The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-01-20
POSTAL SAVINGS DEPOSITS.

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Tho success Of the postal savings
banks is assumed to he assured by the
statement that upwards of $li 100000
are now deposited in that branch OF
the postal service of This country. And
yet we read every once IN Il while
burglary, or otherwise. considerable
sums Of mopcv boarded and not de,
posted in any bank. not even the pos.
tai savings bank, 1t seems astonish-
ing that people should hoarl away
money and not put il i'm where it viii
be safe. and do them some good. Mud
vet IL must be that the postal savings
banks have drawn out much of this
boarded money; because it appears that
the usual savings banks are not mate
rally affected by the deposits with the
postoficc New York State, for in
stance, reports an increase Of more
than S67 900, 600 In the deposits in its
savings buuks for the year 1911, this
being more than four times as much as
the total deposits. all told, in the pos
tai savings banks.
The workings Of the postal savings
banks. however, have brought in some
foresecn arc likely 10 arise. One of
these was the unexpected drop in the
bonds issued on postal savings account,
TO % cents on the dollar In the New
York financial markets Reinsurance
was quickly had however. that the
government would protect all Of its
depositors so that they would not lose
tins eight per cent. which would
amount, if the depositors had to bear
it. to fully four years interest on
their deposit account; but, not so much
of course, on the bond account, because
the bonds draw l2 per cent interest
while the deposits draw but two per
cent.
The question is vet to be determined
bow much the Federal Government will
allow itself to be put into bonded debt
by this savings bank account, AMI what
1T can do with the postal savings when
likely to do, Judging by the returns re.
ceivcd. The Government. in accepting
these deposits, puts itself in debt to
the dcpositors, and whether on deposit
account at two per cent or on bonde |
account at IL per cent, (the dcpos-
itors being allowed under the law to
call for bonds at their plcasure,) the
Government will be constantly going
more and moro into debt, not at its
own option, nor because it needs TO bor-
row. but at the option of individual de-
positors. When this debt becomes for
midabe. what is 10 be done with the
money. and how will the guarantee TO
depos,tors be fulfilled, especially if, af
ter while. the Government wants to
reduce its debt rather than TO increase
it7 1t would seem as though a gov
ernmcnt might profitably (to itsclO get
out Of debt at some time or other; but,
according 10 this postal savings bank
programme. the Government Will never
be able to get out of debt at all; and 8,
in fact. no matter how hard it may
struggle to reduce its interest account,
If must continue paying the interest
that it has agreed to pay, and must
allow its debt. bonded or otherwise, to
grow heavier and heavier. whether il
is to the public welfare 10 do this
or not.
The postal savings banks arc so far
simply an experiment, We shall all
know better later on how they work.
But, in the meantime, it is clearly the
duty Of every one TO induce all who
have money to deposit it in the banks,
in the postal savings banks if they
arc d,strustful Of other banks. and TO
use every possible influence TO main
tain the rights Of Icpositors against
any shrinkage of value of bonds or any
other form of guarantee which the
United States may make TO those who
cntrust TO it their savings and ac.
counts