The Washington herald., 1909-02-13


Another and a very troublesome feature
Of the existing systems which have fol-
lowed the British plan OF having pass
books issued from pOst-ofiices and bear
/ Ing series OF Identifying numbers ap-
plicable only to such Offices Is the cross
I deposits" which arise and require spe-
/ ciai adjustment before they reach the
/ ledgers- Gross deposits are deposits
entered IN psss-books which have been
issued by some other post-office than the
one reporting the Deposit depOsitor can
only have one book. or one account. but
that same book must be the one used for
/ all subsequent transactions no matter
where the depositor may happen to be
Another outcome OF the pass-book
/ idea.
Besides what I have stated. there Is
another and very expensive but neces-
/ sary feature of the pssS-bOoh way OF
dealing with deposits. It IS an obllgation
on the part Of the department central
ordce) TO confirm direct TO the depositor
/ himself by means Of q special receipt
/ technically called an Acknowledgement
each deposit as It Is made and within A
/ liked period (in Canada FOR the nearer
residences ten days. anu the more re-
mote eighteen days. and Il Is the de-
positor's duty 10 see that he gets his con-
/ hrmatory receipt within that period
I otherwise he exposes himself 20 possible
loss should the receivine. postmaster not
/ have reported his deposit. bur annro-
( priated the money to his own 1rye OF
course. under the certificate system con
I fTmatOry receipts are not necessary. the
4 certificate Is itself proof % the deposit0r
that his money IS safely in the hands Of
! the government and precisely in the
same way as any other government bond
would BE-
I notice that in the biz CVo. s.sn NOW
under consideration in your Senate i fs
! proposed 10 accept for deposit fractional
I portions Of dollar That would b. =
I very expensive thing 10 do from a book
I keeping point Of view-an unvvarrsnfaf,le
] expense. IN fact; and. besides. il conceals
a dangerous temptation 10 the theft O.
small coin on the part Of children
thing 10 be guarded against That bin
also proposes that deposits in stamps be
accepted. Besides being a great tempts-
ton 70 forgery. and apart from the Erea;
cost Of preparing. issuing. and keeping
distinct record OF special stamps. there Is
the labor ana cost involved in the mail
registration Of the packages containing
these vouchers The cards upon which
the deposit stamps have 20 be placed be
come equivalent 10 cash remittances .by
the postmaster, and. therefore. require
4 greater protection-such protection as
Iregistration only can give-than ordinary
letters This would throw a tremendous
additional burden on the existing mail
service.
IL may seem unnecessary. but 7 would
ike 10 say word or two respecting The
limiting OF deposits. There seems 10 be
an impression that as these deposits are
mad exempt from seizure, they should
be confined 20 maximum ot only = few
hundred dclars. This SCENE % me 2
very needless provision. f0r II a mar
wishes to conceal from ais creditors Tho
knowledge Of what money he possesses
he can resort 10 a hundred ether ways
than through a savings bank account q
do il. II other banks afI q be affected By
his using the post-Office. they have theii
remedy in their rate Of interest How fal
does attachment reach ordinary savings
bank deposits ROW.
As your banking system has a struc-
itural difference from the Canadian. I may
ibe hardened Tor aHuding 10 the TO-
icalitv claim" which Is so frequently made
for the National and State banks To
lme this claim has always appeared some
what imaginary. Does all the money de
POSTED in any one locality permanently
remain in that locality, and applied eN-
ciusiveiy 20 the development Of The
business OF that lccaity2 ] think not
Whatever surplus there may be sOor
finds its way 10 other points. New York
and Chicago. for example, are great com
petitors for such money. and get II. too
lCash. Ike any other commodity. follows
IL - -
fear that government savings banks vii
lseriousIy interfere. or interfere AZ al
with the business OF ordinary banks, IS
in m, opinion. groundless. The clas!
Of people who would transact business al
la post-ofIice are not. as rule. the same
IcIass who would so to commercial hank:
with their money. The laboTing man and
the domestic maid-serv9nt willingly e
10 q post-office but have almost an aver
sion 20 being seen in the elaborate sur
lroundinss Of a commecial bank: their
modest transactions are for the post
iofice. not for large business concerns. and
this suggests 10 ne 10 draw attention
Ito the great saving Of time to the work
ing reople. and its adaptahility 70 their
ro-lrs of labor which the certificate plar
has over any other A brief moment sCf
fees for ali purposes. and the place o
idsposit Is at the depoSitOr's door.
Much more might be said in behalf Of
the superiority Of the postal savings GER
/ tificate. and its simple but ingenious ad-
Unstable coupon device for calculating
and paying the sccruing interest, but
I hope / have said enough. and have said
nothing but what my experience has war.
ranted me in saying
7 am fully convinced that this certih-
cate plan Of dealing With deposits. and
the payment OF interest viii play a very
important and benedcieTt uart in she 11
ture financial history Of this country. and
IN other. countries as well when they be
come acquainted with Il. I wish yoJ
every success in your effort to secure Z
postal savings system for the UorkiHs
classes. and I hope the plan which yol
have submitted viii Re the one adopted
10 carry that out.
1 am sure that In view Of what yor
are doing. and also in view Of my oE,
experience with postal savings banl
work. and my still keen sympathy viii
J any movement that tends TO improve tn
condition Of the working classes. you WI
excnse my writing 10 You as I nave don
in this letter.
I am, dear sir. yours sincerely,
DAVID MATHEsON.
: IL Flsenason street. Norfolk. Va