The Birmingham age-herald., 1909-11-28
POSTAL SAVINGS
 BANK SYSTEM VIII Be Urged In President
 Taft's Message CENTRAL BANK IDEA The Proposed Plan of the President and Postmaster General Wll
 Have Opposition in the
 Republican Party.
CENTRAL BANK IDEA
BY RopERIcK CLIFFORD.

fA his message to Congress President Taft will strongly urge the enactment of legislation authorizing a postals savings bank system, and Postmaster General Hitchcock, in his forthcoming annual re- port. it is said. will devote considerable space to this subject which was indorsed in the Republican national platform.
 During the extra session a number of bills were introduced in the house to es- tablish postal savings bank and to pro- vide for the conduct and regulation of the same. They were referred to the committee on postoffices and post-roads. There is very little difference in the phraseology Of the several bills, and 1t is believed that one of them will be fav- orably reported to the house early in the session. It will be known as an adminis- tration measure, as 1t will have the in dorsement of President Taft and the Postmaster General.
 Such a bill will not have smooth sail ing, however, for the reason that within the last few days the advocates of a central bank of issue, such as proposed by Senator Aldrich, have put forth the claim that a postal savings bank would necessarily be a part of central bank of issue and, therefore, both measures should be considered in conjunction with each other
 It is generally believed that the mone- tary commission. which is now incubating on a national bank of issues in connection with revision of our currency laws, will
 fv, time to be considered and enacted into law at the coming session of Congress. The friends of the postal savings bank say that it would be unwise to delay ac- ton on a bill of this character, which has been indorsed by the President and which the people expect to become law this session: for to do so might imperil re- publican success in the congressional elections next year.
 A Central Bank.
 Each of the bills to establish postal savings bank system provides that there shall be established, at the seat of gov ernment, as a branch of the postofice de- partment, a chief office, to be known as the Central Bank" The Postmaster General is authorized to designate such money order postoffces, as he may se- lect for that purpose, as branch postal savings banks to receive small deposits and pay the same, subject to regulations made by him in conformity with the pro- visions of the act.
 The members of the House, who have been pressing a postal savings bank law for number of years, say that the main object of the bill is to inculcate the prin- ciples of saving among the people, and that as every one has faith in the nation al government, there is reason to believe that the inducement to save money would appeal to that class of people who hide their small change in old stockings or out of the way places in their homes.
 The bills that have been introduced have been carefully drawn and show that the postal savings bank Is not to be looked upon as a rival of the national banks. Any person may become a depos- itor, but no deposit shall be received for a less amount than one dollar and no deposits of any one individual shall eeed three hundred dollars in any one year When the amount of deposits, standing to the credit of a depositor, ex- ceeds one thousand dollars, no interest shall accrue on the sum in excess of that amount. Holders of trust funds may de- posit the same as trustees.
 Saving Stamps.
 As an incentive for saving small change the Postmaster General will sell, at branch postal savings banks, saving stamps of the denomination of five and ten cents. A card will be furnished to the purchaser to which the stamps will be af fixed. When the stamps amount to one dollar they will be received as deposits for that amount Ordinary postage stamps will not be received.
 One provision of the act provides that deposits. or any part thereof, may be paid on demand In accordance with the rules to be prescribed by the Postmaster General. The government will pay two per cent interest, which shall begin the first day of the calendar month following the date of deposit. and shall cease on the last day of the calendar month preceding the day of withdrawal
 The Postmaster General has authority to deposit the funds of the postal sav- ings bank with the treasurer of the United States or with a national bank, des- ignated as a depository of public morf- eys, or with post offices of the first and second class holding enough money in re- serve, however, to pay withdrawals and meet current expenses.
 The Secretary of the Treasury is charged with the duty of investing the funds of the postal savings bank in inter est-bearing bonds of the United States, or in bonds guaranteed by the United States. ss hen United States bonds cannot be obtained he may invest the funds in State bonds. bonds of municipalities and counties in the United States, such bonds being guaranteed by the state. In this connection 1t is provided that the amount invested in state bonds, etc., shall not exceed twice the amount of deposit stand ing to the credit of depositors in that state.
 One feature that will appeal to depos- ftors is that the deposits shall not be lia- ble to demand, seizure or detention under any legal process against the deposftor; nor shall any money deposited be sub Sject to taxation by the United States or by any state The Postmaster General is required to make monthly reports show ing the total amount of deposits, the re- ports to be published. He must make an annual report to Congress on the first day of each regular session
 It is perhaps needless to say that a pos- tai savings bank bill would give the Post master General and the Secretary of the Treasury large amount of additional political patronage
 Ex-Sultan Still DistrustfuI.
 Constantinople, November 27.-Ex- Sultan