14. POSTAL SAVINGS BANKS. Defi nition.— A governmental agency, operating through the post-offices, for the encouragement of thrift among the masses of the people by providing widely, distributed and convenient de positories wherein small sums may be placed at a comparatively low rate of interest, with the faith and credit of the government pledged to the repayment of principal and interest on demand.
History.— '
oln December, 1838, the practice of trans mitting money by means of postal money orders throughout the United Kingdom was author ized. By that tinie the advocates of postal sav ings banks had become quite numerous, and they found in the successful workings of the money-order system one of their most telling arguments.
°It is interesting to note that the plan of postal savings banIcs which finally was adopted was proposed by one engaged in commercial banking— Charles W. Sikes, a boolckeeper of the 'joint-stock) bank of Huddersfield, York shire. He presented his composition on the subject to that eminent statesman, W. E. Glad stone, then Chancellor of the Exchequer. He cited many pertinent facts tending to show the need of postal banks, among them being that, although private savings banlcs had greatly in creased in number and deposits, they did not come within the reach of the common or most numerous classes of the people. This, he stated, could be done only by the post-offices, which were accessible to every workman. Mr. Sikes was encouraged, • and seconded in his efforts by Mr. Rowland Hill, who had been ap pointed general secretary of the post-office for life in recognition of his valuable services as a postal reformer. Mr. Gladstone also eloquently supported the bill, which became a law in May, 1861, and on 1 September of the same year the British Post-Office Savings Bank came into being.
aIt is well Icnown that Mr. Gladstone was before the English public prominently as a con structive statesman for many years. His opinion of the importance and value of postal savings banks' is best given in his own words, uttered in the House of Commons in the year 1888 amid universal applause. He said: 'The post-office sa vings hank is the meet important in stitution which hal been created in the last so years for the welfare of the people and the State. I consider the act of Mx which called the institution into existence as the most useful and fruitful of ray long career.' °Charles Sikes, actively concerned in the adoption by Great Britain of the postal savings bank, was not unrewarded. He was lcnighted in 1881 upon the recommendation of Mr. Glad stone, then Premier. He was appointed to an important office under the government, and public subcriptions even were made and a valu able gift tendered him in appreciation of his good work)) (United States Senate Report No. 125, 61st Congress, 2d Session).
The Movement for Postal Savings Banks in the United States.-:--- Following the lead of England almost every considerable nation, with the exception of Germany, which has a splendid system of municipal savings banks, established postal savings depositories. The movement for the establishment of postal savings banks in the United States extended over a period of nearly 40 years. The subject was first brought for ward officially in this country by Postmaster General Creswell in 1871, and met with the im mediate approval of the press and the people. Eight succeeding Postmasters-General recom mended the establishment of such banks and 80 bills were introduced in Congress between 1873 and 1910 to effect the purpose. The bill which eventually became the law was introduced on 26 i_an. 1910, by Senator Thomas H. Carter, of Montana, and was referred to the Committee on Post-Offices and Post Roads, of which Sena tor Carter was a member. It was reported back by the committee on the following day. The bill with various amendments passed the Senate on 5 March. It was referred to the House of Representatives on 7 March, where it was extensively amended, and was finally passed on 9 June. The Senate concurred in the House amendments on 22 June, and the bill was signed by the President on 25 June.