29
THE CHICAGO BANKER
December 5, 1908]
Postal Banks Again Urged Upon Congress
cial institutions. Practically all the leading nations, with the exception of the United States, have postal savings banks in successful operation.”
Asks Rural Parcel Post
In turning to consider rural parcel post, Mr. Meyer declares that its establishment would benefit 18,000,000 persons, and that it would result in millions of additional revenue to the postoffice department.
In part Mr. Meyer says:
“Should the Congress grant the department authority to utilize rural routes still further by the establishment of a limited parcel post confined entirely to rural delivery routes, it would then be possible to earn additional revenue amounting to millions of dollars, and at the same time benefit the farmer by enabling him to have merchandise delivered when ordered by telephone or postal card, which would otherwise not be purchased. Frequently consumption is reduced owing to inability to secure articles at the time they are wanted.
“The result would be to increase the business of local merchants and country stores by facilitating consumption and the delivery of goods. It is of incalculable importance that these small dealers throughout the United States should not be driven to the wall. It has been estimated that if every rural carrier delivered fifty-five pounds each trip an income of $15,000,000 would be earned in one year. Were the Postoffice Department a modern business corporation its board of directors would not hesitate forty-eight hours to utilize the present machinery and establish a limited local parcel post on rural routes.
“The special local parcel service will enable the farmers to have small parcels delivered at their gates, to live better, and to more easily obtain the necessaries of life. The increased consumption will in turn increase the business of the local merchant and benefit the jobber by the additional orders transmitted through the drummer.”
Wants to Make Test
Mr. Meyer then urges that he be given authority to establish rural parcel post in four counties of the country in order to test the system.
The report states that the rural free delivery system continues to grow and that it is now established on nearly one million miles of road. “Thus the necessity for good roads becomes more apparent,” says Mr. Meyer. "The policy of the department in insisting that all roads covered by rural delivery shall be maintained in traversable condition throughout the seasons lias resulted in greater advances toward universal good roads than ever before in the history of rural delivery.”
Experiments are being made with automatic stamp-vending machines, which, when perfected, will be of great convenience to the public. They will be placed in postoffice lobbies, drug stores, hotels, railway stations, news stands and department stores.
In touching upon the 2-cent rate to Great Britain the report declares that it “will prove another bond toward social and commercial relations between the two great English-speaking countries.”
V*
The First National of Kerman, Cal.
The First National of Kerman reports capital of $25,000, and deposits of $10,000. William G. Kerckhoff is president: A. J. Hecht-man, vice-president, and J. P. Myers, cashier.
V*
The First National of Austin, Minn., has extended its corporate existence.
“There has been apprehension in some quarters that postal savings banks would enter into serious competition with established banking institutions. The foregoing figures show conclusively that the postal banks would operate principally in a territory not now covered by private enterprise.
“As an evidence of the demand for postal savings banks we have reports from postmasters that they have been compelled to refuse to accept deposits offered by foreigners for safekeeping, and also that our own people have bought postal money orders during the last year payable to themselves to the extent of $8,104,447, on which amount fees of $25,000 were paid. These money orders were bought to the greatest extent in the states of Arkansas, Colorado, Kansas, Missouri, Montana, Nebraska, Nevada, Oklahoma, Ohio, Oregon, Texas and Washington.
Use Foreign Postoffice
“A postoffice inspector has reported that one family residing near a small postoffice in the State of Washington has $11,000 on deposit in the postal banks of British Columbia.
“Under the bill now before the senate with a favorable report from the committee on post-offices and post roads, the money would be widely distributed, as it would be placed in the national banks in the districts where the deposits were first brought to the postoffices. The government would not go into the banking business. The national banks are to pay 2% per cent for the deposits, the government in turn to pay the depositors 2 per cent, retaining one-fourth of 1 per cent in order that the system may be self-sustaining. No interest would be paid by the government on deposits over $500.
“The deposits would be guaranteed by the government, as it would make itself responsible by receiving them.
