Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1906-07-28

Postal Savings Bank to be
Given a Test In Phil
ippines.

partment, a copy iof the act adopted by
which provides for the establishment
of postal savings bank in the Philip
pines, says u Washington correspondent
of the Philadelphia Public Ledger. By
it's provisions there is created the postal
savings bank division of the bureau of
posts, under the direction of the depart
meAt of commerce and police. which is
to be under the immediate charge of an
officer who will be required TO give
bond in such amount as may be fixed
by the insular auditor and with sureties
approved by him.
Postal savings banks are to be imme-
diately establishes in the principal
cities. Manila, Hobo and Cebu, and in
the other cities, towns and villages as
rapidly as possible. These banks are di-
vided into three glasses, first, second
and third respectively, and provision is
made whereby any person or society
having u deposit account with the Pos
tai Savings bank is permitted to make
deposits to the credit of 0r withdraw
ais from said account at any postal
savings bank in the Philippines. Banks
of the first class may receive deposits
and permit Withdrawals of any amount,
subject to the provisions of the enabling
act. A Limitation is placed on the
amounts which may be deposited in or
withdrawn from those of the second
and third classes at any time and ON
the aggregate deposits which may be
ad i'm coil ~ ,n
credit of any one account.
Savings banks of the third class may
receive deposits only in the form of
postal savings bank stamps, while
those of the first and second classes
may receive both currency and stamps
on deposit The maximum of deposits,
credits and Withdrawals provided for
are doubled in the case of charitable
and benevolent societies. The postal
savings bank stamps referred to are
TO be on sale at all postal savings
banks in denominations of five, ten and
twenty centavos respectively, for the
purpose of facilitating deposits of
small savings and extending the privi-
leges of the postal savings banks to the
smaller communities.
Any person purchasing these stamps
VIII be furnished. without charge APP
prOpriate cards, arranged with ten or
twenty spaces. each bearing Il diStinc
tive number and of three different col
ors, arranged for the three denomina-
lions of stamps which are to be pasted
on them. These stamp cards on being
filed with stamps may be deposited
l. ia
ippines as if they We're money of the
amount represented by the face value
of the stamps All such stamps receiv-
ed for deposit are to be cancelled at the
time the deposit entry is made TO the
depoStor's credit, ana when uncancel-
ed they may be redeemed at face value
in postage stamps. All employees of
the bank and all those intrusted With
the handling or custody of these
stamps, whether Cancelled or not, are
held responsible for them in the same
manner. and to the same extent as if
they were insular money of equal
value.
Any person six years of age or over
residing in the Philippines and not I'M
der legal disability may open an ac-
count to his own credit.
Any charitable or benevolent society
in the Philippines may open and main
tain an account in the postal savings
bank with the approval in writing OF
the director of posts, but no person or
society may have more than one ac-
count to his or it's credit in his or its
own name under the penalty of forfeit
ing under due process of law % per
cent of all deposits so held contrary to
law. A deposit book will be furnished
each depositOr free into which all cred
its must be entered for deposits made
and interest accrued.
Interest at 213 per cent per annum
will be allowed on all deposits until
practical experience shall demonstrate
that higher rate can be safely guar
nnteed. Money to the credit of any
depositor in excess of 1000 pesos shall
not bear interest except in the case of
and benevolent institutions,
when the maximum will be 1000 pesos.
Should the earnings of any fiscal
year exceed the amount necessary for
the payment of interest and the ex-
penses of administration the surplus is
TO be set aside as Il postal savings re-
serve fund, which will be invested and
permitted to accumulate until 1t shall
equal per cent of interest bearing de-
posits, and any net earnings in addi-
ton to the amount necessary to estab-
lish and maintain this reserve fund is to
be used for the purpose of increasing
the rate of interest payable on deposits.
All the postal savings bank funds and
all proceeds therefrom are to be kept
IN a separate trust fund by the insular
treasurer, and the investment of the
same will be in charge of postal saw
ngs bank investment board to be COM
posed of the secretary of commerce and
police, the secretary of finance and JUS
lice, the director of posts, the insular
treasurer and business man to be APP
pointed by the governor general.
Deposits in the postal savings bank
w.:l not be subject to taxation by the