Triumphs and Wonders of the 19th Century: The True Mirror of a Phenomenal Era / A volume of original, entertaining and instructive historic and descriptive writings, showing the many and marvellous achievements which distinguish an hundred years of material, intellectual, social and moral progress

by James P. Boyd

VIII. POSTAL SAVINGS BANKS.

Many believe that a system of postal savings banks could be generally introduced into the United States. Such banks doubtless appeal to those who have more confidence in the Government than in any association of individuals. Their safety may be conceded, for when the Government fails other institutions are likely to go the same way. But when people deposit money in a postal savings bank, they make a loan to the Government. This implies that the Government must be a perpetual borrower, whereas, until recent years, the United States has been a debt-paying nation, and in the course of affairs may soon be again. Unless we are to have a large permanent debt, the deposits in postal savings banks would have to be invested in general securities. Such investments could not well be made by the post-office officials of the country.

In Great Britain these banks have been in existence for about thirty-eight years, and their number has grown to about 12,000, with more than 6,000,000 depositors. The system prevails in a number of other countries. The more concentrated and paternal system of government prevalent in countries having these banks renders their management a much less difficult problem than it would be in the United States with our large areas, vast number of post-offices, and general diversity of conditions. In Great Britain the deposits in the postal savings banks are made at the money order post-offices in a pass book held by the depositor. Withdrawals are made by filling up blank forms, and these withdrawals may be made at any money order post-office. Deposits are invested in the public debt, and the rate of interest is about two and one half per cent. The postal savings banks of Great Britain contain deposits approximating $527,000,000; those of France, $152,000,000; those of Italy, $90,000,000; those of Belgium, $67,000,000; those of Canada, $31,000,000.