Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1908-01-23
IContinued from FIRST page

not be great. The deposits could be
easily handled by the postmasters in
the small offices and by the money
order clerks in the cities. If a deposit
tor takes SIS to a post Office credit
would be entered in his book, and
within a reasonable time, from "a to
4 48 hours, or whatever time would be
required for the transit from Wash
ington, he would receive a slip notify
ing him that such a credit mad been
entered by the post Office department
He would be doubly protected as to
credit entries, and the Washington
credit would also be a check upon the
| postmasters.
LIMIT. DEPOSITS.
"The limit of deposits will be $500
for each person, and as the rate OF
interest is 2 per cent. it can be seen
that the government has no intention
| of coming into competition with ma
tional banks. The question will be
asked how trust companies and state
banks will be benefited. I can illus
trate this by pointing to a recent run
on Providence banks. Suppose that
the Withdrawals had been deposited In
the postal savings system. The mon.
ey would almost Immediately be re-
turned to that city through the ma
tional banks. They would aid the
trust and other banks, the money
! would find its way back into its own
trade channels, and the run would be
stopped. 1t would be like pumping
out water and having it return to the
same well.
There are three billions and a half
out in currency in this country. OF
! this sum two billions and half is ac-
] counted for in the channels of trade,
in banks or in the treasury The re-
naming billion is the hidden portion,
and it will be the part of the postals
savings system to bring it out Nine
ty-two per cent. of the savings bank
deposits are in II states. New Jersey
has a good record for its size The
remaining 8 per cent. is in the states
where banks are not so plentiful, and
it is to reach these sections that the
postal savings system is intended. 1t
is not for any particular state but for
the localities where the rural carrier
goes or where there is a post Office
which can also be made bank of de-
post.
"a careful estimate fixes the
amount that the postal savings would
bring into the channels of trade at sew
eral hundred millions of dollars. The
cost of such a system would be small.
About the only addition needed would
be division of savings at Washing
ton. For this | have asked for an an
nual appropriation of $100000 Cana
da has had a postal savings system
for 40 years and it costs 100000 per
year to handle $50,000,000. 1t can be
safely said that in this country the
deposits should be four to five times
this amount. In the 40 years that the
Canadian system has been in exis-
tence there has been but a loss of $25,-
000 The deposits there are paid into
the treasury, but as l have shown the
plan in this country would be that of
returning to the counties the money
deposited from them through the ma
tional banks
SS0,000,000 TO EUROPE.
Last year $4,000, 900 was sent from
this country to Europe by postal mon
ey orders, an average of $40 per or
der OF this amount $19,000,000 went
to Italy, $16,000,000 to Austria Hun
gary, 81 100000 to Great Britain and
100000 to Russia. This does not
include amounts sent through private
bankers or by the express companies.
A considerable portion of these sums
was deposited to the credit of the
senders in the postal savings banks
Of fhnir TaofiOn mi
informed that the foreigners who re-
Gently departed for their homes in
large numbers deposited with the
pursers of the boats an average of
500 in gold. The foreigners know
that their own postal banks are sound.
They would know the same of postal
system backed by the government
here. as they would be assured that
the government would always be able
to pay their deposits. Thus a portion
of the money now sent abroad would
find its way into postal savings sys-
tenn in this country.
when a depositor had several hun
dred dollars to his credit he will in all
probability place it in a local institu-
ton where the rate interest is higher.
The principal point is that of starting
the habit of saving. France to-day
owes much of its financial standing to
the thrift Of it's people, and its large
gold reserve is the result of saving by
the great mass of its population.
These are the propositions for the
extension and advancement of the
postal service to make it of. greater
benefit. If the people of New Jersey
are interested they should bring to
the consideration of their representa-
tives in Congress their views upon
these questions after giving them
careful consideration
ROOSEVELT APPROVES.
William Diecks of Essex county
asked if President Roosevelt had ap-
proved of the recommendations of the
postmaster-general TO this Mr.. Mey-
er replied that the President had Civ
en- his most hearty support and had