102 
POSTAL SAVINGS 
The amount of interest of which these regula 
tions deprive depositors every year is large. 
Take the year 1916 for example. The fiscal year 
began with a balance to the credit of depositors 
of $65,684,708 and ended with $86,019,885. The 
mean deposit balance was therefore $75,852,296. 
At 2 per cent per annum the interest on this sum 
would have been $1,517,046. As a matter of fact, 
the interest “allowed and entered to the credit of 
depositors” was but $964,187, or 1.27 per cent on 
the mean annual balance. 
On the other hand, aside from the 5 per cent 
reserve kept with the Treasurer of the United 
States, the Government deposited practically 48 
all of its postal savings funds in banks at interest 
at the rate of 2J per cent per annum on average - 
daily balances. The interest received on these 
bank deposits for 1916 was $1,764,368. Adding 
to this the $34,966 received on the 2J per cent 
but as yet undue interest unless he decides to transfer his 
account to his new place of residence. The Department has 
recognized, however, that this procedure is sometimes incon 
venient, and plans for the transfer of accounts have from 
time to time been under consideration. The matter is one 
which seriously affects our present methods of accounting. 
It is believed that a solution of the problem will soon be 
reached provided it is deemed advisable, in view of all the 
circumstances, to adopt a plan for the transfer of accounts.” 
48 A small amount was invested in 2y 2 per cent postal 
savings bonds, but the entire income of these bond invest 
ments for the year 1916 was only $34,966.