By Steven Schuster, Matthew Jaremski and Elisabeth Perlman, includes “In the early years of the program, and especially during times of financial crisis, depositors relied on postal savings for relatively short-term savings, suggesting that they used postal savings as a replacement for banks during spells of distress. … The Panic of 1873 re-framed the discussion … Creswell emphasized the safety of postal savings deposits, and offered the system as a solution to people hiding their money, instead of depositing in banks … The 1929 Crash and ensuing run on commercial banks coincided with a sudden rise in postal savings banks. Between 1930 and 1934, the amount on deposit increased by almost 700% …”
Read the full article on: Social Science Research Network