Home >> How-to-build-a-fortune >> Appropriation to What Can The Man_p2 >> The Postal Savings Bank_P2

The Postal Savings Bank

The great advantage of this simple method of conducting the banks is that it requires only twelve bookkeepers to keep Uncle Sam's postal banks accounts, whereas, with the pass book system, England requires two thousand bookkeepers and one thousand additional clerks. The world is beginning to study our system, and Japan is already considering its adoption.

The System has been popular with small depositors from the very start, and now, after only two years of operation, it is practically self-supporting. In fact, Postmaster-General Burleson has just added a "banking by mail" feature to the System, which practically brings the bank to the door of every man in the coun try. The System has found greatest favor among the foreign-born, who have more than half of the total deposits. And, while the international money orders sent abroad fell off twelve million dollars during the second year of the System's existence, the amount of pos tal deposits mounted from eleven million dol lars (the first year) to twenty-eight million dollars, and there are many more millions hidden away in odd corners which will in time be brought out and put into circulation by being placed in one of Uncle Sam's banks.

Finally, the System is making of us a na tion of savers. We are forming the habit which is probably the best habit of all—stor ing up against a rainy day without removing our hoardings from active circulation. It is a question whether France will continue to hold the record as a nation of small savers, if the amount of our postal savings deposits keeps bounding upward as it has been doing thus far. And the beauty of it all is that the regular banking institutions, far from being disturbed, are really benefited, in that more money is kept in circulation and the chances of national panic greatly lessened.

It is to be borne in mind that the figures given above are based upon the last fiscal re port. The actual present postal deposits are estimated at over thirty-five million dollars.

Deposits in the Postal Savings Bank draw a low rate of interest, two per cent. Money

may, however, be reinvested in government bonds.

At any time that your deposit is sufficient you can exchange your certificate of deposit in the Postal Savings Bank for Government bonds. These bonds bear two and one-half per cent interest. But the most interesting feature about them is their denomination. They are issued for amounts of twenty dol lars, forty dollars, sixty dollars, eighty dol lars, one hundred dollars, five hundred dollars, and so on.

It is probably true that few people know that they can buy a United States Government bond for twenty dollars. This makes it easy to become a bondholder. These bonds are the best kind of security in the world. They are a positive asset and non-taxable.

By the purchase of these bonds freely by our people, the art of saving should become more widespread than it is. The interest re turn is not high, but the security is worth the difference, especially to those people who do not know how to buy general market securi ties paying a higher interest rate.

If there is no Postal Savings Bank yet ar ranged at your post office, you may expect to have one later. In the meantime, ask for it. Undoubtedly the Post Office Department will make postal banks universal as soon as the demand is of like character.

Money hoarded under a brick in the fire place or in an old stocking is withdrawn from circulation, and is practically useless. It has stagnated. Further, it brings no interest, and it may be lost or stolen. Such funds are far better brought out of hiding and put to work. Once you become the owner of a bond, even of twenty dollars, you will try to keep it in your possession; while twenty dollars in loose cash is easily parted with, because it is in cash.

Begin with a dime.

Keep it up until you have saved dimes enough to buy a bond.

Do not part with the bond.

Save the interest.

Keep on repeating the operation.

You will then be able to pension yourself. And, all the while, your money is safe.

Page: 1 2

dollars, system, deposits, bonds and money