Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-13
j. S. POSTAL SAVING
ACCOUNTS GROWING.
Increase of 200, 900 Report.
ed in Depositors During
Last Six Months.
BY ]. C. RoYLE.

Individual depositors in postal saw
ings accounts have increased by 200,
200 in the last six months. Most of tina
number have been added in the las
three months. This is generally attrib
uted here to the fear which the fail
Iires of banks in some sections OF tn
country have inStilled in individual de
positors. This fear Is unwarranted II
all except few cases, bankers and Fed
eral officials say, but none the less there
have been a comparatively large numoei
of failures in the last IL months anc
depositors are turning to Uncle San
TO safeguard their money.
There has been a very substantial in
crease since June, 1880, in the total de-
posted with the Post Office Department
according to w T. S. Rollins, director
of postal savings. This, he says, ha!
been due to general economic condi'
tions. However, figures show that the
postal savings depositors in New York
City have increased $4,000 recently ano
this is attributed to the failure of New
York bank in December.
Total S236,OOO, 600.
According to the latest available OFF,
cial figures the total amount deposited
approximates 1896, 100000. AS of De-
Cember, 1929, the deposits amounted tc
SIO3,O44,UUU. OI1 Tie IlESt Qdy VI 1SoN
the individual depoSitors totaled 416,584
This number rose to 1885, in June
1880, and 100000 have been added since
Postal savings were started January l.
1911. and nave grown steadily.
The PoStoffice Department has had
its attention called to the practice
which has recently sprung up, of in
dividuals taking money drawn from
banks and buying money orders to
Ff7l,s
porary safeguard but gives protection
and at the same time makes the cash
readily available at any time, the pur-
chasers declare.
Money orders are cashable at post
Offices for one year from the last day
of the month in which they are issued.
After that the money to pay them is
turned over to the Treasury Depart
ment and they can be paid only on
presentation of a warrant drawn on
the Treasury Department This pro-
cedure has been established by an act
of Congress. 1t is estimated that there
is in the Treasury something approx
mating Sl2000,000 which has come In
from the Post Office Department for
money orders unpaid since 1894. The
annual volume of money orders aver
ages about 81 ESQ, 100000.
Decided opposition now exists at the
borrowing limit of veterans adjusted
service certificates. 1t is estimated that
] 5000 veterans, or about one-half,
have already borrowed up to the limit
of their certificates, which is about 22I5
per cent of the face value, and it is as
serted that If it Is made too easy to
borrow now the veterans will be with
out this protection at time when
years have made them less able to meet
the situation than they are at present
Money in Circulation.
Bankers are pointing out that the ap-
peals to put money into circulation
should not affect habits of thrift which
have become established. They declare
that money is as surely put into circula-
ton by depositing 1t in savings accounts
as by spending it. In one instance the
merchants put it into circulation and in
the other. the banks, since the main
business of the banks is to loan money
deposited by clients to make possible
and encourage legitimate business en-
terpriSes.
The bankers success depends on his
ability to put into the hands of con-
structive spenders part of the funds
which the depcSitors set aside for the
future. They point out that building
and loan associations financed the con-
struction of 100000 homes in 1929 while
the securities purchased by banks in
1880 furnished funds for a large volume
OF construction with attendant employ
ment Of many workers.
(Copyright 1871