The citizen. (Frederick City, Md.) 1895-1923, 1897-11-19
FREDERICK CITY Md FRIDAY MORNING. NOVEMBER 49, 1897
POSTOFFICE BANKS.
Gary's Plan to Help the Peo-
pie Save Money.
THE POSTMASTER GENERAL S REPORT
Recommends the Establishment of Postal
Savings Depositories-The System De-
fined In Detail-How 1t Works
In Other Countries.

hucU Az nuW ~ w oNRo
In Other Countries.
WASHINGTON, Nov. 1.-THE first
annual report of Postmaster General
James A. Gary to the president has
been made public. Its feature is the
strong advocacy OF postal savings de-
positories, a scheme over which Post
master General Gary has worked for
many months in the formulation OF
plans to present to the president and
congress. He says the time is ripe for
their establishment and that the adop-
ton of a well organized system would
confer great boon upon large num-
Der of people and ultimately be of in
estimable 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, $s2665, 46273; add per cent,
H,1SS,273.1S. Estimated revenue for 1898.
$50, 79S, 1856: add Z per cent, $6,075,911 81.
Total estimated revenue for 1899. $92,-
S4,647S7; estimated expenditures for
1899, 1922, go; deficiency for 1899, esti-
mated $6,O4S, 1898.
Following is an abstract of the re-
port:
The increase of the postal deficit for
1897 is largely a reflex of the depressed
business conditions which prevailed all
over the United States during the first
three-quarters of that period. There
has been no extravaganza of eXpendi-
ture, save that obligated by law. Reit-
efat inc tI,ai ,i, i,,A hot
the postal revenue and the people by
second class mail matter carriage regu-
lations, the enactment by congress of
some measure to remedy the wrong,
similarly pointed out by past postmas-
tiers general. is urged AS to this the
postmaster general says: IF this were
done, there would be an end to postal
deficits and the service could be en-
larged and popularized by broad ex-
tension of free delivery without in
fringement upon the general resources
of the government and eventually re-
suit in the much desired reduction of
letter postage to one cent per ounce"
No method of perfecting the organiZa-
ton of the pd0al service has proved
more effective than the consolidation of
postoffices. Legislative restrictions on
its development are to be regretted and
a repeal of the five mile limit consolida-
ton measure in the 1896 postal appro-
priation bill is recommended.
The experimental rural free delivery
has been generally appreciated; few ex-
penditures have conferred greater bene-
fits in proportion, and it has unques-
tionably proved potent factor in at
tanning what should be a chief aim of
government. the granting of the best
possible postal facilities to the family
class. The report reviews in detail the
operations of the various branches of
the department. The portion on the sub
ject of postal savings in brief. follows:
Many millions of dollars are undoubt-
eddy secreted by people who have little
or no confidence in ordinary securities
and monetary institutions organized by
private citizens. 1t is dead capital, but
If it's owners could be inspired with alb
, solute confidence in the security of an
! investment it is altogether probable
that the bulk of this fund would find
its way into the channels of trade and
commerce. If the government under
| took this task, the service would I'M
doubtedly be gladly accepted by the
people. Their faith in the government
IL 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 ad-
vantage 1t would tend to cultivate
| thrift in a large class, realizing the ad-
vantage of depositing with the govern
ment instead of wastefully and useless
" expanding it, it would tend to better
citizenship bringing into closer rela-
tionship the government and its citi-
zens and developing practical and en-
during patriotism. This growth of pa
| triotic sentiment and good citizenship
constitutes a powerful appeal to states
manship to make a way for these benef-
icent 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, 900 in savings ac-
cumulated during 80 years. and in ten
years fewer than 10000 Hawaiian de-
positors saved nearly $1,000000. These
vast accumulations have been made
with the least possible loss to the gov
ernments which guarantee their pay
ment and with a minimum cost to the
millions of depositors.
Postal savings would not conflict with
these savings banks. but would encour-
age savings rather than accumulations.
The conversion Of money order offices
into savings repositories would soon
afford infinitely more facility for receiv-
ing 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
associations of the larger cities recog-
nize in II valuable feeder to the finan-
cial currents of the country Security
and not the rate of interest is the pri-
mary and essential condition of such a
system, and bonds of states. counties
snd municipalities and real estate fur
nish an illimitable field. Comparing
other countries. the postmaster general
says nearly every country permits its
most popular coin as the minimum
amount of deposit. varying from five
cents in India to 81 in Canada Maxi
mum deposits vary from $685. in France
TO 50, 435 in New Zealand. Deposits over
that amount are noninterest bearing
and in several countries the surplus i:
by law invested in national bonds. Botf
deposits and accounts are usually small
! France made profit in 1895 of $40, 00(
in handling 100000 accounts, aggre
J eating $143, 100000, after paying pei
! cent interest. Great Britain earned
! surplus of $4,000 after paying 2h pc
/ cent interest on $3.50, 900, 900, made up o
$500 900 accounts The AVERAGE CON,