The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-02-20
P0sTAt sYsIE N
DO0Ms BANKMG.
BUSINESS
unols Sans Dspositories Ike Big
HIT, Most Of Money Being Placed
BY People in Farm Com.
nrunities.
Local, State and National Banks Are
Qualifying TO Handle the
Funds.

WASHINGTON. Feb. 20.-Ths
United States postal savings bank Is
success from the start.
The phenomenal record made by
. the As trial repositories In the first
month OF the experiments record
OF $4,000 In deposits, twice what
was expected by the postoffice author
tiles OF the designated offices-as-
sures the rapid extension Of the postal
savings System to take In every post
Office In the United States.
The first months trial showed de-
posts averaging $1,000 for each OF
the small postoffices selected for the
experiment. In certain trial towns
the first months business was SO
large that the local banks which had
qualified as government repositories
for the postal savings funds had not
furnished sufficient securities Of the
kind required by the postoffice for
the safety Of the government de-
posifs.
The figures have not yet been an
alyzed for the public. But the first
examination OF the months business
shows the surprising fact that postal
banks established in farming COM
munities showed even greater de-
posits than those In Industrial CEN
tiers having large percentages OF for
eign born citizens.
Private savings banks apparently
have not suffered from the postal
savings system. Reports from the
towns selected for the experiment
show that In the first month the sums
deposited In the postal banks were
not taken from accounts in private
savings banks. II was all hidden
money, money taken from socks and
cracked teapots and from under the
loose board in the kitchen floor.
Az a result, local, state and ma
tional banks are now tumbling over
each other to qualify as repositories
for the savings funds. IL seems like
" that those who fought the postal
savings banks hardest are about 70
turn into its strongest adherents. The
postal bank was one popular reform
toward which the interests have
maintained a mistaken hostility, and
the banks see their mistake now.
The government redeposits the
savings funds In banks, demanding
the payment of 2M per cent inter
est. This Is cheaper than the banks
could get the money from the post
Office depositors themselves But. in
most cases the banks couldn't get at
all the money that the postal saw
ings oank gets, because that money
IL sock money and money sent 10
foreign postal banks.
Postoffice experts are now engaged
in analyzing the foreign money order
business for January In the post
Offices designated as postal savings
-depositories. 1t is expected this
analysis will show a marked decrease
In the amount OF money shipped
abroad.
The original appropriation for start
ing the postal bank was 100000.
On the strength of the January trial
The trustees hurried to congress and
asked for en- even half million dollars
to extend the bank. This sum will
undoubtedly be granted, and future
appropriations will be even larger.
Uncle Sam Is In the banking business
Cor keeps.
The executive Offices of the bank
in the postoffice department are
starting a system Of bookkeeping Ca
pable of including every postofiee
in the United States as postal bank.
This viii take time, but IL Is probable
that with the new half-million dollar
appropriation the trustees will put
the bank into a few first-class post
offices very soon.
The designation OF the As trial post
Offices OF the second-class caused
some apprehension among the friends
OF the system. These Offices were In
small towns and cities, many OF them
unknown places to the country at
large, and 1t seemed as IL II were
the intention OF those into whose
hands the management Of the new
bank had fallen to discredit the sys-
TEN by having IL make a poor show
fng at the start. Many OF the Offices
designated are in rural communities,
and IL was thought that the heaviest
patronage of q government savings
bank was sure to be in industrial CEN
tiers.
They now explain at the postof-
nee department that the offices for
the trial were selected so that the
experiment might reach all the yari-
Gus types of American life to guide
bank authorities in the extension of
the service. II was not the intention
of the trustees, they say, to have the
trial Offices make great showing.
In fact, a heavy volume OF early de-
posts was not desired. The chief
purpose Of the trial banks was to
give the Washington executives a
chance to test their bookkeeping sys-
tenn. Heavy deposits at the start
might embarrass the executive office
by engulfing the slim stan in an ex-
cess OF business.