Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1908-09-25
BENEFITS AND SAFEGUARDS ON
THE PROPOSED SYTENI OF
DEPOSITORIES.

;pIouSul " LIZ poSIOulCSS liz hllO III
tional banks in the locality where
it is first received, thus making it
Immediately available for the finan-
cial and business transactions of the
community to which it properly be-
longs. ,4a& y + ,s -,
There are three, primary results
which should be attained by the
establishment of postal savings
banks:hl 1) The forming of habits
Of economy and thrift by the great
mass of people. ~ The providing
of place entirely above suspicion
for the deposits of funds. 81 The
bringing. into circulation of vast
sums Of money now boarded here or
sent out of the country by foreign
ers. @S, ~&er#s 7.EE-E
While there are many communities
in the eastern states fortunately
situated as to banking facilities, sta
tistics indicate that of the $780,
100000 deposited in savings institu-
lions throughout the United States,
the combined holdings of 35 states
are but per cent Of the total. There
are, therefore, great numbers of curl
people who are practically without
banking facilities. Indeed, it is found
that, in the south the average dis
lance from the postoffice to the
nearest savings bank is 33 miles; in
the states west of the Rockies it is
81 miles. y
Savings of Foreign Born Population
There can be no question as to
the advisability of encouraging the
foreigners within our borders to
make such disposition of their saw
ings that some benefit will accrue
to the communities in which they
are employed. Most of these people
come from countries in which postal
! savings banks have long been estab-
lished, and they have little conf
dence in any depository for savings
which is not absolutely vouched for
by the government. In the fiscal
year ended June 30, 1907, money or
ders amounting to- $4,000, I'll .O6i
left this country, in the calendar.
year 1907, $94, s92, 1864, to replen--
ish foreign Golfers; and in addition
sent through the agency of banks,
and express companies III
The character of the immigration
4 ~. ~ Z e N 'tr.
to this country IS undergoing a rap
| ID change. THIS is subject FOR SER
ious consideration, and one which
has an important bearing upon the
matter under discussion
The expense to the government in
connection with the operation Of pos
tai savings banks would not be great.
In Canada, where s465, 100000 have
been received and returned to de-
positors in the last 80 years, and
where at present $5O,OOo,000 are on
deposit, the total expense Of the cen
4 trail establishment at Toronto is CIV
4 en- at $50, GOO annually. Outside of
4 that city the work incident to the
4 system is included in the duties Of
4 regular employees. In the United
States the work could be, performed
in money-order Offices by the clerks
! handling such orders, and it is not
1 believed that additional employees
would be needed.
The system proposed contemplates
/ the daily reporting of deposits to the
i postmaster4general, who would ac-
n knowledge receipt directly to pat
rons. The maximum amount would
be received from any individual is
placed at $500. Postal savings de-
posts would not be liable to demand,
seizure, or detention under legal
Il processes against the depositor.
Deposits Absolutely Safe. 0
AS the postoffice department (gov-
ernment) is q preferred creditor, it
would not demand collateral from
the banks lin the way. Of bonds.
There would be the safe guard, of
the comptroller of the currency re-
porting regularly on the standing of
the banks ahat are used as deposit
tories, and the double liability of the
L stockholders of the national banks
would be an additional assurance Of
the security of the deposits.
The claim is made that instead of
injuring present financial institute
tions it would be great benefit and
would strengthen their position. Any
depositor who at present has deal
ings with a savings bank and is get
ting 4 per cent Interest would not
take his deposits away and thereby
reduce his income one-half to place
It In the postofice. The individual
who opens an account with a nation
al or state bank or trust company
has the advantage Of a check book,
enabling him to pay his bills In a