Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-27
|SAYS GOVERNMENT
SHOULD Be BANKER
FOR GREAT MASSES
Financier Would Extend Pos.
tai Saving System and
Raise Interest.
BY the Associated Press.

by the Associated Press.
NEW YORK. August 21-ENtens'ou
of the postal savings system at an at
tractive rate of interest by the gov
eminent to furnish banking facilitic:,
to the great body of common pcopl."
was urged here today as a financial
reconstruction measure by Eugene
Meyer, jr.. former managing director
of the War Finance Corporation.
Appearing al the invitation of Scna-
tor William y. Calder of New York
before the Senate special committee
on reconstruction and production. the
hnancier argued for an amendment to
existing Legislation so as to author
lie payment of per cent rate Of
interest, on postal savings deposits in
stead Of the per cent as at present
He also advocated Increasing the
number of post offices authorized to
receive deposits from $500 to all of
the $4,000 post Offices. branches and
substations
Proper organization and administra-
ton by the government. Mr. Meyer
said, could gain savings deposits
within d year sufficient to pay off the
floating indebtedness of the United
States government. He also expressed
the opinion that with proper handin.
deposits could be increased to such
an extent as to cover in addition
large part. If not all. of the victory
loan. amounting to more than $4,000, =
100000, maturing in 1923.
Would Relieve Banks.
Taking up of Treasury certificates
by postal savings, he added. would
relieve the banks of the burden the
government imposed on them during
the war and since. and permit them to
use all of their available funds for
business and industrial purposes. IL
would also relieve the federal reserve
system of the rediscounting of several
hundred millions of certificates. which
would improve the reserve position of
the federal reserve banks. The re-
demption of certificates would fur
thermore bring about. he said. rise
in liberty bonds of from ) per cent TO
10 per cent and relieve the banks of
hundreds of millions of loans now be
ing carried upon liberty bonds.
Another result expected by Mr.. Mey
err from the extension of the facili-
ties of the postal savings system at
an attractive rate of interest was
that it would bring forth from hoard
ers minimum of $3.50 100000 in coin
and currency which would be re-
stored to circulation.
Raising of the rate of interest. Mr.
Meyer explained. would also mean the
saving OF large amounts of money now
going from Ignorant people into the
hands of swindling promoters of Wild
would be 100000 600 per annum. he
said.
Plan Encourages Thrift.
Another estimate made by Mr.. Mey-
er was the saving of $500. 000. 900 to
$500 100000 year as the result of
the incubation of the spirit of thrift
as against extraVagant expenditures
now being made. He based his esti-
mate on the Treasury tax collections
a minimum expenditure in the country
of SS,O00.000, 600 for Injuries.
To sum up the actual direct savings
to the government and people of the
country. Mr.. Meyer asserted that 81.
C00.000.0OO a year would be con.
sGrvitive estimate. But in addition Ia
the tangible cash values. Mr.. Meyer
added that the intangible values had
to be taken into consideration.
Every man. woman and child, for
eisn and native" he added. has con
tact with the government through the
| pest Office at home and in business
and If he becomes a depositor, with
! his government as his banker, he is
! bound to take greater interest in
his government and its affairs. would
| be more patriotic and d better Ameri
can"
Mr.. Meyer asked the committee to
consider his proposal favorably. and
! if they did, he recommended series
| of hearings on the subject from all
parties interested, including the Of
| ficials of the Post Office Department.
| the Treasury. the Federal Reserve
Board. savings banks, bankers, finan-
Gers and economists in general, rep
/; resentatives of industrial. labor and
farm organizations.