The Idaho Springs siftings-news., 1908-03-21

cent. per annum on the excess.
-Italy-The interest paid has aver
aged under 3 per cent No interest Is
paid on any sum in excess of 2,0u0 lire,
and the rate is determined each year
by the minister OF finance.
"Canada-The rate OF interest is
per cent. per annunl-
''Japau-Since the postal savings
bank system was established in 1873,
the lowest rate of interest paid was 81
per cent per annum. and the highest
rate - per cent per annum. The pres
ent rate is 5o4 per cent. per anuum.
The average amount Of deposits al
lowed to each depositor is 1000 yen,
about Sass.
The rate of interest which the de-
partment has recommended. > per cent.
per annun, is evidence that il is not
the inteltion to 60 into the banking
business Cr TO compete with existing
savings Institutions which pay, in
great many instances, 4 per cent. per
annum. On the contrary, IL Is pro
posed to .e-deposit the money which is
brought . the postOtiices N national
banks in the locality where il is first
received, thus making 1t Immediately
available for the financial aud business
transactions of the community 10
which it properly belongs.
The character OF the immigration
to this country is undergoing rapid
and significant change. This is sub
ject for serious consideration, and one
which has important bearing on the
matter under discussion.
The expense to the government in
connection with the operation of postal
savings banks would not be great. In
MI StEE hava hpPn
received and returned to depositors in
the last thirty-nine years. and where
at present about $50 100000 are on de-
post, the total expense to the central
establishment at Toronto is given as
100000 annually. Outside of that city
the work incident TO the system is in
cluded in the duties of regular postal
employees. In the United States the
work could be performed in money or
der Offices by the clerks handling such
orders, and it is not believed that ad-
ditional employees would be needed in
any of the Offices.
The system proposed contemplates
the daily reporting deposits to the post
master general who would acknowl-
edge receipt directly 10 the patrons.
The maximum amount which would be
received from any individual is placed
at $500. Postal savings deposits would
not be liable to demand, seizure, or de-
tention under legal processes against
the depostor
''As the Postoffice Department (gov-
ernment is preferred creditor II
would not demand collateral from the
banks in the way of bonds There
would be the safeguard of the comp
troller of the currency reporting regu-
l., 1, Nf = b, hat
are used as repositories. and the
double liability of the stockholders of
the national banks would be an addi-
tional assurance of the security of the
deposits.
The claim is made that instead of
injuring present financial institutions
it would be great benefit and would
strengthen their position. Any deposi-
tor who at present has dealings with
a savings bank, and is getting per
cent interest, would not take his de-
post away and thereby reduce his in
come one half to place it in the post
office. The individual who opens an
account with a national or state bank
or trust company has the advantage
of a check book, enabling him to pay
his bills in a convenient manner and
to have his paper and that of his Gus
toners or clients discounted. None OF
these advantages accrues to a deposi-
tor in the postal savings bank. Again,
when the depositors had accumulated
money to the amount of 5000 or $500
they would in all probably withdraw
it and place it in a savings bank where
they could obtain much larger re-
turns. Furthermore. in times of nerv-
Gus fright, such a have existed in
the past it would be benefit to
banking institutions tshould the depos-
tors place it with the postal savings
bank instead of Withdrawing it for the
purpose of putting it into hiding), as
il would be deposited Immediately with
he local national bank, thus strength
ening that institution and the COM
munity with new money.
individuals frequently call at post
Offices and ask to have their money
taken care of by the postmasters. II
in such cases money orders are not
purchased the money usually goes into
hiding, losing its usefulness to the
community.
Believe me, faithfully yours,
&c. l.. MEYER"