The Wolf Point herald. (Wolf Point, Mont.) 1913-1940, 1921-08-04
DEMANDS POSTAL
SAVINGS REFORM

1t is very certain that the Posta
Savings System must be reformed
With a treatment of depositors tina
has amount almost to fraud, with tn
number of offices receiving deposit
reduced from 1898 in 1912 to 6,
314 in 1920, and with no real effort
to secure deposits, the Postal Saving
nevertheless has practically twice a
many depositors as any other saving
bank in the country and pays les
than half as much interest on depos
its. Over seventy per cent of Pos
tai Savings depositors are foreign
born or of foreign extraction, many
trusting no one but the govermenr
of the United States. In all foreign
countries the number of depositors il
savings and other banks is in direct
proportion to the attention given Pos
tai Savings and the number of Pos
tai Savings depositors.
With $161, 000, 900 on deposit last
year from 508,000 depositors, and
with the law providing that 2% in
terest be paid, the Government be-
cause of the system paid less than
liz 90 interest to these ~depositors
and by redepositing at 2h made
a net profit, over all interest pay
ments and expenses of S1,720,000.
This was sheer ~profiteering. This
money belonged to the depositors.
The certificates issued unequivocally
pledge go interest and fail to say
anything whatever about no interest
being paid if the deposits are not left
a year.. The government is not in the
banking business for profit. The gov
eminent is in the banking business to
facilitate and increase the national
savings and to promote economy and
thrift. The Postal Savings has not
scratched the surface notwithstand-
ing the magnificent conception of
public duty that inspired it's found
ing.
The Hoarded Billion
Postal Savings shall not compete
with savings banks. We do not want
depositors from savings banks. But
there is a tremendous boarded wealth
in the country estimated by many
well informed at a billion dollars.
The savings banks cannot bring it
out. The Postal Savings has not yet
brought it out. Nothing can bring
it out but the faith in the security of
the Government of the United States
and a larger interest return on the
deposits and the acquainting of the
holders with our purpose and their
opportunity. This we hope to do.
This money is needed in circulation
now. If a billion dollars can be
brought out of stockings and closets
and saved from waste and wild
cats" it will do i~ncalculable good. 1t
will make general bank %depositors
and ultimate government bond own
ers out of the timorous; it will give
small capital a chance for an honest
the same as large capital; 1t
will furnish the tonic to conclude the
business convalescence in the coun-
try and will help make economy and
I1--.fL -z4.o~-l 4~~.4 xo,,ol -aoIa1 /
We believe this can be done. First,
the government must stop profteer-
ing and the interest rate should be
increased from two or three per cent,
with a compensatory rate charged the
banks where funds are redeposited.
The method of computing the inter
est should be reformed so that the
depositors sholl receive interest on
funds held less than one year. Joint
and trust funds should be allowed
and the youth limit should be remov-
ed. Savings should be received at
instead of $500 post offices
and fourth class postmasters should
De fairly compensated for handling
he business. The funds should be
in local banks where col
ected and a more liberal arrange
nent perfected for depository banks
qualify. And the system should
re reorganized at the top with an en-
.rged board of directors into which
he Federal Reserve Bank may be
There is a lot of business in this
ountry that is really sick, still stag
.ering with the she'll shock of war
nd the debauch of extravaganza,
there is a good deal more that is
malingering. What WI need
1ore than anything else is the COM
ION sense of courage and confidence.
is, of course, the greatest era
f expansion and prosperity ahead
hat the world has ever seen. Every
knows this and the only question