit. Any account may
be settled and Withdrawn from another
depository in the country, the telegraph
coming into use as a means of with
drawal.
n