Evening star., 1922-07-30
POSTAL SAVINGS SYSTEM
EARNING LARGE PROFITS
Proposal Now Before Congress to En-.
hance Its Popularity by Increasing
the Interest Rate.

, ouik OF the savings deposits is in six
teen states: New York. Illinois. Penn
chusetts, Michigan. New Jersey. wash
ington. Minnesota. Missouri, Oregon,
Wisconsin, Colorado, Connecticut and
Indiana. The federal reserve act of
1914 prohibited the deposit of any
postal funds in non-member banks
From 1910 to 1915 the cost of the
postal savings service averaged about
$4,000 annually.
Not So Many Depositors.
The individual depositor is given a
certificate or receipt. the various de-
nominations being from 81 to $500, the
latter sum being the largest sum al
lowed to be deposited at one time. In
1913. before the world war; there were
1880 repositories, 331.006 depositors
and deposits of $33.s1s.s7o. In 1914
the depositors increased to 1851 and
the deposits to S43,444,271. In 1915 the
depositors increased to 525,4l4 and the
deposits to $65.6S4.70S. In 1916 the
deposftors increased to 602.937 and the
deposits to S86,0S9,sS5. In 1917 the
deposftors increased to 674,72S and the
deposits to $151.954,6 In 1918 the
depositors decreased to 612.1sS and the
deposits increased to 4s.471.4ss.
W a
was large emigration, depressed bust
ness conditions and unemployment.
The result was decline in the num-
ber of deposftors, but a small increase
in deposits. In 1919 there was a still
further decline in depositors, but a
small increase of deposits to $167,323,-
$50. In 1920 business depression was
reflected in the decline of depositors
to 508.508. and a decline of deposits to
$l57.216.322. At the close of the fiscal
year 1921 there were only 466.1o9 de-
positors and deposits of only S152.3s9.-
903. These decreases are principally
attributable directly to the return in
great numbers of foreign-born deposit
tors to their native countries. after
period Of restricted emigration.
For Higher Interest Rate.
June 80. 1922. the total deposits in
the postal savings system amounted
to about $4,000. 900, and the amount
turned into the Treasury was more
than $2.50o,0o0. The largest sums
were deposited in these cities: New
York, s45.556. 900: Brooklyn. s13,766.-
900; Chicago. $S.5ss.oOo; Boston. s6.-
272.o00; Seattle, s3,143.o00; Pittsburgh,
$2.745,0o0; Philadelphia. s24ss. 900:
Detroit. s2,234.000: Takoma. S1.662.-
442; Portland. Ore. 81. .4S7 900; Newark.
$1,486 900: Kansas City. s1.465.000. The
total deposits in Washington. d. C.,
was s360.351.
In an effort to check the decline in
the number of depositors and the
amounts Of deposits. on the Sd of July.
1921. Postmaster General Hays called
attention to the fact that with $751;
100000 on deposit from 50s,000 depos-
itors, the government made net
profit over all interest payments and
80 e SO he .
'is sheer profiteering. This money
belongs to the depositors. The gov
ernment is not in the banking busi-
ness for profit There is a tre-
mendous boarded wealth in the coun-
try estimated at billion dollars
Nothing can bring it out but the faith
in the security of the government Of
the United States and a larger inter
est return on the deposits and the ac-
quainting of the holders with our
purpose and their opportunity
The interest rate should be increased
from to per cent The method OF
computing interest should be reformed
80 that the depositors shall receive
interest on funds held less than one
year. Joint and trust funds should
be allowed and the youth limit should
be removed"
A bill is now before Congress to
permit any person of whatever age
and married women to deposit IN
their own name, free from control or
interference: permitting creoit
balance of $1,000, permitting deposits
in any solvent bank and authorizing
the payment of interest at the rate
Of 5 per cent instead of per cent.
as now.
Has Great Possibilities.
The possibilities of the postal saw
ings system are great; the education
priceless. 1t promotes patriotism and
love of country-their adopted coun-
try. 1t establishes a familiarity witt
our monetary and credit system and
assists in maintaining an economic
ratio between wealth, population and
business demands.
Hiding and secreting money invites
theft and cultivates suspicion. Fur
thermore, 1t tends to reduce the VOL
ume of money in circulation. The
volume of currency in circulation"
is better known, thus minimizing the
variation in price which follows ex-
pansion and contraction of money
always.
The Post Office Department is max
ing an effort to supplement all other
undertakings to Americanize our for
eign-born and to assist the other
branches of the government in solv-
ing the many serious problems con-
fronting them. The postal savings
system is one OF the methods en-
ployed to bring about these desira BILE
results.