Decorah public opinion. (Decorah, Winneshiek County [Iowa]) 1895-1928, 1912-01-31
POSTAL BANKS SUCCESS
Bankers Who Opposed Them Now
Asking For Extension.
FIFTEEN MILLION DOLLARS.
by End of Next Fiscal Year IL is
Expected That Deposits Will
Aggregate $5O,OOO,OOO.

PoUsVOVsVOVs
Even the most enthusiastic advo-
Gates of the postal savings bank did
not expect the great success the sys-
tenn has attained. In the first year
the deposits have aggregated nearly
SIS, 100000, and the money is still
coming at the rate of $1,0O0,O00 a
month.
When the postal savings bank sys-
tenn first was advocated by the gov
ernment, protests from all over the
country came from bankers. They
insisted that their deposits would be
decreased the moment the govern
ment went into the banking busi-
ness.
The post Office department replied
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 rea-
SOb "SiO poNh aiu dDOuI OpcHluS
savings accounts would flock to the
postal savings banks with their
money
Since the law requires that postal
savings deposits be, in turn, deposit
ed under bond in the banks, the
postal savings banks advocates de-
clared the result wou4I be to in
ciease the bank deposits. SO true
was this proved that the objectors
have acknowledged their mistake
and are clamoring that the limit be
taken off the monthly deposit per-
mitted and that depositors be allow
ed to deposit as much as they wish.
They have even importuned their
postmasters to use their influence
with the postmaster general to have
the present law so amended that un-
limited deposits may be made.
1t is estimated that before the end
of the second fiscal year more than
$5O,000,000 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 il
Illustrations that some of it has been
buried for years. Mildewed coins
have been sent to him by enthusias-
tic postmasters.
AT the present writing there are
nearly 5000 post Offices designated
as postal savings banks, and the
number is being added to at the rate
of 1000 a month.
Postal savings have kept pace with
the extension of the system.
Amounting at the end of the first
month TO only $60,253, in the forty
eight experiment stations, they in
creased in the half year to $679,31O,
and now after the expiration of a
year they have grown to SIS, 1000, 600.
AT first the postmaster general
had the postal savings system looked
after by the clerks in the money
order department of the post office.
When it was discovered that the de-
posits were fast approaching the mil
lion dollar week point and the
work became so heavy that the
money order clerks were unable to
handle it, a special bureau was or
ganized. Theodore l.. Weed was
made director of the postal savings
department at salary of $4,000 a
year. Mr.. Weed had been chief clerk
In the post Office department and
mas been Very active in perfecting
the savings bank department. Under
him are nearly 100 clerks.