The star and Newark advertiser. [volume] (Newark, N.J.) 1908-1909, 1908-11-30
POSTAL BANKS AND
PARCELS POST TO
GUT BIG DEFICIT
Postmaster General in Annual
Report Advocates InnOva-
tons in Service.
UNCLE SAM NOW LOSING
ABOUT 100000 900 A YEAR
Automobile Collection Tests Sue
cessful@Campaign of Educa-
tion in Schools Recommended.

WASHINGTON, Nov. 30.-The annual
report of Postmaster-Genera Meyer for
the fiscal year ended June 80 last shows
that the year produced the largest
deficit In the history of the depart
mena. The expenditures were S2oS,-
S51, 1856. Is, while the receipts
to S191, ATS, 663.41, showing a deficit OIL
1s.s73.2 22. IA. with an additional loss
from fire, burglary, etc, of $37,056.2o.
The increase in receipts over the pre-
yious year was 81 1893, $751; "a, or APO per
rent. The normal increase in revenue
for several years has been about . per
cent. The report accounts for the fali-
ing off by the financial disturbances of
the wear. and another deficit of over
s$16, 900, 900 is estimated for the present
postal year.
The acknowledgement is again in
sistent on the need of adding a parcels
post and postal savings banks systems
to the service, not only for the con-
v~enience of the public, but for the es-
Establishment of a profitable income.
Suggesting for the purpose of estimate
tndJ IL each TuIdl Cdillct
f1fty-1ve pounds on each trip, the post
master-genera points out, an added In
come of SIS, 000, 900 a veal would result.
He urges hat he be authorized to
establish experimentally a limited local
parcels post, confined entirely to rural
delivery routes in not to exceed four
counties, for packages of fourth-class
matter originating on a rural route or
at its distributing postoffice for deiiv-
cry by rural carriers.
Postal Banks ns Moneymakers.
The postmaster-general bases his
suggestion for the establishment Of pos
tai savings banks largely on the effect
they would have of discouraging the
boarding OF money, n thereby ham
pering circulation. 1t has been esti-
mated, he says, that altogether fully
half q billion dollars not today placed
In any bank. due to want of oppor-
tunity or lack of confidence. might be
brought back into circulation through
the agency of postal savings banks.
Citing the deposit of savings Of 3d.
800, 245, 402 in the New England States,
New York, New Jersey, Pennsylvania,
Maryland, Ohio, Illinois, Iowa n
California. and of only $40, sos, SAB In the
other thirty-two states as evidence, the
postmaster-general argues that postal
banks would hardly enter into serious
competition with established banking
institutions, but woul operate prin-
cipally in a territory not now covered
by private enterprise, as In these
thirty-two States referred to, where In
many localities there are no savings
banks. and in some cases no banks of
any kind. He adds:
"As an evidence of the demand for
postal savings banks we have reports
from postmasters that they have been
compelled to refuse to accept deposits
offered by foreigners for safe-keeping.
and also that our own people have
bought postal none orders during the
last year payable to themselves to the
extent of 49, 04, 447, on which amount
fees Of $3.50 0 were paid.
"a postofice inspector has reported
that one family residing near a small
postoflce in the State of Washington
has $11 900 on deposit in the postal
banks of British Columbia.
Under the bill now before the Senate
with a favorable report from the COM
mittee on postoffices and post roads,
the money would be widely distributed,
MS it would be placed in the national
banks In the districts where the de-
posits were first brought to the post
Offices. The government would not go
into the banking business. The ma
tional banks are to pay 2 per cent.
for the deposits, the government in turn
to pay the depositors 2 per cent, re-
tanning o~ne-fourth of 1 per cent. In
order that the system may be self
sustaining No interest would be paid
by the government on deposits over
$500.
THE deposits would be guaranteed
by the government, as 1t would make
itself responsible by receiving them"
An experimental collection service by
automobiles vas established In Mil
waukee last February. 1t is found that
the same force of collectors can do
twice the amount of work under this
system as when using horse-drawn We
hicles, and that the collection Of mail
is expedited. A temporary contract has
been entered into recently for Wash
ington, D. c., and the experiment will
be tried also In indianapolis, Ind, dur
ing the current year.
The campaign of education in the
schoolhouses in matters pertaining to
the ordinary operation Of the postal
service, so as to emphasize the impor-
lance of careful addressing, the placing
of the name and address, of the sender
on envelopes, etc, is recommended to
be continued. so as to save hundreds of
thousands of letters and packages from
going to the dead letter office, each
49, - H.