The Springfield herald., 1897-11-19
FOR SAVINGS BANKS.
GOVERNMENT SHOULD RUN
THEM.
Po~tmaster General Gary Prepares Re-
port Strongly Urging This Innovation
Says 1t Would He Popular.

ntil report oil Iostll.ister Senefsii
James A. Gary 10 the president WAS
made public tonight. Its feature is the
strong advocacy of postal savings de
positories as scheme over which Post
master General Gary has worked for
several months in the formulation of
plans to present to the President and
Congress. He says theTnme is ripe for
the establishment and tnst the addition
of a well organized system would COLI
fer great boon upon large number
of people. and ultimately I've of ines
Unable benefit 10 the whole country.
The estimates of revenue and eNpend-
itures for the fiscal year ending June
30, 1899. are:
Total postal revenue for 1897. $S2.-
665, ,462 10: add per cent. 81. l33,2i3.1 .13.
Estimated revenue for 1898, $50. 1885,
T35. Sc; add per cent. S6,OI5.911 81.
Total estimates of revenue for 1899,
500, ,S14 .647.37: estimated expenditures
for 1898. sos, ,922. .7GO: deficiency for
1899. estimated. S6OiS 112.63. Follow
ing 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-
vniled all over the United States the
first three-Iuarters of that period.
There has been no extravaganza of
expenditures. save that obligated by
law Reiterating the injustice inflicted
both upon the postal revenues and the
people by second-cEss mail matter.
carriage regulations. the enactment by
Congress of some measure to remedy
rhe wrong, similarly pointed out by
past postmasters general. is urged. As
to rhis the postmaster general says:
'1f this were done there would be an
end TO postal deficits. and the service
could be enlarged and popularzed by Il
bread extension of free delivery with
out infringement upon the general re-
sources of the government and event
ually result in the much-desired rerluc-
ton OF letter postage of cent per
ounce.
NO method of perfect organization of
the postal service has proved more eff
fective tban the consolidation Of post
offices. Legislative restrictions on its
development are to he regretted. and n
report of the five-mfle limit consolida
tiOn measure in the 1896 postal appro-
pr-iation bill is recommended.
"1ha experimental rural free dcliv
cry has been generously appreciated:
few expenditures have conferred great
er benefits in proportion. and it has I'M
OueStionahly proved n potent factor in
attaining what should be a chief aim
of government. the granting of the best
DisSlIfih Ilslii w lnt
ip~ class.
The report reviews IN detail the opera
tions of the various branches cf the
hcpartmcnt. The portion on thc sub
icct of postal savings. in brief. follows:
Many millions of dollars is unsloubt-
odly secrcted by people who have lit
lie or no confidence in ordinary sccuri-
ties and monetary institutions organ
ized by private citizens. 1t is dead can
tal. but if its owners could he inspired
with absolute confidence in the security
of an investment it is altogether prob
able that the bulk of this fund would
find its way into the channels OF trade
and commerce. If the government un-
dertook this task the service would un-
dpubtedly he gladly accepted by the
people. Their faith IN the government
is unboundcd Their little savings,
which separately could hardly he put
mt interest would amount In the aG
gregltc to a sum that could he invested
to their advantage. 1t would tend to
cultivate thrift in Il large class. realiz-
ing the advantage of depositing with
the government instead of wastefully
and uselessly expending. 1t would tend
to better relationship: TO bring into
closer relationship the government and
its citizens. and developing practical
and enduring patriotism. This growth
or patriotic sentiment and good citi-
zenship constitute powerful appeal TO
craftsmanship to make a way for these
bencficient consequences.
The proposition is an accomplished
fact in nearly every country in Europe.
in rhe British dependencies of both
hcmispheres and even in Hawaii. In
Great Britain 7OO0.00O depostors have
upward of SIJO.GOO. 600 in savings ac-
cumu1ated during thrty-five years. and
in ten years fewer than 10000 Hawai-
iian depositors saved nearly S1.0e0.O0o.
Deposits in Canada In twenty years
exceeded S22.0OO.0O0. These vast ac
cumulations have heen made with the
least possible less to the governments
which guarantee their repayment, and
with n minimum of cost TO the millions
of depositors More than thousand
postal savings accounts in European
offices are held by minors and over two
THIRDS by the most humble c.lllingS. 1t
|. is essentially the bank of this class.
Postal savings would not conflict with
those savings banks. hut would encour-
age savings rather than accumr.af1ns.
| The conversion of money ord'7 offices
into savings repositories would soon
| afford indefinitely more facility for re
| ceivng interest bearing deposits than
the interest paying banas do now. The
most aggressive opponents are among
the private institutions engaged in
somewhat similar enterprises. Though
associations of The larger cities recog-
nize in it n valuable feeder to the fnan-
c'fnl currents of the country.
Security and not the rate OF interest
is the primary and essential condition
of such a system: and honds of states.
counties and municipalities md rcHI cs-
tate furnish an illimital|e field. C1:n-
pairing other countries, the postmaster
general says nearly every country per-
mits its most nonular coin rs the min
imum amount of deposit. carrying from
| : cents in India TO l cent in Canada.
Maximum depnSits vary from S2SI in
France to S2.l35 in New Zealand De
nosits over the amount are non-intcrest
bearing. and in several countries the
surplus is nv law invested in national
bonds. Roth deDnsits and accounts are
usually smnll. France made profit in
1Sa5 of $4,000 in handling 2.5O0.O0O
accounts acgregnting s1i3 100000. att
or nnvinr 2 ncr cent. interest. Great
Rrit;in earned surnlus Of $4,000 nft
or nlving 2ih per cent interest on SIS.',-
100000. made IN of GT0Hn0 accounts.
= l.