Kingsbury County independent. (DeSmet, Kingsbury County, S.D.) 1894-1929, 1909-01-22
meyer TELLS NATIoNS
NEED OF POSTAL BANKS
Gives Administrations Reasons
for Immediate Action on
Postal Savings Measure.

Chicago, lam. 13.-Pestmastcr General
Meyer has added a new factor to the pos
tai savings debate In the Senate by maxi
ing public at last extensive facts and fg-
ures gathered by the postofnce 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 s'Woman's World Of
Chicago. he makes clear the attitude OF
the administration toward the bills now
before congress and makes a vigorous de-
Tense of a system which he claims will
bring into circulation fully q 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 tho
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 have
reports from postmasters that they nave
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, Al, on which amount fees OF $6. 900
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 postoffice Inspector has reported that
one family residing near q small postofacs
In the state OF washington has $11.O 900 on
deposit In the postal banks sf British
Columbia.
In some parts OF the United States tho
need OF postal savings banks Is not az
urgently felt as in others. In New Eng
land the average distance OF the savings
bank from the postoffice Is about Is miles,:
In the Middle and Western states 1t is
ohnS,f OK x,tiaS. - -. .4.4x- M
miles, and In the Pacific siepe states IS
miles. The postal savings bank would
reach every community.
$500, oo0, 00e in Hiding.
while the money In savings banks
mounts to $3.50. SIS. N5. only lie per cent.
or sos .54S, is in 30 states. The II other
states are fortunate In possessing savings
bank deposits to the amount Of g. &c., 45.-
42. or 98.4 per cent. This Is OF great adj
vantage to the latter states. as It Increases
their financial 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-
ft 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 or
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 his country are made
apparent by the fact that there are COCA
postofnces, 4o.0os of which are money order
postoffices.
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 q
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.
1.-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 int the banking business or
to compete with existing savings institu-
tions which pay. In a great many In
stances, 4 per cent per annurn. On the
contrary. It is proposed to redeposit the
money which Is brought to the postoffices
In national n In the locality where II
Is first received. thus making 1t immedi-
htciy aVaiidpio lor Lne Hhancihi AHA pusi-
ness transactions OF the community to
which 1t properly belongs.
1.-THE expense to the government In con-
nection with the operation OF postal saw
ings banks would not be great. In Canada.
where s465. 900. 600 have been received sand
returned TO depssitors In the last 80 years.
and where at present $5o.0o0,0oo arc
on deposit, the total expense to the
central establishment at Toronto Isl
given as e0.e0o 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 tho
clerks handling such orders. and It is not
believed that additional employees would
ha paa3ad -