Bankrupt Laws.—It sometimes happens, because of general depression in trade throughout the country, on account of losses, or for other reasons, that business men become heavily involved in debt. They are said to be insolvent. Now, it is but just that such property as they have should be divided in some equitable way among the creditors. A bankrupt law secures such a division, and the debtor is, at the same time, freed from all legal obligation to pay the debts which cannot be met in this way. The first law of Congress on this subject was passed in 1802, and repealed in 1803. Since that time there have been three other bankrupt laws, but the total time during which they have been in force amounts only to some twenty years. The last law, that of 1898, is still in operation.[[29]]
Some States have also passed insolvency laws. However, these must not in any way conflict with the provisions of the National bankrupt laws.
II. THE POSTAL SYSTEM.
Organization of the Post-office Department.—We can appreciate somewhat the advancement made in the postal service rendered by the government when we read that an Act of Congress in 1782 directed that mail should be carried "at least once in each week from one office to another." Our well-organized postal system, declared recently by the Postmaster-General to be the "greatest business concern" in the world,[[30]] has been evolved through laws made in carrying out the provision of the Constitution that Congress shall have power to establish post-offices and post-roads.
As is well known, the Postmaster-General, a member of the President's Cabinet, is at the head of this department of government. One of the chief burdens of the Post-office Department was formerly the appointment of the so-called fourth-class postmasters, intrusted to the Fourth Assistant Postmaster-General. Executive orders of Presidents Roosevelt and Taft placed 50,000, or about five-sevenths, of these postmasters in the classified service. An order of President Wilson, in 1913, applied the merit system to these offices, by which these postmasters were compelled to demonstrate their fitness for these appointments. This order included all fourth-class postmasters except those paying less than $180 a year. The other three classes, in which are included those postmasters whose salaries are not less than $1000, are appointed by the President, with the consent of the Senate.
Classes of Mail.—Mail matter belongs to one of four classes. In general, the classes and rates are as follows: First class—letters, two cents an ounce; second class—newspapers and periodicals, one cent a pound; third class—books, one cent for two ounces; and fourth class—merchandise, limited to four-pound packages, one cent an ounce.
Free Delivery.—Among the notable advances in the mail service was the provision for the free distribution of mail in the cities of 10,000 inhabitants, or where the annual postal receipts are $10,000 and above.
Rural Free Delivery.—No innovation in postal methods has been more successful than the free delivery of mails in the country districts. The development of the system, since its establishment in 1897, has been remarkable.[[31]]
Among the good effects resulting from its extensive introduction may be mentioned the following: (1) Correspondence in the communities affected has increased. (2) The circulation of the daily newspaper and of periodical literature has been greatly enlarged, and interest has grown in public affairs. (3) Good roads have been multiplied, for they are made one of the conditions for the introduction of the service. (4) Because the country districts are brought into daily communication with the centres of population, the tendency to quit the farm for the town has been lessened and thus rural free delivery is helping, in some degree, to solve one of the problems of our social and industrial life.
Postal Savings-Banks.—At various times bills have been before Congress providing for the establishment of postal savings-banks in connection with post-offices. It is proposed that they shall receive small amounts on deposit, paying a low rate of interest, and that the funds secured be invested in government bonds. A law was passed in 1910 which provided for the establishment of postal savings-banks. The plan has proved a success.