The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1911-08-15
POSTAL SAVINGS BANKS.

POSTAL SAVINGS BANKS.
No official announcement has been
made as yet, but there are grounds
| for believing that the Keokuk post
Office will at an early day be desig-
mated as a postal savings bank. The
arrangement contemplates the receipts |
Of money on deposit by the govern
ment A small rate of interest will
be paid on such deposits which will
be turned over to local banks which
les. The rules governing the deposit
/ of money in postal savings banks IN
this country do not permit of any one
person depositing more than $500 in
a local postal savings bank.
The role that such bank is ex-
pected to play in the community in
which it is located is we'll set forth
in an article written by Postmaster
D. A. Campbell of Chicago. In view
Of the probabilities of the near future
information concerning postal savings
banks is of local interest at the pres
ent time. Mr.. Campbell writes:
Money deposited in the postal saw
ings banks is guaranteed by the
United States government No other
savings institution can offer guar
antee quite as strong as this. 1t is
} not too much to say, therefore, that
the absolute i'npossibility OF losing
j. money intrusted to postal savings
bank is the chief advantage the sys-
tenn holds out to large class OF
people who have hitherto avoided
: banks of all sorts.
: Next to this and practically quite
I as important, Is the fact that in times
S of panic, when to protect their Gus
toners the ordinary savings banks
are obliged to enforce the rule requir-
!. ms thirty and sixty days notice of
. withdrawal, and have to resort to the
issuance of temporary currency, the
depositor in the postal savings bank
. is not obliged to give any notice what
e ever, but may withdraw all OF part OF
his deposit whenever he pleases, IN
money that will pass current any.
a where.
Yet, it must not be assumed that
y the postal savings bank in any sense
: is intended to be competitor Of the
{. national and state banks. 1t really
a supplements their activities by bring
y ing into the ranks Of depositors
ID thousands of people who will not in
a. trust their money to any but gov
eminent savings bank. AS their de
posts eventually find their way int
J. circulation through the depositor.
~ banks, at rate of interest one-hal
d. per cent less than is paid to thei
C, regular savings depositors, there il
f. no reason to believe that the TIVE
k systems will ever clash.
al When postal savings banks wer'
ct established in Great Britain, in 1861
- through the efforts of Mr.. Gladstone
80 it was thought they would conflic
"a with other savings banks, but exper
dc ence has shown that the two system
he work together tremendously, an6
be though the number of private saving
ng banks has not grown, the deposits /
both have increased immensely.
One of the main arguments for tn
postal savings bank was that it woul
bring into circulation money hoarde
ISL in stockings, bedticks, tin cans an
in other handy places.
g., The history of private banks,
MT checkered, and among our foreign
~. born citizens there are many person
,ro who have lost the savings Of years
-. such places These are some of til
by people that the postal savings ban
'rs will benefit; will restore the con-
ty, dence they have lost and re-esta blisl
asst ed them in the habit of saving
MT. The proportion of young people
fa. the first generation of Americans nur
~, bered among the depositors indicate
the vast influence for thrift the pc
tai savings system is bound to exc
~ else on the rising generation. If, {
to people, we are lacking in any or
ess quality, it is in the matter OF eco
md omy. We are apt to be extravagan
to without there being any occasion fl
ner it, Our schools can popularize,
that Is required, the postal savint
j., bank by suggesting the use of sa
VIC ings cards and savings stamps amor
al their pupils The child that begins
'ity save early will have nothing to regr
to on this score when it is too late
ton make amends.
wn France is a good example of the /
and fluence of thrift There the savin
ain. habit is particularly strong. 1t
- ~ practically the richest nation in q
~ world, and it's capital comes from
savings system. There the habi
eti work in conjunction with the COVER
all ment and the depositor to PROVE
ice means Of safe investment in profitab
tho bonds
The With a vastly greater populate
III, than our sister republic and immens
~ ly superior natural resources, the
m ia M! saticfactnrv raooop nh, ~,