The Havre herald., 1908-03-06
PLANS FOR ESTABLISH
ING POSTAL BANKS
How Bills of Carter and Hitch
cock Differ from Madden
Snapp Measure.
DISPOSITION OF THE FUNDS,
Democrat Provides for Board Of
Investment-Al1 Fix Deposit
Limit at $1,000.


Upon the Endorsement by Postmaster
General Meyer and later by President
Roosevelt Of the postal savings bank
system for the United States, three
separate and distinct plans have been
proposed to Congress as the proper pro
cedure for establishing and putting into
operation such banks. In the House
of Representatives Representatives
Madden, Of Chicago, and Snapp. of
Joliet, ILL.,, have introduced similar
measures Representative Hitchcock,
of Omaha, Democrat, has introduced
another House bill, and Senator Thorn
as Carter, Of Montana, is the father of
a senate bill. The main differences In
these bills lie in the protection afford
ed depositors and deposits and In the
investment features Of the funds Of the
postal savings banks.
All these bills place limit on the
interest-bearing deposits which can be
made by any individual within any sin
gle calendar year and finally. The
Madden -snapp bill provides that $500
1lII1 Uc uSJCSIlCA " lLI11Ll oAAC SSeAA SAAS
that no interest shall be paid to any
deposltor upon a deposit in excess OF
| $1,000. The Carter bill makes the lin.
it Of annual deposit $500 and the final
limit Of interest-bearing deposit $1,000
while the Hitchcock bill has a double
barreled provision which Is more com
| plex. 1t provides limit of monthly
| deposit Of S1OO and the final limit OF
| any single deposit at $1,000. In ad.
diton it provides that no interest shall
be paid on more than $500 to any de,
postor and that If any depositor de.
posit more than 5000 in any one yeal
interest shall not be paid on new de
posits In excess Of that amount
Both the Madden-Snapp and Garter
| bills provide an interest rate OF pei
| cent on deposits, while the Hitchcock
bill stipulates that the rate on 5000 o'
| less shall be PA per cent, and ove1
that amount and up to $500 the, rats
shall be fixed by board of investment
composed Of the Postmaster General
1 the Secretary Of the Treasury and th'
Comptroller of the Currency.
In establishing postal savings banl
adjuncts to post offices there is also 1
difference between the Madden-Snapl
bin and the others. The Madden-SnapI
measure gives the Postmaster Genera
| discretion In the selection of offices fo
postal savings bank purposes; th
Hitchcock bill Is mandatory In that al
money order post offices are mad
branches of the postal savings banl
system, while the Carter bill makes al
first, second and third-class post OF
fees branch postal savings banks ant
gives the Postmaster General some dis
cretion as to further extension int
the fourth-class post offices. -
In administration the Madden-Snapl
bill provides a general superintendent
of postal savings banks, with such as
sistants and clerks as may be neces
sary, while the Secretary Of the Treas
ury is authorized to increase the audit
or's force in the Post Office Department
The sum Of $4,000 is set aside to star
the banks in operation. Both thu
Hitchcock and Carter bills stipulat'
| that the head of the postal banks shal
be an officer known to the Fifth AS
sistant Postmaster General, and asl
100000 to establish the banks.