The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1909-01-14
MEYER TELLS NATION'S
NEED OF POSTAL BANKS
Gives Administrators Reasons
for Immediate Action on
Postal Savings Measure.

Meyer has added II new factor to the DOS
tai savings debate In the Senate by MD
Ing public at last extensive facts and fig
ures gathered by the postoffice depart
ment showing the results of the postal
savings bank system abroad and prob
able results in this country. In an article
written for the Woma World.,' of
Chicago. he makes clear the attitude of
the administration toward the bills now
before congress and makes IL vigorous de-
Tense of n system which he claims will
bring into circulation fully a half billion
dollars not today placed in any bank. owing
to lack OF confidence or facilities. The ar
ticle Is the strongest summing up of the
arguments for governmental banking yet
made and contains many new facts for The
first time disclosed
AS an evidence of the demand for postal
savings banks" says MIR. Meyer. we have
reports from postmastcrs that they have
been compelled to refuse to accept. depos-
It's Offered by foreigners for safe keepiua.
and also that our own people have brought
postal money orders during the last year
payable to themselves to the extent Of
S. o 40, on which amount fees of 81, 100
were paid. These money orders We're
bought to the greatest extent in the states
of Arizona. Colorado, Kansas, Missouri,
Montana, Nebra ska. Nevada, Oklahoma.
Ohio, Oregon, Texas and Washington.
"A pOstofice inspector has reported that
.AsS ~1AiAiS Java VIVA &" mo pOJloJIlSS
In the state OF Washington has N1,0Go OH
deposit In the postal banks of Brltis!,
Columbia.
I'm some parts of the United States the
need OF postal savings banks is not as
urgently felt as in others. In New Eng
land the average distance OF the savings
bank from the postofflce is about Is miles:
in the Middle and Western states it is
about 2S miles: In the Southern states So
miles. and in the Pacific slope states IS
miles. The postal savings bank would
reach every community.
$500, 100000 in Hiding.
While the money i'll savings banks
mounts to IS, $50, 553, 9945, only 1.6 per cent,
or $O,3o8.5is is in SO states. The IA other
states are fortunate i'll possessing savings
bank deposits to the amount of 81, $50, 245,-
402. or 1874 per cent. This is of great adj
vantage to the latter states, as 1t Increases
their financial resources and thus aids in
their development.
I'm the 81 states referred to there are
many localities where there are no savings
banks and fh some cases no banks of any
kind. 1t is there that considerable money
is held in hiding, which is neither abso-
lutely safe nor In circulation for the bene-
fit OF the community. 1t has been esti-
mated that altogether fully half a billion
dollars not today placed in any bank,
due to want of opportunity or lack of
confidence, might be brought back into
circulation through the agency of postal
savings banks.
The additional opportunities for saving
that can be afforded the people by postal
savings banks in this country are made
apparent by the fact that there are 60,624
postoffices, 10000 of which are money order
postOffices.
The foreigner should be encouraged to
deposit his earnings, because after he has
accumulated q few hundred dollars he will
not be content to receive merely 9 per
cent interest, but will seek to purchase q
home; and the moment he acquires real
property in this country he becomes a
better citizen, is more actively interested
in the affairs of the nation, and at the
same time places himself and his depend
ents beyond q likelihood Of becoming pub
lie charges.
THE rate OF interest which the depart
ment has recommended, 2 per cent per
annum, is evidence that it is not the in
tention to go into the banking business or
to compete with existing savings institu-
tons which pay, i'll a great many in
stances. 4 per cent per annum. On the
contrary, 1t is proposed to redeposit the
money which is brought to the postoffices
in national banks IN the locality where it
is first received, thus making it immedi-
ately available for the financial and bust
ness transactions of the community to
which it properly belongs.
THE expense to the government in con-
nection with the operation of postal saw
ings banks would not be great. Iii Canada,
where s465. co., 900 have been received and
returned to depositors in the last 80 years.
and where at present $780, 00,0W are
on deposit, the total expense to the
central establishment at Toronto is
given as $4,000 annually. outside
of that city the work incident
to the system is included in the du-
ties OF regular postal employees. In the
United States the work could be per-
formed in money order offices by the
clerks handling such orders, and it is not
believed that additional employees would
be needed"