Omaha daily bee., 1915-10-13
Postal Savings and War
postsnastar asn. aurIsson On Harpsr,s.

- Postmaster Ger. BurIsson in Hsrpsr's. "
substantially all deposits In tho postal savings
system represent tho savings % wase-esrners who
will patronize private Institutions. but who have
confidence In the government This IN particularly
true Of forelgn-born patrons Of the postal banks who
constitute three-fifths OF the deposors and who own
u per cent OF the deposits.
Many Thousands Of the foresn-oorn residents Of
the United states were accustomed to remit theft
savings for safe-kecpinE to the countries whence
they came. until the European war put an abrupt
end to this practice. On large scale. the war H.
verted these accommodations 20 the American postal
banks An exceedingly large sum. therefore. which
otherwise would have gone abroad. was kept in this
country and released through the postal banks at
most critical time TO tho OF American COM
mercc aud industry. The European has given
new and convincing evidence OF the economic valuo
OF the postal savngG system. During August isl',
the first month OF the war. the net gain OF postal
savings exceeded 100000 During the fiscal yea
ended June 20, last, tho average monthly Increase
OF deposits 81 postal banks t.SO0,Oto The total
increase OF deposits for the year F222lAB7.
Today there are about $4,000 6epositors with n1oie
than fss0o 200 their credit Since the war began
10000 people have been added TO tho lists Of de.
positors. Every state made substantial gain during
the last fiscal year except North Dakota, which fell
bohind slightly The six states recording tho largest
Increases OF deposits and the amounts gained by each
follow:
New York ....,.....,....... 49,. sl2 Ou 5ss
Illinois 1854
PennsyYana liiSgI9
New Jersey .............................. saTs
Michigan o. 75775l
The unprecedented increase is directly due to Pc
culiar conditions caused by the
After other agencies failed. postal banks have
succeeded in overcoming the tendency OF the Inn
migrant either 10 hide his savings send them
abroad II Is conservatvely estimated that at least
half OF the total sum now deposit In the postal
banks would have gone 70 Europe but for the fac-
ties now afforded by the government Here then
is ss4OO cash made available to the business world
g4l.u -.sf9a hoFa
passed into foreign hands and foreign enterprises OF
the remaining ts4.coOo. practically all would have
lain Idle in dark and musty hiding places.
The allegiance Of the immigrant follows his bank
account; and now. in round numbers. 10000 Of them
some naturaiixed. not naturalzed-hsve put
their hard-won surplus OF earnings, money obtained
for the most part by hard labor In the keeping ~
the American government They have become stock
holders in an American institution. just long
the foreign element sends It's surplus abroad, just
long do its members plan TO return to the various
lands of their birth soon they have laid by a
competence. II already citizen of the United
States, the foreign-born resident who enters the
postal savings system will gain and deeper
of close relationship with the land Of his adop
ton. and hence become better citizen. II not yet
q citizen. he will feel that the United states
theless Is his protector and friend hence he will
tho more disposed to think OF this country his
country. and take out first papers
Successful az Il is the postal savings system still
falls short Of comforting upon the public its fun
POSSIBLE benefit. An old man recently called the
postmaster OF Genesee, Idaho 10 the postal
window OF that office and pulling large baking
powder can from one OF his coat pockets. he asked
to make deposit IN the Genesee postal bank. The
postmaster noticed that the felt heavy. but had
idea that Il contained large OF money. After
counting, he found the contents amounted TO 81 40
IN gold and silver coin. The postmaster was com.
PEELED 10 advise this would-be deposition could
accept only 500 for deposit during calendar month.
Thus IN order 10 transfer the q, 300 that the bak-
ing powder into the custody Of the United States
government and then into American trade and In
dustry, II necessary that the deposit at the
rate Of 500 month until he had $500 to his credit
that he then put 500 into posal-savings bonds;
and that he then repeat the until the 81 20l
absorbed.
The recent precautionary limitations OF Law wero
adopted because the service new 10 this coun'
ever Il 10 clear that the interest OF the public win be-
the department now recommends that the naxlmun
balance which may be accepted be placed at t2.OO;
limiting Understanding accounts to u.O0. I thnk
II conservative TO say that at least @a0o00 in cur
rency IL now withheld from circulation because 'ta
holders owing to the restrictive regulations have
been unable to take fun advantage OF the postal
savings system
One OF the gratifying results of four years ex-
perience in postal banking lies In the fact that the
apprehension at the outset that the system
would draw large sums from business has been
completely diaspated Those who at one time feared
the system longer hostile, but the contrpry
arc friendly