The Washington herald., 1910-12-19
POSTAL BANKS GROW
System to Be Inaugurated
Here January 3.
UNITED STATES LAST TO ACT
Publication of Monetary Commits
sion shows This Nation to BE Last
of Important Governments 10
Adopt System Which Has Been
Operated with Great Success.

The postal savings bank system will
be inaugurated on January next the
first working day Of the new year, in
the different cities of the country which
have been selected for an experimental
test of the system. Postmaster General
Hitchcock announced last night that the
work OF drawing up regulations, forms.
and instructions 10 postmasters anc 10
the prospective depositors had progressed
so satisfactorily as TO assure the begin
ming of operations at experimental offices
on that date. One Office viii be opened
in each state and Territory to receive
deposits, with a view TO testing the sys-
tenn which has been devised
In the establishing of the postal saw
ings banks the United States ranks last
among the nations of Importance, accord
ing to a publication, Notes on the pos
tai savings bank system of the leading
countries" just issued by the National
Monetary Commission. Even the small
est a..5 most unimportant countries OF
Africa and Asia have had the system in
successful operation for years, the pub
LEGATION states.
The history and organization Of the
postal savings bank systems OF the lead
ing foreign countries, the regulations in
various countries concerning the with
drawal OF funds, statistics showing the
growth in the number of depositors and
amount of deposits, and the cost of ad-
mlnistration, with the annual amount of
profit or loss, are all made available in
this volume to any one interested in the
subject The volume also includes the
letters received from United States con-
suls in answer to twenty-five pertinent
questions bearing on the nature and
operation of postal savings banks in
certain foreign countries These answers
are tabulated in most convenient form.
The United Kingdom was the pioneer.
having established her system in 1861.
This postal savings bank system has
grown steadily, until in 1868 there were
over 100000 depostors, with deposits of
$sS1. 80, SO For the whole period from
1861 TO 1908 ''the actual surplus profits
covered into the treasury amount to Sll.-
49, rs" However, since 1902 there has
been an annual average deficit of about
$4,000. THE cause for this is found in
the reduction of interest from pa to pa
per cent on British consols. in which the
funds are chiefly invested
Canada has had postal savings banks
since 1868.
Canada's System a Success.
The number of depositors in 1896 was
but 30 for each 1000 population, while the
United Kingdom had more than zoo for
each 1900, However. the average de-
posits are about 500 In Canada. while
they are only SO in the United Kingdom.
Postal savings banks in France date
from 1SS2. The rate of interest paid In
France is ~ per cent The deposits are
invested I'm French government securi-
ties. in negotiable obligations of the de-
partments, communes, and the chamber
Of commerce, in real estate, or in the
credit foncier" The annual profit since
1895 has ranged from $4,000 to $1,000, 600
A reserve fund OF over $4,000. 900 had
been accumulated by December 81. 1907
This constitutes a safety fund against
losses.
The postal savings bank system of the
various countries have many desirable
and convenient features, some peculiar TO
one or two countries. others common to
al. School children are quite generally