In 1875 (Meiji 8), the Japanese postal savings system was set up by Hisoka Maejima (前島密, 1835–1919) to let the poor accumalate the money saved through their frugality. It was based on the United Kingdom’s system created in 1861. Japan was one of the first countries to create a postal savings system and at the time it was one of the world’s most advanced financial institutions. By 1885 (Meiji 18) postal savings accounted for 4.8 percent of the entire Japanese banking system.
The government collected funds through post offices all over the nation and put them to work to enrich the nation and strenthen Japan’s military. After WWII, postal savings funded the country’s infrastructure and thereby the Japanese economic miracle. It was at one time called the world’s biggest bank.
Over the years, the system was continuously improved. Direct transfer services were added in 1906 (Meiji 39), and life insurance in 1916 (Taisho 5). In 1910 (Meiji 43), the Post Office even started distributing pension payments.
By 1900 (Meiji 33) postal offices offering saving services existed in all cities, towns and villages in Japan, some 10,000 of them. Even more than the far larger USA has ever maintained.
Postal savings growth in Japan through 1950 (Showa 25)
