104 
POSTAL SAVINGS 
year; and of the 18 per cent that still remains, 48 
per cent is withdrawn within the third year, leav 
ing approximately only 9 per cent of the deposits 
in the custody of the Government at the end of 
the third year.” 50 
As a matter of fact the interest rate paid is so 
low that it makes a very weak appeal to the class 
of people who deposit in the postal savings banks. 
Their motive is primarily security. The Govern 
ment is now realizing large profits from the postal 
savings system 51 —for 1916 the estimated profit 
was $481,816 52 —and this profit is coming from a 
class of people in the community, the thrifty poor, 
from whom it is bad social policy to take it. Of 
course it would be administratively impracticable 
to pay interest to depositors on average daily 
balances—no savings banks do that. Would it 
be expecting too much, however, to ask for our 
postal savings depositors the allowances of inter 
est on half yearly or even quarterly balances? 
Moreover, is it unreasonable to ask the Board 
of Trustees, in view of the nomadic character of 
our foreign born population which patronizes 
60 U. S. Post. Savs. Sys., 1916, p. 5. 
61 The first two years the system was run at an esti 
mated loss of $1,000,000. Since that time every year has 
witnessed a substantial net profit to the Government. 
52 Board of Trustees, Ann. Rep. Post. Savs. Sys., 1916, 
(House Doc. No. 1433, 64 Cong., 2 Sess.), p. 61.