Middlebury register. (Middlebury, Vt.) 1886-1937, 1910-12-23
FRIDAY, DECEMBER 20, 1910.
POSTAL SAVINGS BANKS.
Notes on the Various Systems In
Operation In the Leading
Countries.

The United states mas Deen tne last
nation of Importance to establish postal
savings banks. Practically every other
nation has them in successful operation
now.
One of the latest publications of the
national monetary commission entitled
Notes on the postal savingS-bank sys-
tens of the leading countries shows
the growth and development of postal
savings banks in every quarter of the
earth, from the beginning in the United
Kingdom in 1861 to the present time,
when the system has been extended not
only through the continent of Europe
but to the colonies, even in Tasmania,
the federated Malay States, and south
ern Nigeria.
While the United States is this year
preparing for beginning with a. banks,
the far away gold coast of Africa has
800, 000in deposits; Tunis has more than
$1,000, 900; the Dutch East Indies have
$4,000, 900; Formosa, under Japanese
rule, has nearly 1000, 900, and Egypt
has nearly So, 600, 900.
In continental Europe and in greater
nations the system is much more extern
sive. In France there are more than
5000, 900 depositors, with average de-
posts of $50. Italy has 5000, 900 also.
with an average deposit of S55. Bel
GUM has 10000 with an average of
$63 and Russia has |. 700. 900, with an
average of S72. Japan which pays the
highest interest of all, has 5000, 900 de-
positors, with deposits of SAG, 900, 900,
but the average deposit is lowest of all,
only about SIS.
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 adj
ministration, with the annual amount of
profit or loss, are all made available in
this volume to anyone interested in the
subject. The volume also includes the
letters received from United States con-
suls in answer to 25 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.
The postal savings-bank system has
grown steadily, until in 1908 there were
over II, 900, 900 depositors, with deposits
of $781, 794, 533. For the whole period
from 1861 to 1908 "the actual surplus
profits covered into the treasury amount
to 81, JAP, 425." However, since 1902
there has been an annual average de-
felt of about $500, 900. 1.-THE cause for
that is found in the reduction of interest
from 2 "a to 21-2 per cent. on British
consols, in which the funds are chiefly
invested"
Canada has had postal savings-banks
since 1868. "Orignally it was provided
that the deposits should be invested in
Dominion securities, but in 1875 this
law was repealed and deposits are now
handed over to the Encouragement,
and Withdrawals are paid by him. This
creates floating indebtedness of APP
proximately SAT. 900, 900, payable on de-
mand." The interest paid was originally
per cent. but it was re duced to 3 1-2
per cent. in 1889 and to 3 per cent. in
1897. The number of depositors iii 1896
was but 80 for each 1000 population,
where the United Kingdom had more
than 200 for each 1000. However, the
average deposits are about $500 in Can
ada, while they are only SIS IN the
United Kingdom.
Postal savings-banks in France date
from 1882. Mr. Cichery, the under
secretary of State, in advocating the
establishment of postal savings sys.
TEN, said: 1.-THE State has to achieve
what can not be done by private initia-
tive. When private enterprise car
maintain its object the State must dis
appear, but when private initiative is
powerless it is the duty of the State to
lend its assistance. 1t is because the
private savings-bank cannot meet al
the wants of the thrifty population that
we submitted the bill which is under
consideration. These words might
well have been used with reference tC
the United States previous to the pas
sage of the recent savings-bank act
The rate of interest paid in France is
PIP per cent. The deposits are invest
ed in French government securities,
in negotiable obligations of the depart
ments, communes, and the chamber OF
commerce, in real estate, or in the
since 1895 has ranged from $500, 600 tC
$1,000, 600. A reserve fund of ovel
$40, 600, 600 had been accumulated by
December 81, 1907 This constitutes {
safety fund against losses.
Italy, Belgium, Russia, the Neither
lands, Austria, Hungary, Sweden,
Egypt and many other countries have
postal savings-banks in successful oper-
alton.
The postal savings banks system OF
the various countries have many desir-
able and convenient features, some Pc
culiar to one or two countries, others
common to all. School children are
quite generally encouraged to open saw
ings accounts in the United Kingdom
more than 5000 schools have adopted a
school section of the postal savings
bank. Scholarship grants and prizes
are given in the form of savings de-