POSTAL SAVINGS OF WIDE INTEREST W E Cochran Postoffice In Inspector Inspector Inspector of Denver Explains New System MEETS DEMANDS OF PUBLIC NEW LAW L W PROVIDES MEANS EANS FOR TOR SMALL DEPOSITS W W E Cochran of ot Denver Denv r inspector In to charge of hi his district de do delivered livered an address on Postal Savings Banks Bank at the recent convention of oC the tho Utah Postmasters Po association at Og Ogden OgI I den His Isla discussion follows follow While savings saving banks wore WON U hed a little more than a century ago the ho first postal savings savins bank system won was put In operation In England In 1881 1891 Since that time the system has hasteen been teen Incorporated Into the postal servIce service Ice co of oC every great nation In the world except Germany and a n great many of or orthe the smaller nations nation the United States being the last in the field flold With ref ret reference to Germany It be noted that hat the place of 0 the postal savings bank Is tilled filled by a e system of municipal banks janks Which render the postal savings bank unnecessary The saving savings bank system is la perhaps more highly bight developed and more ex In fa the tho eastern part of ot our own country countr than In any other place In the world statistics Statistic show how that of or the entire population of ot tho the state of Connecticut and one ono third of oC the population of the tho state of New York have savings bank accounts so ao that If other portions of ot the coun country countr country try tr were as well provided with saving facilities there would be no demand and end perhaps no Justification for the establishment of 0 postal savings banks bank But that there is to such a demand domand Is le shown by b the fact fart that In the year end ending lug ing March 31 U 1908 eight million dollars was ns paid at first t and second cond class post offices atone alone for United States Staten money orders order and this money was not only without Interest t but cost oost 30 cents a hundred simply for tor the purpose of 0 having hav having havIng ing the money securely kept Seventy million dollars dollar Is 19 went coat out of oC the country annually by b means of ot International International tonal money orders nineteen millions of ot this till amount goes gOeR to Italy Itah and while a considerable proportion of this money mousy is III ft remitted for tor the purpose of paying the passage age of oC relatives of oC the remit tors to this country It is I known that the tho larger lar er part of It Is hi wont sent for Invest Investment Investment ment meat In the savings banks of foreign countries and the UBe tied of ot the money is thus lost to us Ul UlIo Movement Io em nt Forty Years Old Ohl The enactment of 0 the law to etab establish felt lish postal savings depositories depo in this country marks mark the completion of oC a movement that was begun bogun nearly nearl forty years ago Postmaster ter General Creswell Cro well having recommended the adoption of ot a n system of postal pORtal savings banks bank In 1871 In 1873 1813 the Honorable Honor ble Horace Maynard I nard then a representative from the state 01 ot of Tennessee Introduced th the first ponta savings bank bill In Congre Mr Maynard was WaR afterwards postmaster general and did not fall tall to urge uree In that capacity the policy polley which he hod had at attempted attempted attempted tempted to establish while a member of 0 Congress Since Sineo that thal time nearly at nil atthe the postmasters postmaster general have recommended recommended recommended mended in their thorn annual reports that postal savings banks bank be established hed Postmaster General Meyer however was more active In this direction than thans any an of his predecessors and It was as largely largel tho the result of oC his efforts that a aal plank al was W put into the Republican na national national plat platform orm In 1908 1308 demanding tLe the establishment of such a n system The Democratic national platform also gave a qualified Indorsement to this protest project The present postmaster general In his last annual report says say It Is believed that they would prove proc here bore as they the have elsewhere of oC lne n benefit not only to those who directly use nee them tem but also to the gen general genral rat eral community Including banking In He says ys further That in the four years of ot 1906 1006 to 1809 no Inclusive United States St tM postal money viers o payable In foreign countries w wt issued in the thi vat vast sum of ot that 80 SO pe per cent aunt of ot this thin amount was transmitted transmUted U to to Austria Greet Britain Hungary Italy Norway Mornay and Russia nyla and that without doubt It constituted c n chiefly the surplus earnings of our newly arrived immigrants grants and foreign ol born laborers That Tha an American postal po tal savings saving bank would go far to stop lop this thin outward tide o ot of money mone and keep at home the earning of ot our people both native and foreign born there can be no doubt Urged liy by 1 The Tire adoption of oC o a postal petal savings bank system was wall strongly urged by b President Pre Roosevelt In hi his hili message m ge to Congress In 1908 1798 and by President Tart Taft In tn hl his bill message In December 1103 President Ire Taft Tatt also alloo made matle the postal posta po tal savings bank bill the subject of 0 a speech at Milwaukee ills WIs on Decem t her bet 17 1901 