102

POSTAL  SAVINGS

The  amount  of  interest  of  which  these  regulations ­
  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  inconvenient, ­
  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  investments ­
  for  the  year  1916  was  only  $34,966.