The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1909-01-14
MEYER TELLS NATIONS
NEED OF POSTAL BANKS
Gives Administrations Reasons
for Immediate Action On
Postal Savings Measure.

Chicago, Jan. 13.-Postmaster General
Meyer has added a new factor to the pos
tai savings debate in the Senate by mt2s-
Ing public at last extensive facts and fig-
ures gathered by the postofice depart
ment showing the results OF the postal
savings bank system abroad and prob
able results i'm this country. In an article
written for the "Woman's World OF
Chicago. he makes clear the attitude OF
the administration toward the bills now
before ongress and makes a vigorous de-
tense of a system which he claims will
bring into circulation fully a half billion
dollars not today placed in any bank, owing
10 lack OF confidence or facilities. The ar
ticle Is the strongest summing up OF the
arguments for governmental banking vet
made and contains many new facts for the
first time disclosed.
AS an evidence of the demand for postal
savings banks says Mr.. Meyer, we have
reports from postmasters that they have
been compelled to refuse to accept depos-
its offered by foreigners for safe keeping.
and also that our own people have brought
postal money orders during the last year
payable to themselves to the extent OF
tS.lO4,44L on which amount fees OF $25, 600
We're paid. These money orders were
bought to the greatest extent in the states
OF Arizona, Colorado, Kansas. Missouri,
Montana, Nebraska, Nevada, Oklahoma
ohio, Oregon, Texas and Washington.
"A postoffice inspector has reported that
one family residing near a small postoffce
in the state OF Washington has $1,000 on
deposit In the postal banks of British
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
a n the average distance OF the savings
bank from the postofhce is about is miles:
In the Middle and Western states IL Is
about Is miles; In the Southern states SO
miles, and in the Pacific slope states So
miles. The postal savings ank would
reach every community. ..
$500, 00o, 900 in Hiding.
"While the money in savings AMI
amounts to $500. Sos, 945, only 1.6 per cent,
or $O,S6,54S is in 80 states. The IA other
states are fortunate in possessing savings
bank deposits to the amount Of s., SOC, 245,-
402. or 1874 per cent. This is Of great adj
vantage to the latter states, as 1t increases
their financial resources and thus aid in
their development. TIKI. .. .-I.
I'm the 80 states referred to there are
man localities where there are no aging
banks and In 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-
ft of the community. 1t has been esti-
mated that altogether fully half a billion
dol!ar 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 60,6A
postoffces, 1900 of which are money order
postoffices. .." u. q
""The foreigner should be encouraged to
deposit his earnings. because after he has
accumulated a few hundred dollars he will
not be content to receive merely 2 per
cent Interest, but will seek to purchase a
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 a likelihood of becoming pub
lie charges. g.
The rate OF interest which the depart
ment has recommended, 2 per cent per
annum, Is evidence that 1t Is not the in
tentiOn to go into the banking business or
to compete with existing savings institu-
lions which pay. In a great many in
stances, 4 per cent per annum. On the
contrary, it is proposed to redeposit the
money which Is brought to the postoffices
IN national banks In the locality where 1t
is first received, thus making IT immedi-
ateiy 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. In Canada,
where $465 600, 900 have been received and
returned to depositors in the last 80 years,
and where at present $S0,0OO,O0 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 1t Is not
believed that additional employees would
be needed" .t'.