New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-09-01
POSTAL BANK A SUCCESS
DEPOSITS in First II Months Ag'
ureuated S724,432.

Tho Postal Savings Bank has been
great success In the first year OF lis eA-
jstence. So successful has 1t been that
branches have been established about the
borough at the various carrier stations
until the system is now made up OIL
twenty-five parts. each of which is thriN-
ing. The last three new branches were
opened one month ago.
To-day Is the first anniversary OF the
establishment OF the first branch, the
central branch at the Postofiice Buildlhs'
I'm Washington street. On the first DAY
1856 men. women and children opened ac-
counts and deposited together the sum or
s22J5. On Friday Postmaster z. w. Voor-
HES furnished The Tribune with the
figures OF the banks transactions for the
first eleven months of its existence. Al
the end Of this period, August |, Brooklyn
stood seventh In the list Of cities In
which the banks had been established. II
had then on deposit the sum Of sis9Jo5'
The number of depositors was 1914.
The people who have benefited by the
bank are those who can deposit Only
small amounts and who must be able 10
necessity not contemplated by the rules
laid down by the savings banks In con-
sequence of this condition, the with
drawals have been enormous I'm compari-
son with the deposits. In the eleven
months there were 1929 Withdrawals OF
sums ranging from 81 to $500 The acgre-
gate amount taken ont in the eleven
months was 1921. $50. while the entire
amount deposited in the period was 1924.
1872 In other words, the Withdrawals
amounted to about 50 I-3 per cent Of the
deposits.
No bank Of the ordinary sort could con-
duct such business at a profit, yet the
government is in a position 10 do so and
70 pay the depostors per cent interest
as well. This is because the work can
be done with few additional employees
and by the use OF space in the existing
postofflces.
The work OF the government bank en-
ployes is simplihed by certain restrc-
tons. No compound interest Is paid only
round sums may be deposited. organiza-
ton and trust funds are not accepted. and
the Interest is not retained with the
accounts, but must be- Withdrawn and
redeposited At the same time, tine
cepositors have their compensation. De-
posits begin 10 draw interest from the
first day OF the month after they are
turned In. The accounts may not be at
tached, and married women can feel that
their money is safe from the interference
OF their husbands. The simplicity Of the
system Is another important consldera-
ton.
There was much talk at first that many
people who had been afraid TO trust their
money in banks would hurry 10 take adj
vantage OF the invitation extended by
the Postal Savings Bank. but the re-
suits do not seem to bear out that ex-
pcctation. The opportunity for deposit
ing boarded wealth in the bank IS small.
Only 500 may be deposited I'm the course
of any month. and only 500 may be de-
posted within SIX months. At the end
OF each half year. january J and July ],
the d"positors who have 500 on deposit
may buy government bonds, bearing "a
per cent interest and begin new accounts.
This system allows no person 10 deposit
more than Sl,oc0 year TINS plan mas
placed depositors with treasure troves al
their disposal under a serious handicap.
II may explain why the bank had less
than half million dollars on deposit al
the close Of eleven months.
\ feature OF the system which is
worthy Of considcra ton and Is believed
10 have proved decidedly beneficial-not
so much from the financial point OF
Wow as from the educational-is the en-
couragement il has given youthful de-
posltors. Children Of ten years OF age
may become full GedGed doposltors and,
10 aid them In saving their pennies. cards
nnd stamps are sold. The cards cost
ten cents apiece. and thu stamps the
same amount. The youngster buys card
ard attaches nine stamps from time "a
time. and then turns the whole In and
receive credit for deposit of 81. This
Is considered the ideal way of saving
dimcs-it IL the one scheme FOR saving
M LstI Qap