Rocky Ford enterprise., 1908-03-27

uCpOolto up " sbooO iIauCp anu pot
cent. per annum on the excess.
"Italy-The Interest paid has aver.
agod under 8 per cent. No interest is
paid on any sum In excess of 1000 lire.
and tho rate IL determined each year
by the minister OF finance.
"Canada-The rate OF interest 10 :
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 Ia 5.04 per cent. per annum.
Tho average amount OF deposits al
lowed to each depositor Is 1000 yen.
about $49s.
"The rate Of interest which the do.
partment hns recommended. 2 per cent.
per annuni. is evidence that 1t IL not
the intention to go into tho banking
business Or to compete with existing
savings Institutions which pay. In q
great many instances. 4 per cent. per
annum. On the contrary. 1t Ii pro-
posed to re.depOsit the money which IL
brought 10 tho postofiices In national
banks In the locality where 1t is nrst
received. thus making It Immediately
available for the financial and business
which 1t properly belongs.
THE character OF tho immigration
to this country Is undergoing rapid
and significant change. This is a sub
ject for serious consideration. and one
which has important bearing on the
matter under discussion.
"The expense to the government In
connection with the operation OF postal
savings banks would not be great. In
Canada. where $iC5. 100000 have beon
received and returned TO depositors In
the last thirty.ninc years. and where
at present about $50. 100000 are on dc.
posit. the total expense to tho central
establishment At Toronto is given rs
100000 annually. Outside Of that city
the work incident to the system is In
ciudcd In the duties of regular postal
employees. In the United States tho
work could be performed In money or
der ofiiccs by the clerks handling such
orders. and Il Is not believed that nd.
ditionai employees would be needed In
any Of the of'iccs.
The system proposed contcmplatcs
the daily reporting deposits TO the post
master general, who would acilnowl.
edge receipt directly to the patrons.
The maximum amount which would DO
at $500. Postal savings deposits would
not be liable to demand. seizure. or de.
i.E,Ion under legal processes against
tho deposition.
''As tho Pos,ofiicc Department tsov.
crnmcnD In n preferred creditor Il
would no, demand collateral from tho
banks In the way OF bonds. There
wonid be tho safeguard Of tho comp.
iroiicr Of the currency rcporiin. rc.u.
larry on the standing OF tho banks thns
sr. used ~ repositories. and tho
double liability Of the stockholders OF
the national banks would be an addi.
iionai assurance Of the security OF tho
deposits.
''The claim II made that instead Of
inJutinE present financial Institutions
II would be a great b~ncnt and would
strengthen their position. Any dcposi.
tor Who at present has dealings with
n savings bank. and Ia getting 4 per
cent interest. would not take his do.
posi-, away and ther~by reduce his In.
come on~haf 10 place II In the post.
once. The Individual who opens an
acconh, with a national or state bank
or trust company has the advantage
Of a check hook. enabling him To pay
his bills In n convenient manner and
to have his paper and that of hin Gus
toners or clients discounted. None OF
these advantages arcrucs To dcposi.
tor In tn. postal savings bank. Again.
when tho drpoHi,ofa had accumulated
money to the amount Of $500 or $500
they would In all probably withdraw
II and place II In a savings bank whcro
they could obtain much larger rc.
turns. Furthermore. In timcs of ncrr.
Gus fright. such have existed In
the past II would bo a benefit TO
banking institutions tshouid the dcpos.
iIoEs place II with the postal savings
hank instead Of Withdrawing II FOR tho
purpose of putting II Into hidius). a.
u would be deposited Immediately with
ii. local national bank. thus strength
-ninE that institution and the com.
mnni'y with new money.
''indisidnais frequently call at post.
Offices and ask TO have their money
taken care Of by the pos'masters. II
In such eases money orders are not
purchased the money usually goes Into
hiding. losing its usefulness to tho
community.
believe me. faithfully yours.
Nttsvtsn