Evening star., 1922-07-30
BY EDWARD NELSON DINGLEY.

N these days Of anxiety arising from
the colossal war debts of nearly
all civilized nations, especially
those Immediately involved In the
conflict. the question Of thrift and saw
ings Is one of tremendous importance.
1t is the only road leading to normal
conditions and economic safety. Hence
the postal savings system becomes one
Of the most important factors in the
solution of the financial problems
facing the nation. The practice Of
tho habit of saving leads to better
citizenship. Every depositor in a
government savings institution has
stake in tho country, and there
fore, as a rule. Is against disorder
and anarchy.
After an experience of twelve
years. 1t can be said that the United
States postal savings system is a
success. All opposition to the PEA
has disappeared and bankers theSi-
selves agree that large amounts of
tical use which otherwise would be
hidden and sent out of the country
ultimately.
HVtSkBnero SUDR1C1Ou0s
It is singular, but nevertheless true.
that prior to 1910 most foreigners
coming to this oorntry as immigrants
seeking employment entertained a
suspicion OF all private banks and
institutions Of savings. They doubt
ed their security. and the safety of
the money deposited therein. Con-
sequently these immigrants hid their
earning until they had enough to
send back to the old country. where
they felt government saving de-
positor1es were safe.
Great Britain has had government
postal repositories since 1861, Canada
since 1868, France since 1882. Austria
since 1888. Belgium since 1869. Hun
Eefysr1a Eafy slnSs nee ,SN isss asaly since 1875
immigrant from these countries con-
trasted his experience with postal
savings depositories in his own
country with tho stories of failures
of private banks and the losses en-
tailed in this country. He learned
that between 1875 and 1879 the fall
ures Of state and private savings
banks In twenty-three states num-
bered 210. with losses amounting to
$30,616.o00. In the year 1879, in the
states of Ohio and Illinois alone, the
over $S.000,000. Furthermore. private
savings banks prior to 1900 did not
fill the need. They were concen-
trated in the larger cities Of the east
and middle west.
Long Agitation Required.
Agitation for a United States postal
savings system began in 1871. 1t was
not an accomplished fact until June.
1910. after a lapse of thirty-nine
years. At each periodical discussion
Of the subject a multitude of obstacles
was offered. All objections were
overcome finally. and. in fve years
the depositors numbered. $50. 900. with
balances to their credit amounting to
wage earners largely. the greater
proportion being foreign born who
dfstrusted the private banks of their
own country and carried with them to
this country something of this same
distrust.
At the end of the first five years of
the operation of the system 1t was
found that the Russians outstripped
other forefgn-born depositors the
Italians coming next, with natives of
Great Britain third. Austrians, Hun
garians. Germans, Swedes and Greeks
followed in the order named. Almost
one-third of the deposits were in
New York state.
Had Remarkable Growth,
The first five years witnessed a
marvellous growth under serious mis-
haps. 1t was an experiment. The
banks feared that the government
would invade the legitimate domain
of private enterprise. On the con-
trary. the postal savings system has
invaded the domain of hidden money
has brought money from stockings
and cans and other hiding places
and restored 1t to the channels of
active trade and commerce.
The original law provided for the
payment of per cent interest to de-
positors. the Post ONCE Department
redepositing the funds in the several
banks in the community in proportion
to their size, and deposits receiving
2 ~ per cent interest therefor. The
v per cent margin Is for cost of ad-
mfnistration. Up to June, 1915, the
department had turned into the Treas
ury 1857. 900, this being the difference
between the interest paid and the in
terest received. Deducting the cost of
government for the fiscal year 1915
was $42l.000.
From the beginning Of the service to
1915 the depositors received over
$6.000.000' in interest. The postal saw
ings system has never lost a dollar
by reason of insufficient security. The