The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1909-08-07
POSTAL SAVINGS ARE
DISCUSSED
INTERESTING PAPER READ AT
SESSION OF MONTANA BANK.
ERs' ASSOCIATION.

81 HaFre ana read by Secretary Bo-
CART which was very interesting. Mr..
Morris, like many bankers. Ii rot In
favor of the idea of postal savings
banks, and advances "A number of rea -
sons against the system. He spoke in
part a. follows:
Under the proposed law postoffIccs
are to receive and transmit To Wash
instun deposits In the sum Of 81 in
the first instance. This may he fol-
lowed by additional deposits Of not
less than 81 cents long as the to-
tai deposits do not exceed 500 in
any one month, and one person MAY
not have a total deposits In excess
Of s51n. Interest IL to he allowed on
such deposits at the rate Of psr
cent per annum: all funds 80 deposit
"d with the government are to he re-
deposited with such national banks as
shall be selected by the postmaster
general at TIL. rate IF - ner cent
per annum. If the national banxs do
not want such funds. then they are
to be invested in such state. terri
torial county ar municipal bonds az
shall be selected by the postmaster
general. with the advice If the see
rotary of the treasury and attorney
general.
The purposes ar. stated tn be:
First the forming Of habits of econ
"my aud thrift by the great mass of
tho people; second. providing u place
entirely above suspicion for tn. de-.
pnsii of funds. third. bringing into
circulation vast sums now boarded ar
sent out of the country by foreigners
The postmaster general argues that
the country affords no place for the
deposit of savings of adequate safety
and convenience. and points To the
small savings Of s3.e6o. ooa. 000 in proof
Of such conclusions. We answer that
one candidly desiring exact inrorma -
ton on the subject will not take the
position that deposits In strictly say
ings banks are the only savings of the
country, but will include the time
certificates of deposit which are is
sued by nearly all banks throughout
! the country and draw interest. and
will also include savings placed i'm
building and loan associations and Ger
tain kinds of insurance. These saw
lngs. added to that at the savings
bank deposits of the country. give us
an aggregate sum of over $4,000 600 0Gj
or savings OF nearly 500 per cent Of
the amount as stated by the postmas-
ter general
The states nf New York and Mas
sachusetts have savings" institutions
giving practically as strong security
to depesitors az that that will he
furnished by the postal savings banks.
just as convenient and accessible as
+ IL IN possible To la furnished. and cer-
tainly as much 80 as the postorfice
department can make them. for one
has but to place his remittance in
the United States mail and send il
In any point he may desire What
has been done by New York and Mas
sachusetts can and will be done by all
the states and territories.
Again. they say the postal savings
bank plan will bring money from its
hiding places and place IL mt the dis
pnsal of business In times Of panic
and that ownership being vested IN
the holder. more or less will always
he boarded an account ri the pecui-
iaritS of individuals and IL mvct the
esig"ncics in times of panic, when
boarding tendencies are always active.
II is the part Of congress IL prnSide
adequate currency laws With that flex-
Utility necessary In meet the strains
upon ii at such times. II il but the
haselesS vision of dreamer IL sup
pose that any law can he formulated
by which money may be drawn forth
a. IL by magic from Its hiding places
la h /,
is Ia have safe means of increasing
the supply af money IL meet the ex-
traofdinary demands upon ii AT such
times with equally positive provisions
for retiring the increased portion as
the demand II relieved.
Much has been said about the tnr-
eigner sending his money out at the
country because lie has nn faith in
our banking institutions. No matter
what the laws he. he will continue tn
send his earnings back tu the father
land. just a. the hoy who comes West
sends money back home. aud besides.
what the foreigner sends out af the
country is only against us In balance
Of trade, He doesn't send thu. actual
money. but leaves Ii at some bank ar
postoffice ana takes exchange in
bank draft ar foreign money order.
Money Is provided as ii medium IF
exchange and II intended t. remain
with and circulate among the people.
the mercantile establishments and
other business concerns. and ANY law
that tends IL divert money fran the
channel I'm which il Is intended it
should Clow necessarily defeats the