New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-05-24

foreigners tender larger amounts than can be accepted
they usually refuse to open accounts at all. In IN
stances of rejection they frequently go to the money
order windows and purchase foreign moneyorderS
Aside from the disadvantage OF having these funds with
drawn from business there IS more serious phase OF
the matter,-thc resentment aroused IN the MINDS OF
these friendly foreigners and the diSheartening effects
that their fanced grievances have on their associates
Confused thought and consequent lack of confidence
generally prevail among those who are mostly in need oil
the service There have been nnumerabe cases where
deposors would not be protected at all because they
could not be protected completely
am greatly pleased, therefore, by the action of the
House committee in charge of the postoitce appropa-
ton bill in recommending the elimination OF the present
restrictions and thereby permitting the postal savings
system TO accept any amount rendered by depoSitor;
although interest will not be allowed on deposits stand
ing to the credit of any person IN excess oil slooo
This restriction will serve the double purpose OF accom-
modating deposors who are seeking absolute safety
regardless of what their savings may earn and at the
same time will discourage the transfer OF ntcrcsbear
ing accounts from private banks to the postal savings
system.
wish it understood that the Postofice Department
has from the very beginning discouraged any move
ment that might awaken any just opposition on the
part Of the banks The apprehension at the outset that
the Postal Savings System would draw large sums OF
money from the channels of trade has been shown to be
are not only no longer hostile but quite friendly. This
was conCuSivclv shown at the last annual convention
of the American Bankers Association in Boston, when
X. c. Stephenson, president of the Savings Bank
Section, said in his address that bankers gratiied
to know that the system had not inerfered with the
banking interests adding that there had been
plant anywhere tending show that any considerable
amount OF money had been deposited with the govern
ment that would have gone into the banks had the sys
TEN not been in operation.
An interesting sidclght appears in the fact that the
postal savings system is a strong factor in quoting
financial disturbances Every bank failure in recent
months has been followed by heavy increasesbearng
the limitations in mnd-in deposits at postal savings
stations in adjacent neighborhoods Under the statute,
postal savings funds must be deposited in qualified
banks in the locality where they originate, and any
solvent bank under national State supervision may
qualify as a depository by furnishing the required Sc
curity and receive It's proportion OF funds So the
panic-sricken dcpositor who withdraws his savings
from a bank and deposits them with the postmaster
does not deny the business public the use of his
money when is needed most for II Is turned over at
once TO local banks-frequcntv the very bank from
which it was hastily and maybe unnecessarily with
drawn. An alarmed public cannot be prevented from
making Withdrawals, and the more latitude the
postal savings system has in accepting deposits. the
more effective service it can render in ayertng inan-
cial stringencics
There is today about Si0OOO0OO in circulation in the
United States practically every dollar OF which would
have been concealed sent abroad but for the postal
savings system Statistics show that postal deposits