98 POSTAL SAVINGS 
credit amounts to $1,000. The effect of the 
liberalizing legislation was an immediate and 
pronounced increase in postal savings deposits. 
As the advantages of the new law become known 
the accumulated hidden savings of the country 
flow to the postal banks and are there restored 
to the circulating medium.” 43 In its annual re 
port dated December 1,1916, the Board of Trus 
tees uses almost the same language. Both re 
ports strangely ignore the question of receiving 
non-interest bearing deposits. 
Growth of Deposits 
Since the inauguration of the postal savings 
system on January 3, 1911, the growth of de 
posits has been continuous, and this growth (as 
just noted) has recently been stimulated by the 
íaising of the limitations and by conditions 
created by the European War. Laborers in the 
United States have been very prosperous during 
the past two and a half years, and the situation in 
Europe has not been favorable to the sending of 
money across the water for safe keeping. The 
following figures show the balances on deposit in 
the postal savings banks at the end of each fiscal 
year since the system was inaugurated. 
43 Ann. Rep. 3 Assist. Postmast.-Gen., 19i6, p. 7,