The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-08-22
POSTAL SAVINGS BANKS.
senator buffers Bill and Its PrOvi-
sions-An Old System

Robert p. Porter, in PHILADELPHIA INQUIRER
Senator Marion Butler has introduced a
pllI Ior the establishment of postal savings
Dahks, which will, l hope meet with bet
ter late than that introduced in the House
nearly twenty years ago by Mr. Weddell
In brlef Senator Buffers bill provides that
an account may be opened by any person.
including married women and minors by
1de deposit of an amount of not less than
81 cents, although after the account is
opened as small an amount as 10 cents may
pc deposited and credited in the pass book
IN order that smaller amounts may be
saved 10 be deposited postal savings card
may be pun chased for | cent Cthe cost of
the card to be credited on the depositor's
account). on which may be attached stamps
70 the amount of 10 cents or multiple there
or for deposit On every deposit amounting
to 30 or multiple thereof interest at the
rate OF Z12 per, cent. per annum from the
hrst of the calendar month following de-
post Will be allowed, check for the same
10 be drawn by the postmaster general on
demand of the depositor, payable at any
postal savings bank office. Interest. how
ever, VIII not be allowed on the deposits
or any one person which may exceed $500
accounts when they exceed the sum of ST.,
700. After a depositor has had $40 or more
to his credit for three months he may, if
he so desires, make application to the post
master general that United States bonds,
of the denominations of $40, $50 or 800, &C.
cordlng to the amount to his credit be
issued to him in lieu of his deposit, such
bonds to bear interest at the rate of "a
per cent. per annum, and to be known as
united states postal savings BONDS,
The success which has attended the es-
Enlistment of this popular system of saw
ing, both in England and on the continent,
has been so remarkable that the wonder
is that it has not commended itself to the
people of the United States Although
Great Britain was the first to establish
savings banks, it took forty-four years of
agitation before any legislation : as enact
ed, and then it was only, as / showed in
previous letter on this subject, through the
exertions of Mr.. Gladstone, then chancel-
a
in May, 1861 On the 10th day of Septem-
ber 1861, the postoffice savings banks were
opened to depOsitOrS, and on that day 430
deposits were received. AT the end of the
following year 2,535 offices were open, and
nearly $10,00,O00 had accumulated, while
ten years later, so manifest was the mold
upon popular regard, the number of de-
positors had increased to nearly one and
a half millions, and the amount of deposits,
including interest, reached something more
than $95 900 600. The end of the year 1856,
which is the latest period [ have figures
covering, found the number of depositors
increased to 37S1, 421, and the amount to
their credit standing at $3.50 100000 in round
figures At this time nearly every money
order postoffice In the kingdom had saw
ings bank attachment the offices number
ing S.351. If reckoned from the number of
accounts open at the end of the year, one
person in every ten of the population had
availed himself of the privileges of these
banks, or if reckoned from the number
of deposits, about one person in every FIVE.
1t is especially interesting to note that
great prepOnderance of the depOSitOrS were
of the poorer classes, indicating that the
benefits of the system were being enjoyed
by those for whom it was intended and
that the object of the promoters of the
scheme had been fully realized. 1t is
worthy of note that, including the eXtraor-
binary expense of putting the system into
operation the average percentage of cost of
management from 1861 to 1886 to the total
funds in possession of the postotf1ce savings
banks is something less than hve-eighths
of per cent. Great Britain has long since
extended this system of banks to her col
n1oia nd al vim OC ~ n a nG
tabliShed institution in Canada and Aus
tralia We also find that France Germany,
Austria, Italy, Belgium, Holland and Japan
all have in successful operation this Sys-
tenn of savings banks.
In France the postoffices act as branches
of the CaiSse National d Epargne, which
was organized and received its charter
from the state in 1882 In the first eight
years from the date of it's establishment
the Caisse National d'Epargne shows by
it's accounts the record of Il 1863, 1856 transac-
tions resulting in the passing through its
hands of $416,45S 1885, AZ. In 1882 there were
1924 postoffices authorized to receive and
disburse the banks moneys; in 1883, 6193;
in 1884, CATS; in 1855, 6620; in 1856 6,449; in
1887, 6712; in 1888 6765; in 1889, 6792, and in
1890 6H7 on Dec 81 1890 there were 49,
6S2 individual deposits amounting to 81 ana
under 800 $40 of sums between 81 and $50,
165 345 of 800 to $40, 500 from $40 to 500,
1861 $50 from $500 to $500: 127 S42 from 900 to
$500, and a, 964 from $500 upward. 1t is evil
dent from this that out of l,o24 6SS deposit
ors whose names are on the, BOOKS, over
half are credited with amounts under $50,
and in this the institution achieves it's pur-
pose, namely. that of serving the working
classes. who are unable to place their
money in the more pretentious concerns oo
In AuStria-Hungary, at the END or 1882
the first decade of postal savings banks in
that country, the number of deposltors3 s., WAS as
913 447. with a total capital of 20 $50. ivy
forms. The average capital during that
period rose from II forms to 81 horlns.
The establishment in every postotflce IN
the United States of postal savings ba tla1i
with the opportunity affordeq even c 3llias
depositors of investing in United states
bonds, would do much to check dlscontent
and counteract the socialistfc tendency OF
the times and be the greatest antldote 10
Organism and all that appertalns thereto'
Since writing the above l learn that sen
ator Butler succeeded in passing a reS2l III
tionsthrough the Senate a few DAYS ago o.
reCting the secretary of state TO send CIR
GUAR letter to our diplomatic and consular
representatives abroad similar TO that
issued by Secretary Blaine in 1881, instruct-
ing them to report on the work IN pr"uS-
ress of postal savings banks in forelgn
countries. Senator Butler informs me tn ma.
he intends to push this matter vlgoro,uS.y1,
and homes to pass a postal savings p tnh
bin through the Senate at the next seSSioil'