Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-01-03
POSTAL BANKS OPEN
One in Each State and Terri
tory Began Business Today.
Intended AS EXPERIMENT
Not Enough Money to Put System
Into Full Operation.
PLACE FOR H0ARDED MONEY
Guarantee Of Government Expected
to Prove Attractive to Those
Who Fear Ordinary Banks.
PLACE FOR boarded MONEY

Forty-eight post offices Of the second
class today threw open their doors to
those who wish to deposit their savings
in the new postal savings banks
No more than one Office in each state
and territory has been authorized to con-
duct the initial ceremony Of installing
the new system. This. 1t is explained, is
because the appropriation made by Con-
gress is far too small to begin the sys-
tenn at larger number of onces, and
also because 1t is desired, before there is
general Introduction of the new banks,
to try them out at picked Offices where
experience will reveal any defects that
may exist and permit Of their speedy
correction.
The cities like Washington. Baltimore.
Philadelphia, New York, Boston, Chi
cago, st. Louis and others Of their size
and importance will not have the new
banks until after Congress has made pro-
vision for their establishment by appro-
priating the necessary money.
Test Of the Regulations.
The Offices chosen are those which have
an unusually good record as post Of
fees, it is explained and it Is believed
they will give the new system and the
regulations made for its conduct fair
and thorough trial. Their experience will
determine whether or not amendments
are to be made in the regulations al
ready adopted.
The system as introduced at these Of
fees, it is declared, differs In many par
ticulars from the systems that are in
operation In other countries. Those sys-
best there is Of them has been adopted
and improvements made where it was
thought improvements were possible.
Keep Money in Circulation.
For years past successive Postmasters
General and men prominent In and out
of government Office have warmly advo-
Gated a postal savings system as neces-
sary to reach the alien and poorer classes
who do not seem to be attracted by ma
tional or state banks.
Many Aliens especially those of Italian
origin, either place their savings in the
hands of one of their countrymen in the
United States for safekeeping. or send
them abroad. In either event the money
is withdrawn from circulation. and that
is hurtful in times of stringency or panic.
Then. 1T Is declared, there are many
thousands of citizens of the less prosper
GUS class who will be attracted by the
banks whose security is solemnly pledged
by the government of the United States.
thus making them proof against loss by
insolvency.
Depositors will be paid per cent in
terest. Deposits made after the first day
of the month will not begin to draw in
terest until the first of the following
month. and those withdrawn will bear
interest only up to the first day Of the
month nearest to the time of withdrawal.
Cards for Small Depositors.
Those who have less than a dollar to
deposit cannot open an account. but they
can purchase a deposit card and ten-cent
stamps to attach to it until nine stamps
have been attached. when the card and
stamps will be received as a dollar de-
post, for which a non-negotiable certifi-
cate will be issued.
Holders of sufficient certificates may
convert them into interest-bearing gov
eminent bonds at par IL they desire when
the certificates amount to SO. The bonds
are issued in multiples Of that sum. just
as the certificates are issued in multiples
of dollar.
The new system affords poorer people
the opportunity to save money at interest
without the fear of its loss by bank fail
ure. 1t is believed 1t will encourage thrift
among the poorer classes and increase
the habit Of saving.