jun 25, 1910 - Element 2 - The Postal Savings Act

Description:

OMAHA PLATFORM
Element: #2, Guarantee of safe deposit of money in banks
Location: Finance Platform, #5
Goal/Importance: Government established postal savings banks for safe deposit of people's earnings and to facilitate exchange

EVENT
People/Party: U.S. Federal Government
Location: Washington, D.C.
Impact: Creation of Postal Savings System

DETAILS
In 1871, Postmaster General Creswell recommended establishment of a postal savings bank to raise larges sums of revenue into circulation for stimulating economic growth, taking inspiration from Great Britain's system. The proposal was rejected due to fears of threatening private banks, but Postmaster John Wannamaker argued it was necessary as private banks didn't serve the needs of the common working man. Due to the Panic of 1907, the U.S. government was looking to re-establish trust in the financial sector after failure and customer avoidance of private banks. President Theodore Roosevelt supported the idea, but congress didn't act till William Taft's presidency. The Postal Savings Act was passed June 25, 1910 and served to provide a safe place for families to invest funds, encourage re-investment in the financial sector, make bank services available to rural individuals, and stated that all deposits would be backed and guaranteed through the full faith and credit of the United States.

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