“Postal savings banks fgpuld foster thrift and increase the habit of savings in many states and localities where opportunities do not now exist, and would in the end serve as feeders to the regular stock and mutual savings banks, where greater returns would be received Thus they would be a real benefit not only to the people, but also to existing finan-
PRODUCE BANK OF CHICAGO
NATIONAL
CORNER CLARK AND LAKE STREETS
Statement of Condition at Close of Rusiness >'ov. 27, !90S
RESOURCES
............8678,767.63
............ 175,464.97
.......... 1U0,000.00
............. 11.606.92
.............. 5,000.00
$156,511.40 188,141.64 344,653.04 $1,315,492.56
Loans and discounts......
Other bonds and securities.
United States bonds.......
Furniture and fixtui־es..
Due from U. S. Treasurer..
Due from banks............
Cash......................
LIABILITIES
.. .$250,000.00 ...	50,000.00
...	10.632.63
.. 100,000.00 ... 904,859.93 SI,315,492.56
Capital stock....
Surplus.........
Undivided profits
Circulation.....
Deposits.........
RALPH N. BALLOU, Cashier
EDWIN L. WAGNER. President
DIRECTORS
WILLIAM WRIGLEY, Jr.	WM. E. PHILLIPS
CHARLES W. HIGLFY	WM. P. WAGNER
EDWARD R. DAVIS	FRANK B. PETTIBONE
EDWARD DICKINSON	EDWIN L. WAGNER
GEO. A. MACLEAN
A general banking business transacted. Three per cent paid on savings accounts
Commenced business August 26, 1907
Washington, November 29.—Establishment of postal savings banks and of a rural parcel postal system is emphatically urged by Postmaster-General Meyer in his annual report. He devotes a considerable portion of the first part of his report to the consideration of these two subjects, taking the position that both the postal banks and the parcel post are institutions which will prove of the most widespread convenience to the public.
The report also states that there is a deficit for the year in the postal department of $16,-910,278, which is the largest in the history of the department. The blame for this deficit is laid upon the financial stress of the past year. The increase in revenue last year was but 4.29 per cent, while the normal increase in revenue annually has for some time been about 9 per cent.
Sees Aid to Prosperity-
In considering the postal savings bank question Mr. Me3^er states it is estimated that $500,000,000 now in hiding •would be put in circulation through these banks.
In regard to the general subject Mr. Meyer says in part:
“I again urgently recommend that legislation be enacted permitting the Postmaster-General to establish postal savings banks or depositories in connection with postoffices.
“The deposits in savings banks of the United States as reported to the Comptroller of the
Currency are as follows :
New England (six states).........$1,257,537,895
New York......................... 1,378,232,780
New Jersey.........................  92,631,487
Pennsylvania ...................... 160,638,670
Maryland ........................... 78,469,584
Ohio ................................ S3.93T29I
Illinois .......................... 181,361,054
Iowa . ._.......................... 132.748,558
California ........................ 254,695,083
In 14 states (98.4 per cent) .$3,590,245,402 In the remaining 12 states and all
territories (1.6 per cent).......	70,308,543
Total ........................$3,660,553,945
“The table demonstrates that while the money in savings banks amounts to $3,660,-559,945, only 1.6 per cent, or $70,308,543, is in thirty-two states. The fourteen other states are fortunate in possessing savings bank deposits to the amount of $3,590,245,402, or 98.4 per cent. This is of great advantage to the latter states, as it increases their financial resources and thus aids in their development.
“In the thirty-two states referred to there are many localities where there are no savings banks and in some cases no banks of any kind. It is there that considerable money is held in hiding, which is neither absolutely safe nor in circulation for the benefit of the community. It has been estimated that altogether fully half a billion dollars not to-day placed in any bank, due to want of opportunity or lack of confidence, might be brought back into circulation through the agency of postal savings banks.
Sees Example in Japan
“In Japan the total amount of deposits in postal savings banks is about $46,000,000, an average of $5.77 to each depositor. This money would not in all probability have found its way into the channels of trade but for the postal savings banks.
“The additional opportunities for saving that can be afforded the people by postal banks in this country are made apparent by the fact that there are 60,624 postoffices, 40,000 of which are money-order postoffices.