Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1908-04-30
CANADA'S POSTAL BANKS
Savings System There Works
Successfully.
Some Interesting Figures ~ POST
mnster-General Meyers Investiga-
tor-At che End of the First
Year the Deposits Amount
ed TO ss5e,s14.28.

The Washington correspondent of the
| Boston Transcript says:
As a part of his campairn for the o.
PUNISHMENT of postal savings depos-
itories Postmaster General Meyer last
October sent Carter Il. Keene. post Office
inspector at Chicago, to Canada to look
into the post office savings bank system
in operation there. Mr.. Keene says he
found the Canadians welded to the sys-
TEN, which h"s been in operation thirty
nine years. Special effort has not been
made to popularze the SYSTEM" says Mr..
Keene, "but 1t has had a substantial and
healthy growth"
Not even notices pointing out its adj
vantages arc posted In the offices. New
business comes largely through the ad-
vertising depositors have given the sys-
tom or from immigrants who have had
! similar facilities elsewhere. At the end
of the first complete year Of the service
2l3 banks we're In operation. having 72io
accounts. representing tS6,Sl426. The
| last report of the postmaster general
| shows 1G4.5i2 savings accounts with n
net credit of st5,736, As 81, an average
OF S276.75 to each depos'tor. Any resi-
dent of Canada, ten years old or over.
may open an account in his own name.
and deposit to his credit not in excess of
5000 In any one year, and $4,000 in all.
a child under ten years may have an ac-
count opened in his name ny n parent or
friend. but Withdrawals cannot be made
until the child attains the age of ten.
Any society. incorporated or unincor-
porated. may avail itse.f of service, sub
ject to the limitations stated. A trust
account may be opened in behalf of an
other person in the JOINT names of that
person and the trustee. The rules con-
template that transact ms shall be with
residents Of Canada. bu, when a dcpositor
goes to another country ne may continue
deposits by direct remittance or through
resident agent. Many Americans liv-
ing near border Offices have accounts in
made to prevent them. An arrangement
the savings banks. No special effort Is
has been made recently with England
for the transfer Of post office savings
banks accounts, so an immigrant from
that country may be credited In Canada
with the amount due him abroad without
mourning the risk and inconvenience Of
handling the money. England has like
arrangement with all her provinces. A
deposit may be made 1t any postal bank
regardless of where the account was
| opened. ms feature Is attractive 10
itinerants.
A depostor may draw all or any part
duo him on application, and repayment
will be made to him # any person desig-
mated by him through any postal bank. X
he be out Of the country, n request for
/! withdrawal to the postmaster general,
accompanied by his pass book. will be
honored. Remittance In such cases are
| 11,- H. 1,t-y nr6n ha
being deducted. W thdrawals must be
given in even dollar, unless 1t Is desired
to close the account. The average life
of an account Is three years. The policy
has been to make the rate OF interest
on deposits the same as that paid by
chartered banks. Prior to October, 1899.
the rate was four per cent. 1t was then
rendered to 10 per cent. and In July,
1897 a further reduction to three per
cent, the present rate, was made. This
is the current rate paid by commercial
banks. Formerly banks under the super
vision Of the Minister OF Finance were
opened in large cities chiefly in the
Eastern prov lnces, for the receipt of de-
posts upon which a fixed rate of interest
was allowed. They are known as Do
minion savings banks and are in charge
of assistant receivers general or agents
who hold office for life. Since post office
savings banks have come in vogue, the
policy has been to merge these banks into
the postal banks when vacancies occur
in the local arrangements. All but twenty
have been thus disposed Of. The last i'm
portant merger was in September. 1906,
when the bank at Fredericton. b.
was taken over with approximately $1,000
GO. New pass books with proper credit
entries were supplied former customers.
Postmasters place savings bank deposits
to the credit of the Minister of Finance
In chartered banks designated by him
as repositories. All postal funds are thus
disposed of. If there be no chartered
bank in the place where the postal bank
is operated the banks report daily to the
department Of finance, through the nc
countant for the post Office department,
the amounts Of funds thus received ac-
companying the reports by drafts for the
amounts.
The matter OF collecting drafts and as
sembling the funds Is entirely with the
department OF finance. All postal funds
whether In trust or revenues, go into one
till In the Offices. and one account In the
banks. The savings. funds form part Of
the public debt and'are available for any
purpose. Inc government is always In
need of funds. the rate of interest paid
is the same as would be required by
private investors, and the money goes In
to the pockets Of Canadians. During the
fiscal year ended June 80. 1906, 81 32S. 205-
rs were distributed or credited on ac-
count of interest. The government re-
ceves no interest from the depository
banks and no charge Is made for trans
acting postal business Of for cashing de-
pos!tors' withdrawal checks In 1906
Parliament passed a law providing that
the minister of finance shall hold. for the
purpose OF securing repayment of de-
posts made In post-office savings banks,
an amount In gold. or In gold and Canad-
ian securities. guaranteed by the govern
ment Of the United Kingdom. equal to not
less than 10 per cent. OF the total amount
Of such deposits. This Is the first pro-
lection given postal-bank depostors In
addition to the pledge OF the Canadian
government. Except In some cases Of
on-account!ng offices. postmasters fur
nish no bonds for the faithful discharge
OF their duties, as is done under our sys-
tenn but the government insures them
instead Withholding annually from their
compensation twenty-five cents on each
500 Of the required insurance. No special
insurance to cover savings-bank funds
Is required. Postmasters In the four
largest cities are insured for 5000 each.
The minimum insurance for an account
Ing postmaster in $500. This system has