Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-27
HIGHER INTEREST
ON, N,SAV|NGS URGED
Financier Advocates ". s.
Postal Department Paying 4
p. c. on All Deposits
WOULD EXTEND SYSTEM
BY the Associated Press

New York, Aug. 2T.-Extension of
the postal savings system at an attrac-
tive rate of interest by the government
to furnish banking facilities to the
great body of common people, was
urged here today as q financial recon-
struction "measurc by Eugene Meyer,
Jr., former managing director of the
war finance corporation.
Appearing before the Senate special
committee on reconstruction and pro-
duction, the fnancier argued for amend
ment to existing legislation so as to au ,
thorize payment of n per cent rate of
interest on postal savings deposits in
stead of the 2 per cent as ut present.
he also advocated increasing the num-
Der of postoffices authorized to receive
deposits from $500 to all of the % 900
postofhces, branches and substations.
Proper organization and administra-
tion by ggovcrnmcnt, Mr.. Meyer said.
could gait savings deposits within a
year sufficient to pay off the floating in
debtedncss of the United States Govern
ment. He also expressed the opinion
that with proper handling deposits could
be increased to such an extent as to
cover in addition II large part, il not
all, of the Victory loan, amounting to
more than $1,000 900, maturing in
1923.
Taking up of treasury certificates by
postal savings. he added, would relieve
the banks of the burden the government
since, and permit the banks to use all
Of their available funds for business
and industrial purposes 1t would also
relieve the Federal Reserve system of
the rediscOunting of several hundred
millions of certificates which would i'm
prove, the reserve position of the Fed
cral Reserve banks. The redemption of
certificates would Furthermore bring
about, he said, a rise in Liberty Bonds
Of from , to 10 per cent and relieve the
banks of hundreds of millions of loans
now being carried upon Liberty Bonds.
Another result expected by Mr.. Meyer
from the extension of the facilities of
the postal savings system at an attrac-
tive rate of. interest was that it would
bring forth from hoardcrs minimum
of $3.50, ,000, 900 in coin and currency"
which would be restored to circulation.
Raising 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
cat schemes" \ low estimate of this
would be $500, 200, 900 per annum, he
said.
Another estimate made by Mr.. Meyer
was the saving of $500, ,000. 900 tO
$500, 600, 600 year as the result of the
inculcation of the spirit of thrift AZ
against expenditures now being made.
To sum up, the actual direct savings
to the government and people of the
country, Mr.. Meyer asserted that ST.
000, zoo, 900 year would be u con
servative estimate.
Mr.. Meyer asked the committee to
consider his proposal favorably and il
they did he recommended a series of
hearings on the subject from all par
ties interested, including the officials OF
the Postottice Department. the treasury
the Federal Reserve Board, savings
banks, bankers, financicrs and ccono-
mists in general. representatives of in :
dustrial labor and farm organizations.