Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-06-21

SfiiNfIoN, ID. g., June 2O.--lt Is
Just month since the bill providing
Tor certain fundamental changes IN the
postal savings act was made into law.
Already results show that the scope of
usefulness OF the post-office as saw
ings bank will be greatly extended
The time elapsed since the passage
OF the new act is so short that any
bat big changes would pass unnoticed.
The bill was approved on the 18th OF
May, and information about the new
rules spread slowly among the 500. 900
depositors. most OF them foreign born.
who bank with the local post-oiTiccs in
every corner Of the land. Al the other
end of this one month period. must be
deducted the time IL takes for reports
10 come in and be tabulated: so that
the results shown have been accom-
Dlished in period OF nearer two weeks
than four.
Tho gains In deposits have been re-
markahle The new bill as stated was
approved on the 18th Of May. II took
at least week for news OF the change
TO reach the class OF people who make
up the postal savings depositors. Yet
in the month OF May deposits In the
Pittsburgh Office showed an increase
OF $4,000 az compared to an increase
OF only 5000 IN May, 1915. In Clevc-
land the gain was $4,000. compared TO
$4,000 for the previous May. In Buff
falo il was $4,000. against IS, GOO for
May. 1915; 81. Louis showed gain OF
$4,000. as compared 10 loss OF $1,000
for the same month year ago. Such
figures arc coming in from all sides.
and the new regime was only in effect
and generally known for about week
in MAY.
IL is no wonder that some OF the
more sanEuine prophets look for tho
mn \.
banks to he doubled in the near future.
Whether or not the expansion will
reach such a figure as that. there is
little room for doubt that IL will he
large one. The sudden gains are
universally ascr!bsd to the changes
made in the law.
These changes are both simple and
fundamental. Under the old law. no
Individual depositor could have more
than $500 standing 30 his credit ut any
one time. and no single deposit could
he made for an amount exceeding 800
Under the new plan, tho limit of the
individual depostor's account is raised
TO $1,000, and the restriction upon the
amount TO be deposited at one time is
entirely done away with. He may de-
posit il all AT one time IL he likes.
These changes. these removals OF re-
strictFons. have been made after a care
to a demand coming from all parts OF
the country. The files of the central
ONCE of the system arc full Of letters
from postmasters telling Of the oh
stacles that the low limits place in the
path of expansion.
typical report came from post
master in Milwaukee. He came down
Informed that man and wife had tried
to deposit 5000. When told that they
could only deposit 500 at n time and
not over $500 altogether. they took
the whole sum away. Later man
showed up with 5000. but when he
found that it would take him three
months to get 1t into the bank, he
took il all away with him again. \
farmer came in next, with $3.50. but
declined TO deposit anything under the
conditions that were necessary. Fin
ally appeared broadminded individ-
ual with 5000, who, when he found that
only 500 could he accepted. philoso-
phically opened his account for that
amount and took the other 500 home
again. SO In one day. five people Of
fered one Office 1880. OF which 800
was accepted
The real significance of this state of
affairs cannot be understood without
an understanding OF the class of peo-
pie who make up the postal savings
depositors. The natural question to
ask about man who cannot deposit
$500 in a post-oifice is why he docs
not deposit 1t in II bank. Every Amer
lean city has plenty of banking facili-
ties, absolutely safe and solid. The
restrictions on the postal savings law
we're manfestly put there to prevent
the system from encroaching on the
field of private enterprise.
But the typical postal savings de-
positor does not see the case that way
He Is suspicious Of anything that does
not hear a government seal. and soon
or than trust his money to n private
bank, he will bury 1t in n tomato ca n.
There are persons of almost every class
included In the 100000 postal savings
depositors, OF course; but ~ per cent
OF the deposits stand to the credit Of
the foreisn-born. The greater part OF
the depositors arc day laborers. All
these foreigners are accustomed to the
postal savings system from their Eu-