The Mena weekly star. (Mena, Ark.) 1904-1977, 1912-02-01
POSTAL SAVINGS
BANKS MAKE GOOD
In First Year Deposits IS Millions
and 80 Millions Expected During
Second Year-Banks Are
Proilting by IL.

Washington, Jan. 2i.Even the
most enthusiastic advocates of the
postal savings bank did not expect
the great success the system has
attained. In The first year tho de-
posts have aggregated nearly Is
million dollars. and the money still
is coming in at the rate of | mill
lion dollars a month.
When the postal savings bank
system first was advocated by the
government, protests from all over
the country came from bankers.
They insisted that their deposits
would be decreased the moment
the government went into the
banking business.
The postoflice Department re-
piled to that argument with the
assertion that the contrary would
be true; that persons who were
afraid to trust the banks, or who
for any other reason were back
ward about opening savings ac-
counts would flock to postal saw
ings banks with their money.
Deposits Go Into City Banks.
Since the law requires that pos
tal savings deposits be, in turn,
deposited under bond in the banks,
the postal savings banks advocates
declared the result would be to in
crease the bank deposits. SO true
has this proved that the DIRECTORS
have acknowledged their mistake
and are cIamoring that the limit be
taken off the monthly deposit per-
mitted, and that depositors be al
lowed to deposit as much as they
wish. They have even importuned
their postmasters to use their in
fluence with the postmaster gen.
eral to have the present law so
amended so that unlimited de-
posts may be made.
Expect 50 Millions Next Year.
1t is estimated that before the
end of the second fiscal year more
than so million dollars will be on
deposit with the government.
Where does this money come
from? Not from the well-to-do or
the rich. Their money is working
in investments. 1t is the opinion
of the postmaster general that the
great bulk of it-he has no means
to tell the exact percentage
comes from hiding places. He has
had many illustrations that some
of it has been buried for yeers.
widowed coins have been sent him
by enthusiastic postmasters.
At the present writing there are
NEARLY six thousand postoflices
designated as postal savings banks,
and the number is being added to
at the rate of one thousand a
month.
Postal savings banks have kept
pace with the extension of the sys-
tenn. Amounting at the end of the
first month to only S60253, in the
forty-eight experiment stations
they increased in the half year to
S679,3i0 and now, after the expira-
ton Of year they have grown to
1913 million dollars.
Special Bureau to Handle II.
AT first the postmaster general
had the postal saving system look
ed after by the clerks in the money
order department of the post
Office. When it was discovered
that the deposits were fast APP
lproaching the million dollar a
week point and the work became
so heavy that the money order
clerks were unable to handle it, a
| special bureau was organized
Theodore l.. Weed was made di-
rector of the postal savings depart
ment at a salary of $1,000 a year,
Mr.. Weed has been chief clerk in
the Postofiice Department and
has been very active in perfecting
the savings bank department.
Under him are nearly one hundred
clerks.