The wageworker. (Lincoln, Neb.) 1904-????, 1910-09-02
POSTAL SAVINGS,
Provisions of the System Briefly
Summarized.
DOLLAR STARTS ACCOUNT.

|
lnendations from the postoffice depart.
ment and debate by congress. bill
providing for the creation Of a 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 it to
force the net through as a party meas
ure
Such a 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
lernment competition, but the act is
designed primarily for those who have
ordinary banks. In communities where
banks are numerous, safe and well
Established it is doubtful if the regu-
lar savings bank business will be ap-
Ipreciably affected. In other words, the
Ipostoffice department will occupy a
new field instead of dividing one that
is already pre-empted.
| The main provisions Of the bill can
Ibe briefly summarized. Any person ten
years old or over may have one ac-
count. A married woman may deposit
lin her own name, free from control or
interference by her husband. Desig-
mated postofhces will receive deposits
fof 81 or a multiple, but, further,
| fho oil hot
postal savings card may be purchased
to which may be attached special
I''postal savings stamps" Such a card
with nine stamps is to be accepted as
ia deposit of 81. Accounts are limit
ed to $500, and not over 500 may
he deposited in one month. The gov
eminent guarantees repayment of the
principal upon demand, with per
cent interest. Depositors, if they de-
sire, may exchange $50 or multiples Of
$50 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 2A per cent interest.
Five per cent of the total moneys re-
!
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posits may be withdrawn by the gov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.
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 of the act, which specifies
that depositor shall. upon the open
ing Of an account. receive a pass book
provided that the postmaster general
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
than 81 may be accumulated for de-
post. is, as Congressman Parsons said
in his speech of June 20: Zone of the
best provisions in this bill This
scheme will allow savings in ten cent
amounts. 1t is in line with a very no.
BILE charity which allows savings in one
cent amounts. l 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 r. Barnard" The Penny Provi-
dent fund does not pay interest.
The interest on the part of such
social workers which led them to es-
tablish such organizations as the Prov
ident 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,
pnd the collections made at settlements
hnd churches can be deposited with
the postoftice. This is done in Eng
land. 1t is even possible, according to
Mr.. Barnard, if 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.
! Tie postal savings banks will not
open for business until 1911, so that
1t 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