The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1908-01-23

I
TEN is not yet with us. T. Is the conviction
Of those who give the subject more than
passing thought, that II Is bound 10 come
at no distant day The average Congress
man does not seem eager 10 understand
/ how the system is operated in other
countries He fancies il is some sort OF
/ foreign institution associated with mon
archy lie supposes that 10 establish
/ IL here would be TO encourage centrdli-
cation and swell the ofice-holdng class
But il is q fact that the postal savings
! banks. as in the case Of other popular
/ institutions in foreign countries, have
come into being after panic5 and hnan-
| cisI distress in which the masses OF
/ the poor people were trying TO do some
thing 10 help themselves.
The Fifty-ninth Congress adopted
resolution asking for information on the
operation OF postal savings institutions
/ IN foreign countries This was obtained
! through the diplomatic and consular ser
! vice Of the United States. The inquiry
! Of Congress covered a period from 1896 to
/ 1896 inclusive. Reports were obtained
1 from Great Britain, France, Belgium,
Italy. The Netherlands, Austria-Hungary,
Sweden, Russia. Egypt, Bulgaria, and
Japan. Without exception all have made
tremendous progress in the number Of
depOsitors and in amounts Of deposits.
In Europe the system was most pOpu-
lar in France and Italy. France in the
ten years added l.710.000 depOsitors and
increased deposits s7SG00,C00. Italy's in
crease in depositors was 100000, and tn
deposits Sl25.000000. Depositors were paid
in Great Britain II per cent in France
3 per cent, and in Italy a little less than
3 per cent
in 1895 the number Of depOsit0rs in the
postal banks Of the United Kingdom was
9573.7l7 and the amount of deposits,
f721. Sl9. 296. Our nearest postal banking
lneighbor. Canada, on November 90 1906.
had 1881 depositors and deposits
amounting 70 1902. 5l4 The number OF
post-offices in that country having postal
/ savings banks was l01l. The same pro
portion Of deposits, suppOsing We had
postal savings hanks in operation Al
our 1900 money-order offices. would give
an aggregate Of S2,22I, 0s5, 500 deposits.
/ Postmaster General Meyer, in recon-
Intending a postal savings bank system
for the United States, insists primarily
that IL is to encourage thrift and econ
omy. and 10 afford a place Of deposit. free
from doubt and suspicion. for vast sums
Of money which might otherwise be
/ boarded and, through ignorance and lack
Of confidence. be kept out OF circulation.
/ Foreigners recently immigrated here. are
Extremely shy Of placing money m any
bank. The Postmaster General called at
/ tenti0n % the fact that the Post-office
Department. during the fiscal year ended
June 3d. 1901 sent to European countries
in the form OF money orders alone W.
Iu074s94. the bulk OF il going 10 Italy
Austria-Hungary, Great Britain. and
Russia.
In consequence Of the October panic Of
1877. the post-oflce money-order business
Increased enormously. as inquiry at any
mouey-order Office Will show. The pur-
chaser OF each order has in q way placed
his money on deposit with the govern
Iment Of the United States. and, in lieu
Of something better. he is satisfied with
the governments promise 10 give il back
10 him whenever he wants u. On all
teeing of depositors against loss-in ma
tional banks. in State banks, and other
savings institutions The postal savings
system is a government guarantee 10 de-
positors. II has been urged that by limit
ing to something like ~ per cent, the
rate Of interest that national banks snail
nav on deposits. II would still leave a
large field for savings and trust compa-
MES and State banks TO paw any rate OF
interest they pleased, bound only by the
statutes OF the States.
Postmaster General Meyer directs at
tention to the fact that in Canada in
thirty-niue years $465, 600 90 have been re-
celved and disbursed by postal savings
banks with a loss 81 only about 5000
20 the government. National banks, &C
cording 10 Mr. Meyer. will allow 2lz per
cent on deposits from postal banks, With
the government guaranteeing national
banks with a doubled liability Of national
bank stockholders. the entire object Of
postal savings banks would be perfectly
conserved. Mr.. Meyer suggests a > per
cent rate Of interest, and that deposits.
BY any one person. be limited 10 800.
ANY individual ten years old or more
would be permitted to open an account
lin his own name Any honest objection
10 a postal savings bank or 10 its tend
ency 10 Capitalization may be dissipated
by the simplest investigation. But little
more work, and but little more clerical
help would be required under the bank
system than under the m0uey-ordeT sys-
ten.
Two months after the panic Of 1873
Postmaster General J. A J. Cresswell.
urging the establishment Of postal saw
ings bank. remarked on the continued
financial difficulties Of the country and
the great necessity for gathering and
employing the immense wealth scatter
ed among the people" 10 prevent panic
and escape the ruin that inevitably fol-
: lows. In 1913 there were in the United
States but fourteen cities with a popula-
ton of over 10000, and but 3,0lS money
order post-offices. Now there are over
fifty cities with a population Of over
100000 each, and 1910 money-ordeT post
Offices.
Thoughtful men Of both the, great poll
teal parties seem to be agreed that the
United States as q nation is singularly
impOtent in the presence Of money strin-
genCy II has had its severe paniCs.
scattering ruin and distress on all sides.
and vet the country has gone on and on
Increasing its wealth and growing
stronger after every disaster, until one
is reminded of the old savage tradition
that the warrior who slew an enemy In
strife was Immediately endowed with
the strength of his victim. So the Unit
ed States may be said to have some curl
GUS paTadOxical incidents in its finan-
cial history.
The worst panics we suffered in the last
half century did not in any decade in
terrupt our national progress. Within
the ten years between 1860 and 1870, and
covering the far-reaching panic of 1873,