The Black Hills union and western stock review. [volume] (Rapid City, S.D.) 1904-19??, 1907-08-23
Postal Savings Banks.

In his annual report now in pre-
paration Postmaster Gene. Meyer
will urge the establishment in the
United States of the postal savings
system. This will not be a new
recommendation from the head Of
the department. The subject was
discussed in the report of Postmaster
General Cresswell in 1871, during
President Grants administration,
the argument was strongly in favor
Of the adoption of the system. Nearly
every postmaster general since then
has favored this extension of the pos
tai service, and pointed to it's sue
cess and rapid growth abroad. Eng
land led off in postal savings in 1861,
with Mr.. Gladstone as one of the
most active advocates of this means
of encouraging thrift among the
class who keep no bank account, and
whose ability to save is restricted
to the smallest coins. In forty-ive
years the postal %depositors in Eng
land and Wales had grown to over
$500, 900, with savings of $685.
00O, 1000. The postal deposits in
Scotland, Ireland, Canada, Australia
and British colonies generally
amounted to s376,OOO,O 900 more.
Other countries that carry on the
postal savings system are France,
Austria, Hungary, Italy, Neither
lands, Sweden and Belgium.
There is a large class of citizens
in every country who distrust banks
or dislike to go to them with small
sums. The result is that a great
deal of money is kept out Of circu-
lation by boarding. In the United
States the amount thus carried on
the person or secreted is not less
, than $500, OO0, 900. It's owners
would be willing to let the govern
ment have the money, and there
: would be no panicky runs. At any
%postofice funds a be withdrawn
= at any time, SO the account is vir
tualay a national letter of credit
In England the rate of interest paiG
is 2 1-2 per cent, and the minimum
, deposit received is one shilling
. though there is a provision for pen
ny savings, by means Of cards OF
which stamps are affixed a penny a
a time up to a shilling, when a regu
lar deposit can be made. No one car
deposit more than $3.50 In any one
year, nor more than $3.50 as a to
tai, and when the principal and inter
est reach $1,000 interest ceases
, which rule induces the depositor tt
invest his $1,000 otherwise. BY thu
British system the empire is the
bank, with every postofice a brancl
!, the p%ostoffices the people may in
vest in national securities, insure
their lives, or buy government an
nuities.
In the United States one of tn
y problems connected with postal say
ings would be what to do with TIL
money deposited. AS matters STAN
y the government has a surplus o
cash. 1t can borrow at two percent
:. To "pay off" the public debt by
$ ; method that would continue it ii
9 another form at the same interest
:, would not be advisable, for severa
u reasons. In other countries tn
money is Invested in government
y securities. During the term 0
> Postmaster General Wanamaker sug
gested that the deposits be loane
y by the secretary of the treasury t
the national banks at a rate of in
terest to be fixed by him, and to b
q nrefarred claim aainst the asset
of the banks. Postmaster Genera
u Cresswell proposed to apply tn
> money to the purchase of TELEGRAPH
) lines. Other postal officials conside
state and municipal bonds a goo
Il security and investment for the Ma
!, tional GoveInment. Postmiaste:
u !. General Meyers views in this i'm
portant respect will be awaited witt
interest.-Globe Democrat.