POSTAL SAVINGS BANKS. The system of savings banks conducted by various govern ments through the Post-Office Department. This institution has become increasingly important since it was first introduced in England in 1861, and to-day all the principal nations of the world, except Germany and the United States, have adopted it. Its adoption in England was due to the inadequate facilities and incompetent management of the trustee banks. In 1860, out of a total of 638 of these hanks. 350 were open only one day in the week, and then for only a few hours, while 20 towns and 14 counties, each containing over 10.000 inhabitants, were wholly without savings facilities. Similar conditions existed in the countries of Continental Europe. Thus in France Leon Say estimates that prior to 3875 34,000 communes were without any savings bank facilities whatever.
While differing in details in the various coun tries, the general features of the system are the same. Deposits may be made by any person at any post-office. Depositors are provided with pass-books in which the amount of the deposit is entered by the local office, and within a few days an official receipt is mailed to the depositor from the general office. In rural communities carriers are allowed to receive deposits. To en courage employees to extend the system, Holland, Finland, and Russia allow local officials commis sions upon pass-books issued and deposits en tered. Most countries provide for a minimum and maximum deposit. The minimum is usually about 20 cents, but a card is issued upon which stamps may be affixed until they amount to that sum, when the card is taken by the bank and the deposit is credited. This device has been found especially adapted for use in schools. In
England and France the fund representing the aggregate deposits is invested in Government bonds. In other countries a wider latitude of in vestment is permitted, such as municipal and corporation bonds, real estate mortgages, and even personal security. The deposit is in all eases guaranteed by the Government. Interest on deposits is computed annually, the usual rate being 3 per cent. The maximum deposit is £200 in England and 1000 lire in Italy. If this sum be exceeded no interest is allowed on the ex cess. Withdrawals. like deposits, may he made from any post-office. A delay of a few days is usually necessary for withdrawal. though a system of withdrawal by telegraph has been pro vided.
Postal savings banks usually serve two other functions besides receiving deposits. These are: (1) the providing of annuities and the writing of life insurance: (2) serving their customers as agents in purchasing Government securities. Aus tria and Hungary have gone a step further and provided for accounts subject to check.
In England 18.43 per cent. of the total num ber of depositors are artisans: S.14 per cent. tradesmen and assistants; 8.61 per cent. domestic servants; 50.41 per cent. married women, widows, spinsters, and children. In Austria more than half the depositors are under twenty years of age. Details of the various systems are shown in the following table: Consult; Wanamaker. Postal Savings Banks (Washington, 1891) States Department, Annual Report (Washington, 1S92) ; Hamilton. Savings and Sayings Institutions(New York, 1902).