The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-08-22
The new POSTAL
SAVINGS BANK
SOMETHING ABOUT REeuLA-
TIoNs, AMOUNT THAT CAN BE
DEPOSITED, ETc-WILL EN-
COURAGE SAVING HARIT-WlLL
NOT INTERFERE WITH BANKS.

The announcement that the govern
n1ent had ordered the establishment of
savings bank at the postoffice in this
city attracted quite a little attention
last evening. The formal orders have
not yet been received, and it will prob
ably be about a month before the sys-
tenn goes into force here.
1t has been announced that before a
year more passed the government
would establish these banks at all post
offices Of the first, second and third
classes in the country, and probably
also at the money order offices Of the
fourth class.
Forum representative made some
inquiries at the local postofflce, and
found that per cent was paid on de-
posits, and every safeguard was thrown
around the funds by the department.
They could be drawn out at any time,
but the interest was forfeited IL the
money had not been on deposit for a
year. The deposit of any one person
is limited to $500.
At least IS per cent Of the funds
must be placed in local banks, provided
they will pay the government az per
cent
When a depositor has $40 on deposit
or any multiple thereof, he can pur-
chase a government bond of that de-
nomination, which will draw IA per
cent interest.
The postmaster was asked IL he
thought the system would be used much
here, and the reply was as follows:
II do not anticipate any great rush
in Fargo, as the banks here are strong
and people have confidence in them;
these fiduciary institutions also pay
much more than the government does
in the way of interest. The postal
savings will not interfere in any way
with the savings institutions of the
city, but at the same time 1t ought to
help the banks as 1t will assist in form
ing the habit of saving on behalf Of all
classes of people. When they once get
started they will finally take the insti-
tuition which will give them the best
interest.
There is another class of citizens
here who will probably avail them
selves of the postal savings. There are
many people who go to the postofice
and buy a postal order payable to
the actual cash. Sometimes these are
held for years. At the end of each
year they turn in the old order, pay
the fees for new one, and simply
hold this order. The last time this
matter was looked up, one man in this
city had seven orders, each payable to
himself, and each calling for 800;
another had three Of these 800 orders,
and several had one each of this
amount. The amount of money hoard
ed thus in Fargo was about $4,000. The
postal savings ought to get some of
these funds, as the same safeguards
are thrown around these deposits as
the postal orders, and the same facili-
ties are allowed in regard to cashing
them. If they are allowed to remain
on deposit from Jan. / Of one year to
the first of the next year, the small
rate Of interest can also be secured al
lowed by the government, instead of
having the annual expense of renewing
the order.
"In addition to the education in re-
gard to savlng-especially of children,
the bond proposition is a most val
liable one-not because of the interest
secured-but because every man, wom-
an or child who has even a $40 bona
of the government is apt to become a
better citizen, and our government will
consequently become more stable. Our
bonds should be in the hands of the
people of this country-not in the fl
nancial institutions of foreign coun-
tries, or even simply In our own banks
and trust companies. France fur
nishes a good example Of the effect
of having it's securities in the hands
of the common people. This educa-
tional feature of investing in the secur-
tiles of our own country is the one
which appeals TO me, as one that will
make a better government and a bet
ter country even than we have today
one more stahle-without danger of
revolution-and one where all the peo-
pie will take an intelligent interest in
assisting to do all possible to have the
best done in politics, because their
pocketbooks will be affected, by hav-
ing unsound laws on the statute books
or unsafe men in office"