The Ordway new era., 1907-12-06
POSTMASTER GENERAL MEYER
STRONGLY URGES THEIR
ESTABLISHMENT.
TO ENCOURAGE THRIFT
GOVERNMENT COULD PAY TWO
PER CENT AND GET TWO AND
ONE HALF FROM BANKS.

"hohihStch' His diHudi iSpy's
Postmaster General Meyer urges The
desirabilty of postal savings banks.
The report says:
81 earnestly recommend the cstab-
lishment of postal savings banks:
''First-ln order to encourage among
our people economy and thrift.
"Sccond-In order to AFFORD 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 confi-
dence.
wherever II may be, this money
has lost its proper functions and the
business of the nation not only receives
no benefit from it. but even the pros
perity of the country suffers and lnay
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 IL has been demonstrated
that in the aggregate immense sums
of money have been boarded or sent
away by these people. In many in
stances II has been found that, for want
oi postal savings banks. money orders
are being bought payable to the pur-
chaser. good for one year.
From study of the system which
Is working so % tisfactorily in Canada
1t Is believed that practically no iddt-
tional clerk hire is required In the va
rious postoffices. 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
tEirty-ninc years S465 100000 have
been received and disbursed, with
less to the government of not more
than S25.OOO. The total deposits in
postal savings banks aggregate $780,
100000.
'It is recommended that the post
master general be given authority TO
designate all money order postotiices.
and such other postofTlces as may be
deemed necessary. to receive deposits
OF money for savings; deposits 10 lie
accepted in even dollars, with 81 as
n minimum. postmasters to be re-
QTired to receipt for such deposits in
the pass bc3ks 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 n 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 ac-
count opened in his name by parent
or guardian. but Withdrawals are not 20
be made until the child attains the age
OF ten.
THAT the money deposited in the
postal savings bank may return to the
channels of trade, authority is asked 10
place it in the national banks whicn
are government repositories In the
states where the money is deposited in
the postoffices. In consultation with q
number of presidents of national banks
in various parts of the country l nave
been assured that on special deposits
Of this character from the Postomce
Department they would allow a rate OF
interest of 2k per cent. AS the Post
office Department government is q
preferred creditor, 1t would not demand
collateral from the banks In the .ay
of bonds. There would be the safe
guard of having the comptroller OF the
currency report regularly on the stand
ing of the banks that are used as de-
positories and the double liability OF
! the stockholders of the national banks
would be an additional assurance OF
tho security of the deposits.
THUS the principal object OF tne
savings banks will be to encourage hao-
its of economy, not only among our
own men and women, as well as chill
dren of ten years of age or over. who
live In places remote from any bank,
but also to encourage the foreign set
tier to deposit his earnings In this
country. because after he has accunu-
lated a few hundred dollars he will not
be content to receive merely two per
cent interest, but will possibly seek to
purchase a home, and the moment ne
ACQUIRES real property here he becomes
a more conservative citizen. Is actively
interested in the affairs OF the nation
and at the same time places himself
and his dependents beyond the likeii-
hood Of becoming public charges
should, however, his earnings remain
in tho postal savings banks. the facs
that he has an interest In the govern
ment and something at stake will teDd
to make him a more desirable citizen