The Springfield 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!shment of postal savings banks:
"First-In order to encourage among
our people economy and thrift.
"Second-In order to afford a 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 it, 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 it.
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 Dur-
chaser, good for one year.
From study of the system which
is working SO satisfactorily in Canada
it Is believed that practically no addi-
uonal clerk hire is required in the va
rious postotfices, 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 $465,000,0OO have
been received and disbursed, with
loss to the government of not more
than $4,000. The total deposits in
postal savings banks aggregate $780,
OO0, 900.
1T is recommended that the post
master general be given authority to
designate all money order postofflces,
and such other postoffices as may be
deemed necessary, to receive deposits
Of money for savings; deposits to lie
accepted in even dollars, with 81 as
minimum, postmasters to be re-
QUired 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. 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
If ten.
THAT the money deposited in the
postal savings bank may return to the
channels of trade, authority is asked to
place it in the national banks which
are government repositories in the
states where the money is deposited in
the postoffices. In consultation with a
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 Postotiice
Department they would allow rate of
interest of 2h per cent AS the Post
office Department (governmenD is
preferred creditor, 1t would not demand
collateral from the banks in the gay
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
the security of the deposits.
Thus the principal object of The
savings banks will be to encourage hab-
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
tel to deposit his earnings In this
country, because after he has accumu-
ated 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 he
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 likali-
hood of becoming public charges.
Should, however his earnings remain
in the postal savings banks, the fact
that he has an interest in the govern
ment and something at stake will tend
to make him a more desirable citizen"