Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-01-22
POSTAL SAVINGS BANR BILL
oOngr,ssns, Kennedy Proposes to Intro
duOs System Grsdually.
GIVES STATES OPTION TO ADOPT
New Feature of Measure introduced
by omaha's Representative That
Promises to Assist IL.
Passage.
From a stan CONVERSATIONAL

oluers In some important particulars from
the snapp and Dickson bills introduced dur
ing the present session The other bills are
much alike, but Mr.. Kennedy's bill makes
the establishment and operation Of postal
savings banks in any particular state de-
pend upon the action Of the legislature OF
that state. In other words. the states may
have the system not, just they please.
This idea is entirely new. No savings bank
bill heretofore introduced has had that fea-
ture. 1t is intended to minimize opposition
TO the measure. The establishment of pos
tai savings banks is opposed by such states
as NewYork. Massachusetts and other New
England states having strong. stable saw
tngs banks. Speaking generally. the west
wants postal savings banks. while the east
does not. 1t is hoped that the eastern states
may withdraw their opposition TO the Ken
nedy bill, because IL will not AFFECT them
without their consent Then. again. the
provision referred to may allay some op-
position from the southern states, which
insist upon state rights.
Another objection usually made to postal
savings banks is that the financial condi-
tons OF the country would be disturbed by
their establishment. This bill contemplates
their gradual establishment as the states
declare for them so that deposits would not
| accumulate more rapidly than provision
could be made for their use.
Another feature OF the bill is that the sur
plus funds not invested shall be distributed
equitably among the states from which the
deposits come. This would obviste an OBJ
lection heretofore made in the west that
the system would centralize the surplus
funds in the east
( The measure, which is entitled "A bill
to provide for the gradual establishment
Of a postal savings bank system in the
United States and to regulate the same"
reads follows:
BE it enacted by the senate and house
/ America assembled, That a system Of
postal savings banks shall be established
in the United States under the direction
/ IN conformity TO the provisions of this
Postofices Designated.
| Sec. ?. That all postoffices in the United
States of the first. second and third classes.
and such others as may be selected by the
clared TO be postal savings hanks villain
/ the meaning of this act.
what Deposits May BE Made
Sec. , That in the postal savings banks
SO designated deposits may be maze TO
bear interest at the rates hereinafter spec
! ihed, and for such deposits and the repay
ment thereof, the government Of the United
states snail be responsible; provided how
ever that the deposits OF no person shall
June 30
Rates of Interest.
| Sec. l. That interest shall be computed
| and paid on the deposits of Individual de-
/ positors at the following rates: On the
nrst s'vo; per cent per annun' on tne
per anum; on the excess over SoV0 up To
>l,OG, per cent per annum. and on the
! excess over $1,000. no interest shall be paid.
\ Interest shall be computed semi-annuaiy
| on January ! and July / on all sums
| deposit during the entire six months pre-
I no n g.
positor. In computing Interest no account
| shall be taken OF any fraction OF a dollar.
| visions of this section by depositing his
| money in the name of some otner person
| to obtain a higher rate of interest. In
any and all such cases the postmaster gen
| eral may refuse to pay any interest on
| any deposit made by one person in the
/ name OF another. The postmaster general
| or any postmaster or other person receiv-
ing deposits may at any time require any
! deposiGor to make a written statement, de-
claring on oath or affirmation that any and
all moneys deposited in his name belong
| to him, and the refusal by the depositor
to make such statement shall De sunlclent
cause for refusing 10 pay such depositor
any interest whatever on his deposit.
Deposits 81 and MuItipIes Thereof
Sec. 5. That no deposit shall be made for
less than 81. and all deposits shall be 81 and
nultiples thereof.
Deposits May Be withdrawn.
Sec 6. That the deposits so made in said
! postal savings banks, with accrued interest
thereon. may be withdrawn al any time by
the depositor. reasonable notice being given
to tho postmaster or other person receiving
deposits
Deposit Books Furnished.
Sec. I maj bank books or books of de-
post shall be furnished the depositors in
! such form as the postmaster general may
prescribe, in which books all deposits and
accrued interest shall be entered. The post
master general shall also provide depositors
! with blank checks orders for the with
drawal of their deposits, in such form as he
who May Make Deposits.
Sec s. That deposits may be made by all
natural persons, by married women for
their own exclusive use, by minors, guard
ianE, trustees, executors. administrators and
persons acting in a representative capacity;
and all such deposits shall at all times be
| under the exclusive control Of and be with
drawn by such depositors, and the action Of
a minor in depositIng moneys in such banks.
and TithdrawIng the same, shall be as bind
ling and conclusive as If such minors were of
full legal age.
when Banks Open.
Sec. 9. That said postal savings banks
shall be open for business every day, Sun
days and legal holidays excepted. during
usual banking hours in the several cities
and towns, and at such other times as the
regard FOR the object Of the act and the
class Of depositors 10 be benefited thereby.
Amount of Deposits Not Disclosed.
Sec. 10. That no postmaster. or other per-
son receiving deposits, shall disclose TO any
of his or her deposit, unless directed 80 TO
DO by the postmaster general. Provided
however information may be given by post
masters to the parents OF minors Of the
amounts Of their deposits.
Not Liza Bile to Suit.
Sec. II. That neither the United States
government. nor the postmaster general
nor any postmaster or other person receiv-
ing deposits, shall be liable 10 any suit or
/ proceeding, or subject TO legal process OF
any kind or character. at the instance Of
| the creditor or creditors OF any depositor
Postmasters 10 Give Additional Bond
| Sec. l.. That the postmaster general shall
/ require from each postmaster receiving de-
/ posits an additional bond. in such form and
! amount and with such surety or sureties,
! as he may prescribe: conditioned. among
| other things, for the faithful performa nee
/ of the duties of the postmaster as custodian
! OF postal savings bank funds, and providing
that he shall promptly and fully account for
and pay over all such moneys deposited
with him.
How Funds Used Are Invested.
Sec. u That the postmaster general shall
I be and Is hereby, authorized 10 draw uDlu