Waterbury evening Democrat., 1905-12-23

Illinois Representatives. Btu Pro-
 vides For Central Bank as a Branch
 of Postofice Department-Martin B
 Madden Says Funds Created by This
 Measure May Be Used Nm Part to
 Build Panama Canal.
 Representative Howard M. Snapp oi Illinois has introduced bill in the house to establish a postal savings bank system, says Leroy T. Vernon the Washington correspondent of the Chicago News. The measure will be pressed for passage at this session In effect the bill provides for the es tablishment under the postmaster gen eral of bank for the benefit of small depositors-a savings bank, in other words, such as is not now contemplat ed or covered by the laws under which national banks are operated.
 Representative Martin B. Madden ot Chicago, who is deeply interested in the measure and will assist his col league in an attempt to pass it, sees still another good point in the bill t'Why should not the $500, 100000 which will be needed to build the Panama canal-I use those figures advisedly, for believe that is what the canal will finally cost-come from money which would be invested in postal savings banks and later converted into govern ment bonds? All of the people will then become interested in a national enterprise which is now bound to be financed, if financed at all, by Wall street.
 The preamble to MT. Snapp's bill states that the postal savings bank is to be established flor the protection of small savings with the pledge of the national government for the due pay ment of the same" A central bank as a branch of the postoffice department is to be established under the super vision of the postmaster general, and such money order postoffices as he may see 1t are to be designated branch pos tai savings banks, to receive small de posits and repay the same, and all mon eys passing through the bank in the form of deposits are to be deemed pub lie moneys in the treasury of the Unit ed States.
 Any person may become a depositor under the provisions of the act. Mar ried women may make deposits and control them; trustees may deposit trust funds. One dollar is the least amount that may be deposited, and only multiples of a dollar are received above that amount. Not over $500 shall be deposited by any one depositor with in one year, and any deposit exceeding S1,000 shall cease to draw interest above that amount.
 Every deposit received by a post master shall be duly entered in the de- which shall be further attested by the stamp of his ofice The postmaster general shall also be notified of the amount and shall make acknowledg- ment to the depositor through an of ficer designated by him within twenty days, and 1t is made the duty of the de- positor to notify the postmaster general If he fails to receive such acknowiedg- ment.
 Stamps to be known as postal sav- ings stamps" in denominations of Q. and 10 cents, shall be kept for sale in the branch banks, which shall be af- fixed to cards in the depositor's posses sion, and when stamps have been so affixed to the cards to the amount of S1 they shall be received as a deposit in the bank for that amount. Ordinary postal stamps may not be used for this purpose.
 Upon demand of depositor or duly authorized person the postmaster gen. eral shall issue an order for the repay ment of an account on deposit, which shall be met with the least possible de- lay by the postOfice Interest shall be paid on all deposits up to $1,000 at 2 per cent per annum, which interest shall begin on the first day of the cal endar month following the deposit and cease on the last day of the calendar month preceding the withdrawal Ac- crued interest shall be added to the principal on June 30 each year.
 No money deposited in a postal bank shall be liable by legal process against the depositor; deposits and passbooks shall not be transferable. and money deposited under the act shall not be subject to taxation by the United States or by any state. The postmaster general may require an additional bond of any postmaster whose office Is made a branch postal bank, and no officer shall divulgc any of the secrets con cerning deposits.
 For the administration of the bank the postmaster general and secretary of the treasury shall designate such of- ficials as are necessary. If the busi- ness shall require it, general superins tendent of the postal savings bank may be appointed at a salary equal to the salary of the superintendent of the money order business. which Is now S3.5O0. and the secretary of the treas ury may appoint an additional auditor The sum of S25.0O0 is asked to operate the bank for the first fiscal year.