The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1910-07-14
EXPLAINS POSTAL
SAYINGS Law

inspector in charge of his district, de-
livered an address ON "Postal Savings
Banks 'at the recent convention of the
Utah Postmasters association at Og-
den. His discussion follows:
"While savings banks were estab-
lished a little more than a century ago,
the first postal savings bank system
was put in operation in England in
1861. Since that time the system has
been Incorporated into the postal SER
vice of every great nation in the worll
except Germany, and great many of
the smaller nations, the United States
being the last in the field. With ref
erence to Germany, it should be noted
that the place of the uostal savings
bank is filed by system of municipal
banks which render the postal savings
bank unnecessary.
"The savings bank system is per-
haps more highly developed and more
extensively utilized in the eastern part
of our own country than in any other
place in the world. Statistics show
that one-half of the entire population
of the state of Connecticut and one
third of the population of the state of
New York have savings bank accounts,
so that if other portions of the coun-
try were as well provided with saving
facilities there would be no demand,
and perhaps no justification, for the
establishment of postal savings banks.
But that there is such demand is
shown by the fact that in the year end
ing March 81, 1908, eight million dol
lars was paid at first and second class
postofices alone for United States
money orders, and this money was not
only without interest, but cost 80 cents
hundred simply for the purpose of
having the money securely kept. Sew
enty-fve million dollars is sent out Of
the country annually by means of in
ternational money orders; nineteen
millions of this amount goes to Italy,
and while considerable proportion of
this money is remitted for the purpose
of paying the passage of relatives OF
the remitters to this country. it il
known that the larger part of it IL
sent for investment in the savings
banks of foreign countries and the use
of the money is thus lost to us.
Urged by Roosevelt.
bank system was strongly urged by
President Roosevelt in his message tc
congress in 1908, and by President Taft
in his message in December, 1909
President Taft also made the postal
savings bank bill the subject of a
speech at Milwaukee Wis, on Decem-
Der II, 1909.
cit is estimated that about one bill
lion dollars in cash is kept out of cir
culation by being boarded, and that
more than half of this amount will be
restored to circulation when the postal
savings depository system is in sue
cessful operation. President Taft, in
his Milwaukee speech, already men
toned. states that those savings banks
will furnish us five hundred or six hun
dred millions, and that is very tidy
pile to have around for the govern
ment to use legitimately in order to
carry on any financial operations.
President Taft as governor of the Phil
ippines, established postal savings
system in those islands in 1906. in
1909 there were 1910 accounts, nearly
5000 of which were opened by Fill
pinos. But, on the other hand, we
forced into liquidation system of pos
tai savings banks which had been in
successful operation for fourteen years
when the postoffices in the territory
of Hawaii were taken over by our
postoffice department in 1900.
fThe great English statesman, Will
liam f. Gladstone, in reviewing his
record near the close of his political
career, made this statement twenty
seven years after the British postal
savings banks had been established:
" 'The postoffice savings bank is the
most important institution which has
been created in the last fifty years for
the welfare of the people and the state.
I consider the act of 1861, which call
ed the institution into existence, as the
most useful and fruitful of my long
career
Details Of System.
"But the convention will probably
he more interested in the details of the
system under which we are to operate
than in any prolonged discussion of the
benefits of postal savings banks. The
law provides that the system shall be
controlled by a board of trustees con-
sisting Of the postmaster general, the
secretary of the treasury and the at
torney general, who shall make such
regulations for the conduct of the
business, and establish the repositories
at such postoffices as they may desig-
nate. It provides that savings &C.
count may be opened by any person of
the age of 10 years or over, but that
at least 81 must be deposited to open
the account. In order that smaller
amounts may be accumulated for de
posit, a postal savinsgs card to cost 10
cents is provided for, to which are to
be attached postal savings stamps of
the denomination of 10 cents, and the
card with nine stamps attached may be
used for opening an account or for
making deposit after an account has
been opened Not more than 500 may
be deposited in a month and the
amount of the deposit, including in
terest, shall not exceed $500. The
funds so deposited draw interest at
the rate of two per cent per annum,
but whenever 500 or any multiple of
500 have been accumulated, such
amounts may be exchanged for United
C+atc- hapds which shall hear inter