Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-06-21
CHANGES IN POSTAL SAVINGS
One of the Days Best Cartoons.
BY FREDERIC J. nAskIS

ropcan homes. They are not going to
put their money in any bank not back
ed by tho government. even though
theE are dcpositing $40 and the
bank In question has capital and
surplus of s50oo0,O00
These facts were we'll known. and
largely responsible for the establish
'nent OF our postal savings system, In
the hrst place. But when the new
law came up for consideration a tew
weeks ago, II was stated that $4,000
dcpositors had reached the $500 limit.
hiu the situation with respect 10 them
was therefore just as bad as il had
been in the tirst place. Actual enpe-
r!ence proved too. that the limiting Of
the individual deposit TO 500 was poor
policy. because TOR some reason ar
other the immigrant has the habit OF
hohrding his savings until they make
considerable total before he offers
'hem Tor deposit. Thus he would store
away MS fingered dollar bills until
he had S20o or $3.50. When he offered
TINS 10 the teller, he was told that
only 500 could be taken each month.
MOI infreluenty this resulted in tho
"ould-he patrons taking himself and
all his money away In IA rage
Tho depositors as class are su.-
picious. They have worked hard for
their money. and they arc not going "a
TAKE any chances on losing it ANY.
thing about the system which they do
not understand arouses their uneasI
Mss ana dislike. and the restrictions
!uSt done away with belonged to the
Things they could not understand This
uneasncss often has somewhat lud;c
rous results. There are cases on rec.
ora where depositors became suddenly
frightened about the safety OF thar
s1Eihes ana drew them out just to see
ro, ,ney .on!d really get them. only to
r""eposit them soon afterwards
The real purposo
ihss system is not only to furnish the
'iinld with depository backed nv
me solemn faith OF the United States
or America. but also 10 act as n Kind
Oh connecting link between tho local
savings bank and these inaccessihIo
iittle boards of gold and bills. All ths
money deposited with the postal banks
is redeposited with the local bank,
heloFe November 1914 such deposit.
were made with any institution OF
Sp.iu condition but since that GATE
me deposits have been confined to
banks which are members OF m. Fe6.
cral reserve
In this way the nostal s.y,,se
banks perform an important servic.
10 ,he country at large. The habit
urn, Is an excellent one. but In
ordri mat nation may enjoy its
Dement'S II Is necessary that the money
saved should he kept in circulation and
not tucked away In an old stockinp
ne postal hanks are continually bring
i:iS savings of this sort TO light and
the enactment of legislation which
enabIcS them 10 deal more smoothly
Win the people who make the great
est part Of their depositors has been
received without hostility, even by the
iocai savings banks. y committee Of
bankers who investigated the pro-
posed changes before they were made
reported that they were apparently NOT
nhr"asonaole, and would work no
hardship on the savings banks. The
same committee considered objections
mat were made to- the exploiting of
the Dement'S of the postal banks. hut
.hcH decided that any possible harm
done TO their interests was more than
outweished by the stimulus to the
thrift habit given by the movement
The general opinion on both sides is
that thc private savings bank and tht
postai bank are supplementary rather
than competitive and they are work
ing am!c2hly on that basis
II Is almost six years to the dav
since the postal savings system was
authorized At the end Of the first
year the deposits were less than 81
100000. Now they are ss5.oo0. 900 The
dcpositors at the end Of the fiscal wear
1911 were less than 10000: now they
number 100000. Postal savings facili-
ties are available at $500 post-oficcs
The policy Of the department Is not
to provide a postal bank until there
is an active demand for one.
The war has doubtless been great
stimulus to the growth OF the svs-
TEN. for 1914 showed a big Increase
over the previous year.