The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1910-08-05
WILL Be SOME BIG JOB
FOR YOUR UNCLE SAM
THIS STARTING IN TO DO THE
BANKING BUSINESS.
Government Figures on Having Ten
Million Officials; Will Have to
Have Army of BoOkkeepers and
Accountants; Outlay of Passbooks
and Ledgers Committee Now at
Work Planning for Systems.

Washington, D.. c., August, 3.-The
work of setting uhele Sam up in bust
ness as banker TO his people is about
the most soul trying task ever under
taken by the officials of the postoffice
department. The committee of postal
department heads appointed to work
out plan of operating postal savings
banks will begin this week to hold
night as well as day sessions in an
effort to reach a solution of the per-
picking problem.
The more officials study the postal
bank law the more they are amazed
by the complications concealed in so
simple q statute. In the first place
they have discovered that there really
is no limit TO the amount of money
that can be poured into the postal
banks. The law limits deposits to
$500, but it also provides that deposits
which draw two per cent interest may
be withdrawn and invested in govern
ment bonds in denominations of $40 and
up, drawing 21s per cent. If there
fore is foreseen that the limitation will
operate to multiply the transactions
of depositing and withdrawing, thus
increasing the work of bookkeeping
tremendously.
Figure on 100000 DepOsitOrs.
The government is figuring on hav-
ing 100000 depositors and with such
a prospect every frill that is added
means stupendous expense of money
and labor in operating the system.
The provision for saving fractional
parts of dollar by purchasing cards
and affixing ten cent stamps is too
costly and bothersome in the view of
the committee, which holds that con-
gress should have limited deposits to
81 and mltiples Thereof
But the biggest problem is that of
the bookkeeping system. In Great
Britain and Canada books are kept at
a central office where interest is com
puted and all transactions recorded.
When a depositor withdraws money his
pass book is sent to the central office
and returned before he is given his
money. In this way he can deposit
at any postal bank office or withdraw
from any office.
If this plan should be adopted in
this country a force of 1000 boolSkeep-
ers would be required to keep 100000
ledgers at the central office.
The probability is that the committee
will decide to impose bookkeeping and
computation of interest upon local
postmasters, though a central office
will be maintained for recording trans
actions. A depositor will be required
to deposit and withdraw at his home
office. That will obviate the necessity
of employing 1000 bookkeepers as in a
majority of offices the books will be
kept by the postmaster or his regular
assistant.
Object to Certificate Plan,
The committee has considered the
feasibility of a substitute for pass
books and for individual ledger ac-
counts. 1t has given hearings to an
inventor of a certificate which is
punched with the amount of deposit
and interest. But the objection is
made that the adoption of certificate
would be tantamount to the creation of
subsidiary currency which would be
boarded in mattresses and stockings
Just rs is money which government
seeks to. draw from it's hiding places.
So the committee practically has de-
cded that there is no escaping an in
vestment in 100000 ledsers and 100000
600 pass books and it will be mainly
for this equipment that the 100000
initial appropriations will be expended