The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-12-25
CHILDREN USE
POSTAL BANKS
Monetary Commission De-
scribes Institution Which
U. s. Will Give Trial.
SYSTEM HAS PROVED TO BE
USEFUL in OTHER LANDS
Even FOrmosa, Under Japanese
Rule, Has Adopted This
Plan of Saving.

tion has them in successful operation
now.
One Of the latest publications of the
national monetary commission entitled
:" Notes on the postal savings bank sys-
TENS Of the leading Countries shows
the growth and development Of postal
savings banks in every quarter Of the
earth, from the beginning in the United
Kingdom in 1861 to the present time.
when the system has been extended not
only through the continent of Europe
but to the colonies, even in Tasmania,
the federated Malay states, and south
ern Nigeria.
While the United States is this year
preparing. for, a beginning with forty.
fur banks, the far-awav gold coast
of Africa has 100000 in deposits;
Iunis has more than $1,00o.00 the
Dutch East Indies have S2:0o0,000: For.
mosa, under Japanese rule, has nearly
$1,000, 900, and Egypt has nearly
S2,000,00
More Extensive in Europe.
In continental Europe and In greater
nations the system is much more exten.
slve. In France there are more than
100000 depositors, with an average
dc-osit of $50. Italy has 100000 also,
with an average deposit Of $50 Bel
500, and Russia has 100000, with an
average of s72. Japan, which pays the
highest interest of all, has 100000 de.
positors. with deposits of $4,000, 900,
but the average deposit is lowest of all,
only about SIS.
The history and organization of the
postal savings bank system Of the lead
Ing foreign countries, the regulations in
various countries concerning the with
drawals of funds. statistics showing the
growth in the number of depositors and
amount of deposits, and the cost Of ad.
minlstratlon, with the annual amount
of profit or loss, are all made available
in this volume to anyone interested in
the subject. The volume also includes
the letters received from United States
copsuls in answer to twenty five peril
nent questions bearing on the nature
and operation of postal savings banks
III certain foreign countries, These an
swers are tabulated in most convenient
form.
Old Institution in Canada.
The United Kingdom was the pioneer,
having established her system in 1861,
This postal savings bank system has
grown steadily, until in 1908 there were
over II 100000 depositors, with deposits
IL
from 1861 to 1908, "the actual surplus
profits covered into the treasury
amount to s11,142,425." However, since
1902 there has been an annual average
deficit OF about S500000. "The cause
for this is found in the reduction of
interest from 2sa to 215 per. cent on
British consols, in which the funds are
chiefly invested -
Canada has had postal savings banks
Or,r 11y, o2
that the deposits should be invested in
Dominion securities. but in 1875 this
law was repealed and deposits are now
handed over TO the receiver general,
and Withdrawals are paid by him. This
creates floating indebtedness of ap,
proximately $47 100000 payable on de.
mand. - The interest paid was origi-
3b per cent in 1889 and to per cent
in 1897. The number Of depositors in
1896 were but 30 for each 1000 popula-
ton, while the United Kingdom had
more than 600 for each 1000, How
ever, the average deposits are about
$500 in Canada, while they are only s75
in the United Kingdom.
Private Banks Insufficient.
Postal savings banks in France date
from 1882, Mr., Cochery, the under
secretary of state, in advocating the
establishment Of postal savings sys-
tenn, said: ''The state has to achieve
what can not be dono by private in
itiative. When private enterprise can
attain its object the state must disap-
pear, but when private initiative is
powerless it is the duty of the state to
lend its assistance. It is because the
private savings banks can not meet all
the wants OF the thrifty population
hat we submitted the bill which is
adler consideration. These words
might we'll have been used with refer"
ence to tn, United States previous to
the passage Of the recent savings bank
act, The rate of interest paid in France
is 2h per cent. The deposits are in
v-ted in "Freueh government securi
ties, in negotiable obligations of the
departments, communes, and the cham
tse pea credit on it foneier.' The annual profit
since 1895 has ranged from 100000 to
ST 900 900, A reserve fund Of over $10,-
100000 had been accumulated by De.
cember 81, 1907. This constitutes a
safety fund against losses.
Italy, Belgium, Russia, the Neither.
lands, Austria, Hungary, Sweden, Egypt
and many other countries have postal
savings banks in successfull operation.
School Children Depositors.
The postal savings bank systems Of
tho various countries have many desir-
able and convenient features, some pc.
euliar to one or two countries, others
common to nll. School children are
quite generally encouraged to open saw
inga accounts, In the United King
dom more than 5000 schools have adopt"
ed a school section of the postal saw.
lngs bank. Scholarship grants and
prizes are given IN tho form of say
[ngs deposit aeeeunt, French men-of
war carry branch banks for the. CON
venienee Of sallora, British soldiers
stationed abroad may make deposits IN
war office public accounts. If de.
posit account has reached the maxi
mum allowed, the postal savlngs banks
Of the United Kingdom, Canada,
France, Italy, and other countries will
invest any additional amount deposited