The state herald., 1907-12-06
WANTS POSTAL
SAVINGS BANKS
POSTMASTER GENERAL MEYER
STRONGLY URGES THEIR
ESTABLISHMENT.
TO ENCOURAGE THRIFT
GOVERNMENT COULD PAY TWO
PER CENT AND GET TWO AND
ONE HALF FROM BANKS.

Washington.-In his annual report
Postmaster General Meyer urges the
desirability of postal savings banks
The report says:
II earnestly recommend the estab.
l!shmcnt of postal savings banks:
"First-In order TO encourage among
our people economy and thrift.
Second-ln order to afford n place
OF deposit free from any possibility OF
doubt or suspicion for vast sums of
money which might otherwise be
boarded and kept out of circulation
through ignorance or lack of conf.
dence.
Wherever 1t may be, this money
has lost its proper functions and the
business Of the nation not only receives
no benefit from 1t, but even the pros.
perity OF the country suffers and may
be eventually destroyed. Money de.
posted in postal savings banks would
be absolutely safe. as the government
would be back of 1t.
More than 100000 of immigrants
landed in this country during the past
ten years 1t has been demonstrated
that in the aggregate immense sums
OF money have been boarded or sent
away by these people. In many in.
stances 1t has been found that, for want
OF postal savings banks, money orders
are being bought payable to the pur-
chaser, good for one year.
From n study of the system which
Is working so % satisfactorily in Canada
1t Is believed that practically no iddi.
uonal clerk hire is required In the va
rious postoiilces. the entries being
made by the money order clerk. That
the postal savings bank business can
be handled with safety Is best attes:ed
By the results in Canada, where in
thirty-nine years $465.000,000 have
been received and disbursed, with n
loss to the government OF not more
than $4,000. The total deposits in
postal savings banks aggregate $780,.
O0O 900.
1T Is recommended that the post
master general be given authority to
designate all money order postofiices.
and such other postofiices rs may be
deemed necessary. to receive deposits
OF money for savings: deposits TO lie
accepted In even dollars. with 81 us
minimum. postmasters to be re-
quircd to receipt for such deposits in
the pass books OF the depositors and
to make daily reports thereof to the
postmaster general. who will acknowl-
edge receipts OF the deposits direct to
the patrons, money deposited In the
postal savings banks not to be liable
To demand. seizure or detention unler
legal processes against the depositor
Withdrawals may be made at any time
subject TO certain regulations.
"On deposits made In postal savings
banks rate of Interest of two per cent
per annum Is suggested, the deposits
TO be limited To $500 by any one per
son: any individual In the United
States ten years old or more TO be per-
mitted to open an account In his own
name and deposit To his credit an
amount not In excess OF $500. A child
under ten years OF age to have an nc.
count opened In his name by parent
or guardian. but Withdrawals are not TO
be made until the child at,ains the age
OF ten.
That the money deposited In tho
postal savings bank may return to tho
channels OF trade. authority is asked TO
place II In the national banks which
are government Repositories In tho
states where the money is deposited In
the postofficcs. In consultation with a
number OF presidents OF national banks
In various parts OF the country iave
been assured that on special deposits
of this character from the Postofiicc
Department they would allow a rate Of
interest Of 2H per cent. As the Poat.
Office Department tgovernment) In n
preferred creditor. II would not demand
collateral from the banks In the Say
: OF bonds, There would be the safe.
guard OF having the comptroller OF tho
currency report regularly on tho stand
Ing OF tho banks that are used ms de.
|, positorioa and the double liability Of
the stockholders Of the national banks
would be an additional assurance Of
the security Of the deposits.
Thus the principal object Of The
savings banks will be TO encourage hab.
!, It's Of economy. not only among our
, own men and women. M well m chil.
drcn OF ten years OF age or over. who
live In places remote from any bank.
, but also 10 encourage the foreign nct.
ti.i 10 deposit his earnings In this
country. because after h. has areunu.
lated a few hundred dollars he will not
be content TO receive merely two per
cent interest. but will possibly seek to
purchase n home. and the moment he
acquires real property here be- becomes
a more conservative citizen. iH actively
interested In the af'iairH Of the nation
and at the same time places himself
7 and hia dependents beyond the iik-li'
hood Of becoming public chhrgea,
Should. however. his earnings remain
In tho postal savings banks. tho fac,
tina, he has nb interest In tho govern
ment and something nj stake will tend
) TO make him more desirable citizen. g