1301 It Is 18 estimated that about one bil lion dollars In cash IK is kept out of or cir clr circulation by being hoarded and that tha more than half of or this amount will be restored to circulation when the tbd postal pata savings aln s depository system Is In sue suc successful operation President Taft TaCt In till his Milwaukee speech already men tinned Mates that those savings banks bank will m furnish us five fIo hundred or six hun dred dr d millions and that Is a very tidy td Ud pile pUe to have Ilae around for Cor the tine govern goern government ment to use legitimately in order ti to carry on any an financial operations President Taft a as governor of ot the tho Phil established hed a postal savings system s tem In those Islands Island In 1906 In 1900 there were vere accounts nearly of oC which were pre opened by b Fill pi no But DuL on the other hand wi we we forced Into liquidation a system of ot pos poe tel tal savings banks bank II which had hind been Ileen In successful operation for fourteen n years ORt whon the tho po In the territory of ot Hawaii were taken over by our department in 1900 Tho great English statesman Wil lIam Ham t i K Gladstone In reviewing hi his record near the close of o hi his poll t tea career male made this statement twenty seven eon years oars after r the tho British postal savings banks had been established The savings 8 bank Is la I the moat most Important Institution which has boon been created In th the last fifty years for tor forthe forthe the lH of the people and antI the state I J consider the act of oC 1861 which called the tho Institution Into existence a as aa the most moat useful and fruitful of oC my long career Detail of o System But the tho convention will probably be bo more moro interested In the details of the they system y tem under which we are to operate than In any prolonged discussion dl cu elon of oC tho the benefits of postal pORtal savings banks The law provides that tho the system shall be beo controlled o by b a 0 board of ot trustees con consisting conal slating al of o the th postmaster general the tho secretary of the treasury and tho the at attorney attorney torney general who shall make such regulations for tor tho the conduct of oC tho the business and establish the depositories depo at such Much as they thoy may ma designate designate nate It provides that th t a savings account ac nc account count c may be opened by b any person portion of the age of ot 10 years or over but bul that at least 1 must be deposited to open the tho account In order that smaller amounts may mB bo tio accumulated for de deposit depo posit po lt a postal savings card to cost coat 10 cents Is I provided for to which are to ho attached postal savings stamps tamps of the denomination of or to cents and the card oard with nine nino stamps tamp attached may mo be used for opening an on account or for tor making a deposit after an account has been opened open d Not more than may maybe MO maybe be deposited in a month and anti the amount of the deposits Including In Interest Interest terest shall not exceed 00 The founds BO so deposited draw Interest atthe at nt atthe the rate of ot 2 S per cent per annum but whenever 20 0 or any an multiple of 30 20 have been accumulated such fluch amounts may mar be exchanged for United States Statu bonds which shall hall bear benr Interest at at tho the rate of oS 21 26 per cent cont The law reads that of the deposits 6 per cent is a to b be withdrawn and do de deposited posited with the treasurer of ot the tile United states as a reserve 30 per cent ceat may be withdrawn by the trustees for vestment in in United States Stat bonds or orther I Iother other ther securities and the remaining 65 85 per cent nt Is la to remain on deposit in insolvent I solvent banks beaks in the tile in which he tho funds accumulate and on the amounts so deposited the banks bonks are areo to o pay Interest at the rate of oC Z i percent per percent percent cent The Tho law also allo requires that the tho post postmaster postmaster postmaster master general shall prepare pre aro and issue special stamps of necessary lons tlona for use In lieu of ot penalty or ranked franked f In n the transmittal of or tree iced mall resulting from the ad administration administration ministration m of this not act mb N o 0 additional compensation is to toe be b ic e allowed to postmasters or post postoffice office o for tor the transaction of postal pORtal depository business except at nt office of tho the fourth discs class 01 alii These There of offices offices offices resoled receive not to exceed of oC 1 per cent of the average sum upon uton which Interest has hns been paid each cal calendar calendar e year on an receipts at the respective fo offices Whore Where bero First Piret Established It cannot be known until the r regu regulations equations lations l are prepared by the board of ot trustees at what offices dittoes the system will w ill first bo be established Representative lve tive ti ve Gardner Gerdner who is e next In rank to the t he chairman of the House postoffice committee stated that in his opinion the he system would be put In operation rivet in the offices and then extended to some offices It Is le entirely possible however that the board 1 of oC trustees may take a dif different different different ferent view Vi 0 of oC the tho matter and all we wo can do Js 18 8 to wait walt patiently until the official regulations aro are promulgated