The state herald., 1908-03-27

deposits up to 2,00O francs and per
cent. per annum on the excess.
"Italy-The interest paid has aver.
aged under per cent. No interest is
paid on any sum in excess of 1000 lire,
and the rate Is determined each year
by the minister of finance.
"Canada-The rate of interest is 3
per cent. per annum.
"Japan-Since the postal savings
bank system was established in 1875,
the lowest rate of interest paid was 81
per cent per annum, and the highest
rate 7.2 per cent per annum. The pres
ent rate Is 504 per cent. per annum.
The average amount of deposits al
lowed to each depositor is 1000 yen,
about $49S.
"The rate of interest which the de.
partment has recommended, per cent.
per annun, is evidence that 1t is not
the intention to go into the banking
business OF to compete with existing
savings institutions which pay, in a
great many instances, per cent. per
annum. On the contrary. 1t is pro
posed to re.deposit the money which is
brought 10 the postofces in national
banks in the locality where 1t is first
received, thus making 1t Immediately
available for the financial and business
transactions of the community to
which 1t properly belongs.
THE character of the immigration
to this country is undergoing a rapid
and significant change. This is a sub
iect for serious consideration, and one
which has important bearing on the
matter under discussion.
TO, h.. N.nF,t In
connection with the operation of postal
savings banks would not be great. In
Canada, where $lG5,000 600 have been
received and returned TO depositors In
the last thirty-nine years. and where
at present about 50,0O0,000 are on de-
posit, the total expense to the central
establishment at Toronto is given as
| 5000 annually. outside of that city
the work incident TO the system Is in
cluded in the duties of regular postal
employees. In the United States the
work could be performed in money or
der offices by the clerks handling such
orders, and II is not believed that ad-
ditional employees would be needed in
any OF the offices.
THE system proposed contemplates
| the daily reporting deposits to the post
master general, who would acknowl'
edge receipt directly 10 the patrons.
The maximum amount which would be
received from any individual is placed
at $500. Postal savings deposits would
not be liable to demand, seizure, or de-
tention under legal processes against
the depositor,
''As the Postofllce Department tgoy'
ernmenD is a preferred creditor II
would not demand collateral from the
banks in the way OF bonds There
would be the safeguard Of the comp
Itroller of the currency reporting regu'
larly on the standing Of the banks that
are used as repositories. and the
double liability Of the stockholders OF
the national banks would be an add
tional assurance OF the security OF the
deposits.
THE claim is made that instead OF
injuTing present financial Institutions
II would be a great benefit and would
strengthen their position. Any deposi
tor who at present has dealings with
savings bank, and is getting 4 pei
cent interest. would not take his do
posit away and thereby reduce his In
come one half TO place I, In the post
bllffs lN' NHb ~
account with a national or state banl
or trust company has the advantage
Of check book, enabling him TO pay
his bills in n convenient manner and
to have his paper and that OF his Gus
toners or clients discounted. None oi
these advantages nccruos 10 a dcposi
tor In the postal savings bank Again
when the depoBltnrs had accumulated
money to the amount Of 5000 or $500
they would in all probably withdraw
Il and place II In savings bank where
they could obtain much larger re
turns. Furthermore In times Of nery
Gus fright. such have existed in
the past II would be a benefit "a
banking institutions tshould the depoB
itors place II with the postal savings
bank Instead of Withdrawing Il for the
purpose Of putting II into hiding), af
II would be deposited Immediately with
the local national bank, thus strength
ening that institution and the com
munity with new money.
individuals frequently call at post
Offices and ask to havo their money
taken care Of by the poatmasters. II
In such cases money orders are not
purchased the money usually goes into
hiding. losing It's usefulness to thu
community
Believe me. faithfully yours,
20. l. MEYER"