, 1908-09-26
SAVINGS IN
P0ST0FF|CE
BENEFITS AND SAFEGUARDS IN
sYTEM OF POSTAL saw
lNas REPOSITORIES.
Postmaster General Meyer In Letter
10 Senator Carter Of Montana Dis.
cusses Features Of the Plan Not
Heretofore Generally Known by
the People Of the Country.

The rate of interest which the de.
partment has recommended, 9 per cent
per annum, is evidence that 1t Is not
the intention to go into the banking
business or to compete with existing
savings institutions, which pay, in a
great many instances, 4 per cent per
annum. On the contrary, II is propos.
ed to redeposit the money which is
brought to the post-ofices in national
banks in the locality where it is first
received, thus making it Immediately
available for the financial and bust
ness transactions OF the community to
which 1t properly belongs.
There are three Urinary results
which should be attained by the es-
tablishment of postal savings banks:
% The forming of habits of economy
and thrift by the great mass of the
people. (2) The providing of a place
entirely above suspicion for the deposit
of funds. (S) The bringing into cir
culation of vast sums of money now
hOaiutu mere VI fotuI OuL VI lut COuu-
try by foreigners.
While there are many communities
in the eastern states fortunately situat-
ed as to banking facilities, statistics
indicate that of the SO $500, 900, 900 de-
posted in savings institutions through
out the United States the combined
holdings of 35 states are but s per cen
of the total. There are, therefore,
greae numbers of our people who are
practically without banking facilities.
Indeed, 1t is found that In the south
the average distance 'rom the post
office to the nearest savings bank is
33 miles; in the states west Of the
Rockies 1t Is 55 miles.
Savings Of Foreign Born Population.
There can be no question as to the
a~dvisability Of encouraging the foreign.
ers within our borders to make such
disposition Ct their savings that some
benefit will accrue &c tie CO mn VI lite 5
In which iley arc employed. Nest CT
these people come from countries in
which postal savings banks have long
been established, and they have little
confidence in any depository for saw
ings which is not absolutely vouched
for by the government. In the fiscal
year ended June 80, 1907, money or
ders amounting to $74,0S0,711.06 left
this county, in the calendar year 1907,
1914, 1872, 1864, to replenish foreign cof-
fers; and in addition many millions
were undoubtedly sent through the
agency of banks and express com
panies.
The character of the immigration tC
this country in undergoing a rapid and
significant change. This is a subject
for serious consideration, and one
which has al important bearing upon
the matter under discussion d.
The expense Of the government in
connection with the operation Of pos
tai savings banks would not be great.
In Canada, where $465, 00O,000 have
been received and returned to deposit
tors in the last thirty-nine years, and
where at present $50, 900, 900 are on
deposit, the total expense to the cen
raj establishment at Toronto is given
as 100000 annually. Outside of that
city the work incident of the system is
included in the duties of regular EN-
ployes. In the United States the work
could be performed in money-order of
fees by the clerks handling such
orders. and it is not believed that ad-
ditional employees would be needed.
The sytem proposed contemplates
the daily reporting Of deposits to the
postmaster-general who would ac-
knowledge receipt directly to the pat
rons. The maximum amount which
would be received from any individual
is paced at $500. Postal savings de-
posts would not be liable to demand,
seizure, or detention under legal pro-
cesses against the depositor.
Deposits Absolutely Safe.
As the p~ostofice department (gov-
ernment) is a preferred creditor, it
would not demand collateral from the
banks in the way of bonds. Their
would be the safeguard of the comptrol-
Ter of the currency reporting regularly
on the standing of the banks that are
used as repositories, and the double
liabi' ity of the stockholders of the ma
tional banks would be al additional
assurance of the security of the depos-
it's.
The claim is made that instead OF
injuring present financial institutions
it would be a great benefit and would
strengthen their position. Any de-
positor who at present has dealings
with a savings bank and is getting 4
per cent interest would no take his
deposit away and thereby reduce his