The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1912-10-06

Iopc, or jacket. as a matter of record.
The transaction ends when the certificate
Is paid.
How to Save 1O-cent Pieces,
Also. for children and other small saw
ers. We have cards and stamps. A card
costs 10 cents. Nine stamps. bought at
a post-office for 10 cents apiece, are past
ed on the card, which then has a value of
81 and Is exchangeable for a regular en-
graved certificate for that amount. Per-
sons applying for certificates give us
their signatures. and IL they are I'M
known. certain facts about themselves.
"A Hindoo in Los Angeles lost a $40 GER
tificate by theft. When II was presented
at Seattle for payment. the thief was
promptly put under arrest Certificates
ATE payable only at the ONCE where is
sued. Our system Is so simple and mex
pensive that foreign governments have
taken much interest In Its details and
management. Now that 1t is in success
full operation. I will confess that II gave
me some uneasiness at first. / didn't
want it said that We had rejected the
experience and methods of Europe only
to meet with disaster.
"Organically, too, our system Is unlike
all others. Deposits in Europe are for
warded to central ofiices. Here they are
kept at home. Money left with the post
master of st. Louis remains in st. Louis
and is not sent away. All cities and vii
lagos keep their own postal deposits,
which are turned over to the local banks
ana become a part of the money supply
of the various communities. State and
national banks can qualify as repositories
for postal savings funds by applying to
thu Postmaster General. Secretary of the
Urea sury, and Attorney General In Wash
ington. and by giving the required secur-
ity in the form of government. State. or
city bonds. on such bonds. in short, as are
supported by the taxing power of the
people. We pay depositors : per cent in
.ercst for their money. The banks pay
US q. per cent. The half per cent profit
Is used In meeting a part of the cost of
the system. Banks especially those in
the West. are anxious to get the money
because they can loan II t. their custom
ers at from per cent to Z per cent. More
over, as 1 have remarked. the money is
not sent away. but remains at home.
Out Comes Hidden Money.
so the bankers have become friends
of the system and some of them think
the limit of deposits should be raised
from $500 to $1,000 They know there are
inexperienced persons who doubt the alb
solute safety of banks and who keep all
the surplus money they have on their
persons or In their houses. The postal
savings system draws such. money back
into circulation. and the banks get II in
the manner I have mentioned.
Again, gCing to a bank is a serious and
bothersome ceremony to a good many
persons. They feel like putting on their
best clothes and often must loss time
from their work. Post-ofiices. on the other
hand. are open early and late. and are
free and easy in the matter of dress. A
man with machine oil on his hands and
face does not hesitate to stop at the post
Office on his way home. Furthermore, a
post-offi. e belongs to the government at
Washington. Its atmosphere is official
and reliable. Back Of 1t is the whole ma
ticn.
Thus foreigners. accustomed to postal
banks in Europe, workingmen who stand
in more or less awe of bank methods. and
farmers who are little doubtful about
personally owned institutions, freely give
us their money, although we do not ad-
vertise in the newspapers or send out So
licitors. I am sure our deposits will reach
sloo, 900 within a few years England
has $500. 10000 of the money Of the pub
lie. We should have billion in course
Of time.
by and -by-when we can total $780,
100000. l should say-the system will re-
turn profit over expenses. We may be
justified, then. in raising the interest rate
a fraction. The object of the system.
however. is not to make money for the
government. but to give the people an alb
soluteiy safe depository for their savings
and thereby Indirectly promote thrift and
a larger feeling Of personal interest in
ones country. Savings inevitably lead
to postal bonds. and bonds help toward
serious ano intelligent citizenship"
Copyright. 49,. b James B. Motrovl