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

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
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 its suc-
cess and rapid growth abroad. Eng
with Mr.. Gladstone as one of the
most active advocates of this means
of encouraging thrift among tie
class who keep no bank account, and
whose ability to save is restricted
to the smallest coins. In forty-five
years the postal depositors in Eng
land and Wales had grown to over
SIS, 100000, with savings of $662,-
100000. The postal deposits in
Scotland, Ireland, Canada, Australia
and British colonies generally
amounted to s376,0OO,O 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 so to them with small
sums. The result is hat a great
deal of money is kept out Of circu-
lation by boarding. In the United
States tho amount thus carried on
the person or secreted is not less
than 100000 900 It's owners
would be willing to let the govern
ment have the money, and there
would be no panicky runs. At any
p%ostoffice funds can be withdrawn
at any time, SO the account is vir-
tually a national letter of credit
In England the rate Of interest paid
is 2 1-2 per cent, and the minimum
'SlJoolI lSSVlNSu I'D o1S
though there is a provision for pen.
ny savings, by ean of cards on
which stamps are affixed a penny al
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 lease
which rule induces the %depositor tt
invest his $1,000 otherwise. BY the
British system the empire is the
bank, with every postoffice a branch
and all postmasters agents. Through
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
problems connected with postal say
ings would be what to do with TIL
money deposited. AS matters stan,
the government has a surplus o
cash. 1t car borrow at two percent
To pay off" the public debt by
: method that would continue it i
another form at the same Interest
, would not be advisable. for severa
reasons. In other countries tn
!, money is f~nvaSxed in governmen
: securities. During the term {
> Postmaster General Wanamaker sus
:, gested that the deposits be loane
: by the secretary of the treasury t
the national banks at a rate of il
; terest to be fixed by him, and to /
a preferred claim aainst the asset
!, of the banks. Postmaster Gener;
: Cresswell proposed to apply tn
) money to the purchase of TELEGRAPH
; lines. Other postal officials conside
state and municipal bonds a goo
security and investment for the NJ
tional GoveJnment. Postmlaate
. General Meyers views in this in
portant respect will be awaited wit
: interest.-Globe Democrat.