El Paso herald. (El Paso, Tex.) 1901-1931, 1911-07-15

mated thaC 1t VIII save at least 81, OOQ,
1000 year TO the government. 1t vii
certainly do away with the possibl
employment of 1000 bookkeepers, which
even at as low salary as $1,000 a year
would make an annual draft on tn
treasury of $4,000, GOO, and that in ad
dition to other machinery which woul,
greatly add to the total. Mr.. Hitchcocl
conceived the idea during his trip Il
Europe last summer. He there saw tn
complicated machinery of other nations
the most of it based on the system de
vised by Gladstone, which has beer
adopted by 40 other countries. Thi:
was the use of the passbook, which il
England meant the posting of the de
posit books of $4,000 offices. and o.
keeping sets of books for them. It in.
volveG the employment of 1000 clerks in
London, and of a great bookkeeping es
tablishment there. In our own country
the offices would surely be three times
as many as in Great Britain, and they
will probably be $4,000 or 10000 OF
more. To handle them on the European
system was evidently very expensive
and Mr.. Hitchcock, in working over the
matter, originated a plan whereby the
accounts would to a great extent keep
themselves, and that without mistake
Certificates VS.. Bank Books.
This plan was the wipIng out of the
passbook, and the issuance of drafts or
certificates of deposit. This has been
installed, and it is the present system.
The depositor hands in his money, but
In place of having a credit made on a
bank book he is given a certificate of
deposit for the amount he puts in.
The certificates are in the denomina-
tions of 81, 81, S., SO, $40, $50 and
500, and they bear interest at the rate
OF percent per annum. Thew are
neither transferable nor negotiable. and
are not worth anything except in the
hands of the person buying them They
are issued in duplicate, and the original
and duplicate must each bear the sigma
ture of the deposition. The duplicate is
retained by the postmaster, and if the
man would withdraw his deposit he
must bring back the original, and sign
his name IN the presence Of the postmas-
ter. who compares it with the signature
on the duplicate. It is after lust the
same method that the travellers checks
issued by banks and express companies
are cashed all over the world TODAY, and
the same as that used in letters of
credit One might forge another mans
signature, but it takes great skill to
make such forgery offhand in the
presence of the man You are trying to
defraud.
If certificate of deposit should be
lost or destroyed it can be duplicated by
applying to the postmaster, the sigma
ture, made in this way, being evidence of
the claim. The postmaster keeps a
record of these duplicates, not in book.
but in set of manila Jackets or en-
velopes after the card index system.
each manila Jacket bearing the name
or depositor and having in it that de-
positor's duplicate. 1t is as simple as
rolling off log.
Again the need of bookkeeping is
avoided by the fact that deposits are
made only in multiples of one dollar:
and that the money has to be left in one
year to draw interest, the interest be-
ginning only on the first day of the
month. The depositor knows that if he
takes out any money in less than wear
he loses his interest. IF he leaves it in
fer one year he gets 2 percent; and he
must leave 1t in two years to get 4 per-
cent. In other words, there are no frac-
lions to be considered. The system seems
to be foolproof. The depositor knows
Just what is coming to him. He can
draw as much or as little as he pleases,
provided the denominations are right:
and when his money is all drawn the
tearing up of the manila jacket closes
the account and wipes his name from
the government rolls. In fact, there is
no other record.
Not Intended for Millionaires.
These banks are not intended for mil
honaires. In fact, the most that anv
one can have on deposit at any one time
IS $500: and it is not possible to deposit
more than 800 in any one month. When
the first As banks were opened many
farmers came in with sums ranging from
$1,000 to $4,000, and were surprised
when they were told that only 500
could be taken per month. One old wo-
man called at the postoffice department
here in Washington. She had a big fat
pocketbook with her which contained the
savings of years. She said that she had
lost her money in private bank failure
20 years ago and that since that time
she had been praying for a government
bank where her funds would be safe.
At one of the other stations two
farmers brought in two canvas bags of
,oins which together held more than
$1,000, and asked TO deposit it; while at
Dubois, Pa, a German miner Offered
$500 and was surprised when the post
Master would accept only S100 At Ash
'abnla, Ohio, one lady deposited 800. |
md said she would return monthly un- |
ii her account had reached the limit; |
while at the same office a man who was
'efused the chance to put in $500 at |
/ lump said he did not care to open |
IN account where the money went in on |
Iuch small installments.
Chance for Women and Children.
These banks viii be patronized by the
women and children. The laws provide
hat a husband has no control of the
deposits made by his wife, nor guar +
lians any control over those made by
heir wards. Even. the children can I
deposit, and their parents cannot get
he money except by their consent and /
" their signatures in the presence of |
he postmaster. Any boy who has
lime may begin an account by buying |
! postal savings card. upon which he |
an paste nine other 10-cent postal saw
ngs stamps, which he NAV buy as he |
sets the money. When the 90 cents
worth of stamps have been stuck on |
he card, it represents a dollar, and may
'e exchanged for a dollar deposit draft |
Il the Dostoffice His mama +ba1 r,ooo