The labor journal. [volume] (Everett, Wash.) 1909-1976, 1910-09-02
POSTAL SAVINGS.
Provisions of the System Briefly
Summarized.
DOLLAR STARTS ACCOUNT.

Purchase OF a Ten Cent Postal Saw
ines Card-Government Guarantees
Repayment on Demand.
After about thirty years of recon-
mendations from the postoffice depart.
ment and debate by congress. a bill
providing for the creation Of postal
savings bank system has become law.
Congress displayed little interest in the
present measure. In all probability
the bill would have failed to pass had
the president not put the full weight
Of the administration behind ii to
force the act through as a party meas
ure.
Such system has been an obvious
need for years. particularly in districts
which have no savings banks Many
banks have opposed the measure, fear
ing that they would suffer from gov
eminent competition. but the act is
designed primarily for those who have
only small sums and who distrust
banks are numerous. safe and well
established 1t Is doubtful If the regu-
| lar savings bank business will be ap-
preciably affected. In other words, the
postofice department will occupy a
new field instead of dividing one that
is already pre-empted.
The main provisions of the bill can
be briefly summarized. Any person ten
years old or over may have one ac-
count A married woman may deposit
In her own name, free from control or
interference by her husband. Desig-
mated postoffices will receive deposits
of 81 or multiple, but, further.
the act also provides that ten cent
postal savings card may be purchased
20 which may be attached special
postal savings stamps" Such a card
with nine stamps is to be accepted as
ii deposit Of 81. Accounts are limit
ed to $500, and not over 500 may
be deposited in one month. The gov
eminent guarantees repayment Of the
principal upon demand, with 2 per
cent interest. Depositors, If they de-
sire, may exchange $50 or multiples Of
500 for United States bonds bearing
interest at 21a per cent.
The money accumulated in the postal
savings banks Is to be deposited. main
ly in the neighboring state and ma
tional banks at pa per cent interest.
Five per cent of the total moneys re-
ceived is to be retained by the secre-
tary of the treasury as cash reserve
Not more than 80 per cent Of the de-
posits may be withdrawn by the gov
eminent for investment in United
| States bonds.
The whole control is vested in a
board Of trustees consisting Of the
| postmaster general, the secretary of
the treasury and the attorney general.
This board is to designate the postal
savings depository offices, and it will
draft all the rules and regulations.
Congress evidently intended to give the
board a free hand, as may be seen in
| section 5 of the act, which specifies
that depositor shall. upon the open
| ing of an account, receive pass book
|
may, with the approval of the board of
| trustees, adopt some other device In
| lieu of it. The bill carries an appro-
priation Of 100000.
| The expressed intent of the law, to
provide means whereby sums smaller
han 81 may be accumulated for de-
| osit, Is, as Congressman Parsons said
| e - thn
best provisions in this bill. This
scheme will allow savings in ten cent
amounts. 1t is in line with very no
BILE charity which allows savings in one
| cent amounts. | refer to the charity
known as the Penny Provident fund,
which was started in New York TWEEN
ty-one years ago, has enabled thou
sands of children in that city to save
pennies and has taught them habits Of
thrift This charity was originated by
| Otto II. Barnard" The Penny Provi-
dent fund does not pay interest.
| The interest on the part of such
social workers which led them to es-
ldent Loan society and the Penny
Provident fund should make them
work to aid In establishing the postal
savings system. The many independ-
ent settlement savings funds for chill
dren offer an agency for advertising
the postal savings banks. Every
stamp station for the Penny Provident
fund can eventually be employed In
the same way. 1t should be fairly
easy to ask the poor, the ignorant and
the foreigner to trust the government,
and the collections made at settlements
and churches can be deposited with
the postoffice This is done in Eng
land. 1t is even possible, according to
Mr. Barnard, IL the postal savings
system is established in New York city
some time In the future. that the
Penny Provident fund may be dis
continued as being no longer needed.
The postal savings banks will not
open for business until 1911. so that
it is difficult to anticipate details OF
arrangements. One obvious hope that
all must have who wish the scheme to
succeed is that the rules shall be made
simple and not burdensome or COM
plicated. A matter that will undoubt-
eddy be provided for is to arrange so
that soldiers stationed In the Philip
pines. Porto Rico or Alaska may re-
init money through the war depart
ment for deposit In the postal savings
banks at home. The British Postof-
fee Savings bank received over 25,000
danoatts a vaar of this kind Survey