The Birth of Postal Savings: The Formation of the Personal Small Savings Collection System

This chapter shows how Postal savings prevailed in modern Japan. Postal savings were established before the spread of the modern banking system and emerged as the de facto first modern deposit-taking institution for personal savings in the Japanese economy, ahead of all other financial institutions. However, postal savings did not fare well immediately after their establishment. Though the habit of making personal petty savings at modern financial institutions had yet to take firm root among Japanese people, the government went ahead and expanded the economic functions of individual savings. Following the broadening of the government’s policy for individual savings, the central government’s savings promotion policy launched at the end of the 19th century continued as part of local community improvement movement. Postal savings, as previous research has indicated, were heavily influenced by government policy, especially its efforts to promote savings. However, the popularization of postal savings in the early 20th century was also impacted greatly by the formation of various local organizations by local people themselves and their active participation in the communities.