The great West. [volume] (St. Paul, Minn.) 1889-18??, 1892-03-18

Sec. q. That every post ONCE of the United
States, outside Of the cities and villages where
governments banks are established, shall be q
receiver OF deposits as follows: All post offices
of the first class shall receive deposits in sums
Of 81 900 or less; all post offices of the second
class shall receive deposits in sums Of 500 and
less; all post ofices of the third class shall re-
ce1ye deposits in sums of 800 or less; all post
offices OF the fourth class shall receive deposits
Of sums OF &10O or less. When such deposits are
made the postmaster shall give to the depositor
receipt for the amount deposited, and shall
Immediately forward by mail or express such
deposit to the nearest government bank, upon
the receipt OF which, the director OF said bank
shall return to the postmaster receipt for the
amount received; all deposits so made shall
draw interest from date of postmaster receipt,
subject to provisions Of section 10, of this act.
Every postmaster shall be responsible on his
bond to the United States for all deposits while
they remain in his hands
Sec. 2. That any citizen of the United States
may borrow money from any government bank
by giving ample security of personal property
real estate, the actual cash value of such Sc
curity to be not less than three times the
amount of the loan. The bank director shall be
judge of the suf1ciency OF all security offered
In estimating the cash value of any property
offered as security. in states where one-third is
the basis OF assessment such cash value shall
not be placed at more than three times the as
seSSed value OF the same; in states where one
half is the basis of assessment such cash value
shall not be placed at more than twice the as
sessed value, and in states where two-thirds is
the basis of assessment not more than ne-half
shall be added to the assessed value. Provided
that no more than So, 900 shall be loaned to any
one person.
Sec. %. That all loans made by the govern
ment banks throughout the United States shall
be at the uniform rate of four per cent. per
annum, provided, that when it is fully demon
strated that decrease in the rate of interest is
safe and practicable, the secretary of the treas
ury shall order uniform reduction in the rate
Of interest to be made. and such rate shall be
no higher than is sufficient to defray the ex-
penses Of the system; and provided further,
that all reductions in the rate of interest shall
apply to the unpaid portion of all loans made
before such reduction is ordered
Sec. "a. That loans may be made for any
period not less than three months nor greater
than twenty years. and no loans chattel Sc
curity shall be made for a greater period than
one year.
Sec. %. That interest on loans for period of
one year or more shall be due and payable an
nually
Sec. 26. That in case of loans made for more
than one year the borrower shall, in addition to
the interest, pay not less than five per cent. of
the principal at the end of each year, and shall
thereafter pay interest only on the amount Of
principal remaining unpaid; provided that the
borrower shall have the option of paying all the
debt or greater percentage than herein re-
Quired at any time.
Sec. q. That the chief of the bureau shall es-
tablish the necessary rules and safe guards under
which loans may be made in sums of ST 900 or
less to assist worthy citizens in the building Of
homes
Sec %. That whenever any borrower shall
fail to make the payments as required under
the provisions of this act it shall be the duty of
the bank director to proceed to collect the
amount by due process of law.
Sec. %. That after the passage of this act, no
bank shall be chartered under the present ma
tional bank law, and no charter CT any existing
national bank shall be extended.
Sec. 30. That all acts and parts Of acts in con-
fict with the provisions of this act be, and are
hereby repealed