How The Postal Banking Service Was Initiated And Implemented Essay

1005 Words Apr 5th, 2016 null Page
The author’s main thesis of this article is to discuss how the postal banking service was initiated and implemented, how there was a connection between the postal banking service and the effects it had on the savings and loan industry, the financial banking system and the US economy. When discussing the savings and loan industry O’Hara and Easley discuss the inadvertent ramifications the postal banking service had on crippling the saving and loans industry. How the fixed rates were inflexible and how that effected the financial banking system; and when the depression hit, people began to use the postal service as a means of banking instead of using the big financial banking system.
In spite of this postal banking services having an unintentional negative effect of the US economy, I believe that it is important to discuss the pros and cons of this banking system. I will be agreeing on how the banks initially felt threated by the inception of the postal banking services, how the Savings and Loans industry lost profits due to this banking system and how the postal savings act had a detrimental effect on the banking reserves. I will be disagreeing with the idea that it was not the responsibility of the postal banking system to redesign its infrastructure due to the fact that the financial banking system could not compete with its rates or system.
US Postal banking service had been set up to help the “poor” community with their “petty” savings accounts. There were three main…

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