People's Pilot, Volume 6, Number 35, Rensselaer, Jasper County, 18 February 1897 — GOVERNMENT BANKS. [ARTICLE]

GOVERNMENT BANKS.

A SECURE PLACE TO DEPOSIT THE PEOPLE’S SAVINGS. A Description of the Postal Sayings Banks of Canada —We Are Not a Government by the People But for the Trnsts. Chicago Sentinel: No other question Is to-day attracting more notable attention from the public than that of postal savings banks, and the numerous bank failures all pver the country causing loss to depositors amounting to many millions, is steadily adding to the interest taken in this question. While the subject is under consideration a report of the plan as carried on in Canada will be of interest. After it had been demonstrated that the postal savings bank was a marvelous success in Great Britain, the colonies generally followed the example of the mother country and established like systems. Canada was one of the first to see the benefits of the postal savings bank, the system in operation in that country dating from April 1, 1868. It has been highly successful in its workings. Money order postoflices, on designation by the postmaster-general, become agencies of the postal savings bank. Deposits received are forwarded to the central savings bank in the postoffice department at Ottawa, where all accounts are kept. Deposits of $1 or of any number of dollars are received at the postoffice savings banks, subject to the limitations that not more than SI,OOO may be deposited in any one year, and that no depositor can have standing to his credit on the books of the postmaster-general more than $3,000, exclusive of interest. No interest is allowed on a sum above $3,000. This limitation is considerably higher than in most countries having the system in operation. Every depositor, on making his first deposit, is required to specify his Christian name and surname, occupation, and residence, to the postmaster receiving such deposit. He also signs a declaration that he has no funds in the postoffice savings bank either in his own name or in the name of some other person. When this declaration is made on behalf of a child under 10 years of age the signature of a parent or friend must accompany that of the child. When deposits are made by or for a child under 10 years of age repayments are not made until the child reaches the age of 10. In addition to the postmaster’s entry in the pass-book, a depositor receives for each deposit a direct receipt from the postmaster-general. A depositor in any of the savings bank postoffices may continue his deposits at any other such office, and may withdraw money at the savings bank postofflce which is most convenient to him. A depositor wishing to withdraw the whole or part of the sum standing to his credit makes application therefor on a printed form that is furnished by postmasters. This application for withdrawal must specify the number of the pass-book and the name of the savings bank postoffice at which the book was' originally obtained, the sum required,, the depositor’s occupation and residence and the name of the savings bank postoffice at which he desires to receive the post-master-general’s check in repayment of his deposits. On receipt by the post-master-general of such application, duly filled up and signed, a check is sent by return mail to the postmaster designated for delivery to the depositor. When the withdrawal check is forwarded by the postmaster-general the depositor also is notified. When he applies to the postmaster for his money he produces his pass book for the entry of the repayment. The checks are drawn on the Bank of Montreal, at Ottawa. When the postmaster has funds on hand he is expected to use them in cashing depositors’ checks.

Children over 10 years of age and married women are given the same privileges of deposit and withdrawal at the postoffice savings banks as are accorded other persons,

The rate of interest paid on deposits is 3% per cent. Until recently it was 4 per cent. Interest is computed from the first day of the calendar month next following the day on which the deposit is made up to the first day of the calendar month in which moneys are withdrawn. June 30 of each year interest is added to principal. Once each year every depositor forwards his book to the postmaster-general, in order that Entries-may be with those in the books of the post-master-general, and that interest due the depositor may be credited. No charge for postage is made depositors for transmissions to the postmastergeneral. Postmasters and other officers of the postoffice are forbidden to disclose the name of any depositor or the amount deposited or withdrawn by him, except to the postmaster-general or to such of his officers as may be appointed to carry out the provisions of the postoffice savings bank act. The growth of business done by the postoffice savings bank has been remarkable. For the year ended June 30, 1896, the amount of deposits was over $8,000,000. The total amount standing to the credit of depositors on the same date was almost $29,000,000.