The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-10-18
POSTAL SAVINGS
BANKS PROFITABLE
So Says Postmaster General
Meyer in Answer to
Critics.
FOREIGN SYSTEM SUCCESS.
DEPOSITS ARE NoRMoUS-FALL-
ING OFF IN PROFITS IN ENG
LAND is DIRECTLY DUE TO
OUTSIDE INFLUENCES.

Washington, Oct. 17.-Postmaster
General Meyer has expressed himself
with vigor concerning recent criticism
of the postal savings bank plank in
the republican platform. Some of the
criticisms have appeared in newspa-
pers ordinarily friendly to the admin
istration or at least supporting the re-
publican national ticket in the cam
paign.
that postal savings banks have been
failure in European countries Mr..
Meyer said today:
ITO assert that the system of postal
savings banks has seen an utter fall
ure abroad and therefore ought not
to be tried in this country, displays
surprising ignorance concerning the
whole subject. In England where post
al savings banks have existed for for
ty-five years, the system has grown so
substantially that according to the last
annual report there were 1890, 204 de-
posits. The annual amount deposited
has grown to be upward of $215,OO0.
From 1905 the interest accredited to
depostors aggregated SIT, 10000. An
addition of nearly S2O,0OO,0OO was
made in 1905 to the amount standing
to the credit of depositors, which at
the beginning of the present calendar
year, had reached the immense total
Of $3.50, 555, 100 an average of some
thing over $40 to each depositor.
Explains Loss of Prifits.
at is true" continued the postmas-
ter general, that the profits of the
postal savings bank system in Eng
land during the last few years have not
been so great as in the years preceding
and there is even loss in its manage.
ment at the present time, but this is
mainly due to the decreased interest
on consols, in which the funds are
largely invested.
Had the British government deem
ed it advisable the rate of interest
paid to the depositors could have been
decreased, but owing to the large vol
ume of profits received by the govern
ment previously it was deemed unfair
to the depositors to make this reduc-
ton. The postal savings bank system
in Great Britain and other European
countries has been a decided success,
and statements to the contrary from
persons who are interested in having
the growing sentiment In their favor
squelched in this country must be
branded as undeniably false"
Paying his respects to the resolu-
lions against the establishment of pos
tai savings banks which were adopted
by the bankers in their recent conven-
ton at Denver, Mr.. Meyer said that
these sentiments were no. of the rabid
sort which some of the newspapers de-
noted them to be, but were only rep
resentative of the protest which might
be expected from the bankers who saw
| in the establishment Of the govern
ment saving scheme the disappearance
of share of their own business.
Bank Guarantee Is Tricky.
The postal savings bank system can
| by no means be likened to the prop
osition advanced by the democrats for
the government guaranty of bank de-
posits,' said Mr.. Meyer Il consider
| the last scheme an insidious attempt
| to fool the voters of the country into
would eventually bring to the country
more disaster than the formerly pro-
posed free coinage of silver"
Postmaster General Meyer is prepar-
ing himself with information concern
ing the postal savings bank system,
which he may use in a series of cam
paign speeches if it appears that the
government guarantee of deposits fea-
ture is making dangerous Roadway.