The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1909-01-14
MEYER Tells NATlON'S
NEED OF POSTAL BANKS
Gives Administrations Reasons
for Immediate Action on
Postal Savings Measure.

1ElCdBO, JaA. 3.-EsOSIlQaSler 6GIleTdI
Meyer has added q new factor to the pos
tai savings debate in the Senate by max
ing public at last extensive facts and fg-
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 IN article
written for the .tWoman's World, II of
Chicago, he makes clear the attitude of
the administration toward the bills now
before 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
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 Mr.. Meyer. I'VE "a
reports from p-ostmasters hat 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
$S,lO4, 447. on which amount fees of $4,000
were 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 postoffics inspector has reported that
one family residing near a small postoffice
in the state OF Washington has $1,000 on
deposit in the postal banks of British
Columbia.
In 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 postofice is about 10 miles;
in the Middle and Western states it is
about Is miles; in the Southern states 3S
1,,tInc ~ mr. tn N1nA Doc; 40 Z
miles. The postal. savings bank would
reach every community.
$50O,oO0,0oo in Hiding.
While the money in savings banks
amounts to So, $50, SIS, 945, only 1.6 per cent,
or $40, S0S, 54S, is in 80 states. The IA other
states are fortunate in possessing savings
bank deposits to the amount of So, $780, 45,-
402. or 1874 per cent. This is of great adj
vantage to the latter states, as it increases
their %inancial resources and thus aids In
their development.
I'm the 80 states referred to there are
many localities where there are no savings
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-
fit of the community. 1t has been estf-
mated that altogether fully half a billion
dollars not today placed in any hank,
due to want of opportunity or lack of
confidence, might be brought back into
circulation through the agency of postal
savings banks.
1.-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
postofices. 10000 of which are money order
postoffices.
THE foreigner should be encouraged to
deposit his earnings, because after he has
accfrpol1Iafa6 a fauy hl1oAra5 1nllare ha will
not be content to receive merely 2 per
cent interest. but will seek to purchase a
home; n 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.
The rate of interest which the depart
ment has recommended, 2 per cent pei
annurn, is evidence that it is not the in
tention to go into the banking business OF
to compete with existing savings institu-
tons which pay, in a great many in
stances, 4 per cent per annum. On the
contrary, II is proposed to redeposit the
money which is brought to the postoffices
in national banks in the locality where II
Is first received, thus making it immedi.
ately available for the financial and bust
hess transactions of the community tc
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 s4s5 ,GG0,0 600 have been received ant
returned to depositors in the last SO years
and where at present $50,000,0C0 ar
on deposit. the total expense to TIL
central establishment at Toronto il
given as $4,000 annually. OUTSIDE
of that city the work inciden
to the system is included in the du
ties of regular postal employees. In thu
United States the work could be per
formed in money order offices by thu
clerks handling such orders, and it is no
believed thai additional employees woul'
be needed"