Los Angeles herald., 1907-11-11
A LESSON IN BANKING

MERICA has learned more than
II one lesson in details of govern
4 ment from New Zealand, and II
may find word of encouragement and
advice regarding the proposed estab-
lishment of a system Of postal savings
banks from the young country in the
Pacific. Consul General Prickett, writ
ing from Auckland on the operations
of the government postal savings banks
in New Zealand, says:
Zone of the greatest aids to the
financial power of France, with it's
annual investing surplus of $3.50, ,O0O, 900
to $500,000,000 is the facility with which
its people can invest their small saw
ings with absolute security. The gov
ernment system of postal savings banks
enables investors to deposit small sums
in the postoffices, upon which they
draw interest, with the right to with
draw them at will.
New Zealand is a young country.
but it has adopted this system with the
most gratifying success. Postal saw
ings banks were established by the
colonial government in 1867. On De-
cember 81. 1906, there were $40 post
offices open for the transaction of saw
ings bank business, with 29S,746 ac-
counts, covering a total deposit of $4s,-
766,325, an average of a little over
S166.50 to each account, and represent
ing sum equal to $56 head for the
entire population of the colony.
Deposits may be made of shilling
GA 1-3 cents) upward, but interest is
reckoned only on complete pounds
($4S6). Interest is allowed from month
TO month, commencing with the first
day. Deposits made on the second and
days do not draw interest
until the first of the month succeed
ing. Accounts may be drawn upon at
any time, but interest is allowed on
the sum withdrawn only up to the first
lay of the month of withdrawal. The
due to each depositor is calcu-
lated to December 81 of each year, and
Is then added to the principal. The rate
Of interest at present is 31s per cent up
to $500; from $500 to $4,000, per cent;
above $4,000 no interest is paid. Chari-
able institutions, however, may draw
interest at the maximum rate for any
they may desire to deposit.
1.-THE $40 savings bank postoffices
average depository for every 1916 per-
sons, and of that number 54S have a
savings bank account, making the pro-
portion of accounts per head of popu-
alton nearly one in three. If these pro-
portions were applied to the United
states with a population of, say, 3d.
100000, there would be in that country
$1,000 postal depositaries, with 27,400,000
accounts, covering a deposit in round
numbers of $4,000, 100000. But there
we're in the United States in 1906 only
319 savings banks, with 8,027,192 ac-
counts, and total deposits of $3,4S2, ,137,-
9S. This is an average of S433.S0 to |
ZACH account, indicating that the saw
ngs banks are being used by people |
If comparatively large means, and that
persons having small sums which they
might deposit under favorable condi-
lions do not find convenient deposit
aries. OF the 29S.746 accounts in New
Zealand 212,6O5 had deposits not exceed
ng $780,"
If such a showing as this can be |
made by such relatively small coun-
ry as New Zealand, to what proper
ions might not somewhat similar
ystem in America attain?
If the inhabitants of that country
eep nearly $5OOOO,O0O Cor possibly con-
iderably more now in their postal saw
1gs banks, is it not reasonable to ex-
ect that the people of the United
tates would turn over to the federal
overnment for safe keeping a sum
astlv in exceSs of that amount7 |,