The Ordway new era., 1908-03-27
deposits up to 1000 franca and . per

deposits up to 1000 francs and per
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 1000 lire.
by the minister of finance.
"Canada-The rate of interest Is 3
per cent. per annum.
"Japan-Since the postal savings
bank system was established in 1875,
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 5.04 per cent. per annum.
The average amount OF deposits al
lowed to each depositor is 1000 yen.
about $49S.
THE rate OF interest which the de.
partment has recommended, 2 per cent.
per annum, is evidence that 1t is not
the intention to 60 into the banking
business Cr to compete with existing
savings institutions which pay, in q
great many instances, per cent. per
annum. On the contrary. 1t is pro-
posed to re-deposit the money which Is
brought % the postofIices in national
banks in the locality where it is first
received. thus making it Immediately
aNdlIaDle lOI tue uildHtIuI anu Duoiutso
transactions of the community TO
which 1t properly belongs.
THE character of the immigration
to this country is undergoing u rapid
and significant change. This is a 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
Canada, where siG5 100000 have been
received and returned to depositors in
the last thirty-nine years, and where
at present about $50, 600. 900 are on de-
posit. the total expense to the central
establishment at Toronto is given as
$1,000 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 1t is not believed that ad-
di,ional 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 TO 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-
tcntion under legal processes against
the depoSitor.
las the Postofiice Department (gov-
ernment Is a preferred creditor 1t
would not demand collateral from the
banks in the way OF bonds. There
would be the safeguard OF the comp
irollcr OF the currency reporting regu-
larly on the standing OF the banks that
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 n great benefit and would
strengthen their position. Any deposit
tor who at present has dealings with
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 national or state bank
or trust company has the advantage
of check book. enabling him TO pay
his bills in n convenient manner and
to have his paper and that Of his Gus
toners or clients discounted. None of
these advantages accrues to deposit
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
1t and place it in n 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 (should the depos-
itors place IT with the postal savings
bank instead of Withdrawing it for the
purpose of putting 1t into hiding), as
1t would be deposited Immediately with
the local national bank. thus strength
eninS 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"
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