The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-01-17

postal savings debate in the Senate BY
making public facts and figures gathered
by the POst-Ofice Department. showing
the results OF the postal savings bank
system abroad and probable results in 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 Congress and makes
vigorous defense OF a system which he
claims VIII bring into circulation fully
half billion dollars not to-day placed in
any bank owing 10 lack OF confidence or
facilities. The article is a summing I'D
Of the arguments for governmental bank
ing, and contains many facts for the first
time disclosed.
As an evidence OF the demand for pos
tai savings banks" says Mr.. Meyer, we
have reports from .pOstmasters that they
have been compelled TO refuse 10 ac-
cept deposits offered By foreigners for
safekeeping, and also that our own
people have brought postal money OF
ders during the last year payable
TO themselves to the extent Of SS1G4, A.
greatest extent in Arizona, Colorado,
Kansas, Missouri, Montana, Nebraska,
Nevada. Oklahoma, Ohio. Oregon. Texas.
and Washington
One Family Has $1,000.
a post-office inspector has reported
that one family residing near q small
post-oface in the State Of Washington has
S11,0o0 on deposit in the postal banks OF
British Columbia
Under the bill now before the Senate
with a favorable report from the Com
Tnittee on Post-offices and Pest Roads the
money would be widely distributed. as Il
would be placed in the national banks in
the districts where the deposits were first
brought TO the post-ofices The govern
ment would not 90 into the banking
business The national banks are 10 pay
not less than ~ per cent for the
deposits. the government in turn 10
pay the depOsitOrs per cent. re-
tanning ORe-fOurth OF 1 per cent in
order that the system may be seIf-sus-
tanning No interest would be paid by the
government on deposits over 800.
The deposits would be guaranteed BIZ
the government, as it would make itself
responsible by receiving them.
In some parts Of the United States
the need Of postal savings banks is not
as urgently felt as in others. In New
England the average distance Of the saw
ings bank from the pOst-Off1Ce IS about %
miles; in the Middle and Western States
II IS about . miles. in the Southern
States 9 miles. and in the Pacific slope
States s. miles The postal savings bank
would reach ever community
S5OO.OOO,OOO in Hiding Now.
While the money in savings banks
amounts 20 $3.50 553. 945. only Is per cent.
or s10-2oS,552- is in p States The 4 other
States are fortunate IN possessing savings
bank deposits 10 the amount OF $3.50. 26.-
zO3, or ga per cent This IS Of great ad-
vantage 70 the latter States. as IL in
Creases their financial resources and
thus aids IN their development
In the g States referred TO there are
many localities where there are no saw
tngs banks and in some cases no banks
Of any kind II is there that considerable
money is held in hiding. which is neither
absolutely safe nor in circulation for the
benefit Of the community. Il has been
estimated that altogether fully half a
billion dollars not to-day placed IN any
hank due 10 want OF opportunity or lack
Of confidence. might be brought back into
circulation through the agency Of postal
savings banks.
The additional opportunities for saw
ing that can be afforded the people by
postal savings banks IN this country are
made apparent by the fact that there are
6o,624 pOst-ofices, 1000 Of which are
money-order post-0fices-
Would Help Foreigners.
The foreigner should be encouraged 10
deposit his earnings. because after he
has accumulated few hundred dollars
he viii not be content 10 receive merely
a per cent interest. but viii seek 10 DIR
chase a home; and the moment he &C.
QuireS real property in this country he
becomes 4 better citizen. IS more actively
interested in the affairs Of the nation. and
at the same time places himself and his
dependents beyond a likelihood Of becom-
ing public charges.
The rate Of interest which the deDart- Z
ment has recommended. , per cent Der an
nun. is evidence that il is not the intsn-
ton 70 90 into the banking business or
10 compete with existing savings institu-
tons which pay, in a great many in
stances. I per cent per annum. On the
contrary, II Is proposed to redeDosit the
money which IS brought 10 the post-of1ces
IN national banks in the locality where Il
IS first received. thus making il imme-
diately available for the financial and
business transactions Of the community 70
which it properly belongs.
Expense Of Postal Banking.
The expense to the government in con
nection with the operation Of postal saw
ings banks would not be great. In Cana
da, where 1855. o0O.O00 has been received
and returned TO depositors in the last
thirty-nine years, and where at present
S50.o00,000 is on deposit, the total ex-
pense TO the central establishment Al
Toronto IS given as $4,000 annually. Out /
side Of that city the work eincident 10 .
the system IS included In the duties Of
regular postal employees. In the United /
States the work could be performed in /
mOney-Orler Offices by the clerks handling 4
such orders, and IL is not believed that
additional employees would be needed.
THE system proposed contemplates the I
daily reporting Of deposits TO the Post I
master General. who would acknowledge /
receipt directly TO the patrons. The maxi !
mum amount which would be received 4
from any individual Is placed at 500 4
Postal savings deposits would not be I
liable 20 demand. seizure, OF detention IN 4
der legal processes against the depOsitor /
AS the Post-Off1ce Department govern I
meno IS preferred creditor, IL would not i
demand collateral from the banks in the \
way OF bonds There would De the safe I
guard OF the Comptroller Of the Currency 1
reporting regularly on the standing OF the 4
banks that are used as repositories. and 4
the double liability Of the stockholders Of I
the national banks would be an additional /
assurance OF the security Of the deposits"
Side Path.
From Ha-pe-s Weekly
I suppose" said the facetious
stranger, watching a workman spread
a CARPET from the church 5oo- 20 -.