Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-02
To Raise Postal Savings Limit
BY FREDERIC J. HASKIN.

recommendations are to he made
to Congress to raise the limitation
from $4,000 to 5000 for postal saw
ings. At the present time no one
deposition may hold more than 81, 500
worth of postal certificates. Post
master General New, in a report to
the House of Representatives,, as
chairman Of the board of trustees of
the postal savings system, urges the
need for raising the limit.
The postal savings system has been
in OPERA ton over Is years, and, as has
been said by one of the largest bank
ing houses of the United States, has
passed beyond the experimental stage
and now may be safely regarded as a
permanent Government institution"
1t Is pointed out that this limitation
is hampering, since there are many
depositors who have reached the legal
limit, and who would further utilize
the service If the total deposits which
can be accepted from an individual
were substantially increased.
The postal savings system has been
the refuge of the tinlid ones who fear
to bank their money. There are
many, both native and foreign born,
who have fear of banks. but who
have implicit confidence in Uncle
reason to be fearful because they
have put their faith, and their saw
ings, into institutions which have fail
ed for one reason or another. Some
years ago a pseudo private savings
bank on the New York East Side
closed, leaving hundreds of depositors
without a penny of their life savings.
Most of them were Italians, and many
didn't understand what 1t was all
about, and stood patiently all night
in front of the bank waiting for the
return of those to whom they had
intrusted their money.
They Trust the Government.
After the above failure the Post
master General directed that $4,000
circulars be published in the Italian
language and distributed on the East
Side. These told of the postal savings
system and invited these newcomers
to America to avail themselves of the
security afforded by the Government.
AS a matter of fact, leaflets telling
how to make use of the postal savings
system have been published in n great
many languages so that the man com.
ing from any part of the world may
understand how he can save his
money and be sure Of not losing II,
and they have brought thousands of
depositors.
Postal savings certificates may be
purchased In denominations of /, 2, 5,
10, 20 and so cents. and 81, So and S..
The stamps take the place of a de.
positor's pass book or deposit slips
issued by commercial banks. When a
depositor wishes to withdraw any Of
his money he simply presents to the
postmaster q stamp OF the denon1ina-
tinn rvhich ha WA ntg raQhA6
Postal savings certificates may be
exchanged on January / and July /
of each year for postal savings bonds
bearing interest at 212 per cent. A
growing appreciation of this facility
was indicated during the fiscal year
1926 by the fact that such bonds to
the amount of $544,16 were issued to
| 496 depositors, which was an increase
of $213,O20 over the year 1925.
| Although the number of depositors
decreased during the fiscal year 1926,
the loss in accounts being rs per cent,
| the average principal per depOsitor in.
creased 2.29 per cent. Also the classi-
| fication for 1925 shows that the dis.
tribution of deposits has become more
widespread and n more varied use of
| the system Is reflected.
Bankers Once AntagOnistic.
| w men the pUStdl shflil6s SyStSIi
| first went into effect banking institu-
tions were inclined to be antagonistic
toward it. There was a tendency on
| their part to feel that some of their
| legitimate business was being taken
| from them. 1t is, therefore, inter
esting to note what postmaster in
large city recently said: AT this
time it may be well to state that
almost every one of the 10 local banks
| holding postal savings funds has come
to believe in the system as a valuable
aid to their own business in training
savers and circulating funds"
| Postmaster General New in his re-
port further makes the comment that
the postal savings system has indeed
been a refuge for the timid in the
areas of hank suspensions in the
| West, Middle West and South. II
has proved a stabilizing influence in
the financial circles of these regions
also, since the funds that are deposited
with the postmasters are redeposited
in the bank, thus completing a circle
and showing a sympathetic co'opeTa'
ton with the business world.