The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1909-02-22
The Postal SAVINGS Bank.

The speaker said in the beginning
that he did not claim to possess any
technical knowledge of banks and
banking methods which would enable
him to distinguish all of the advant-
| ages or evils which might arise from
the establishment of the postal savings
bank, but that he would deal with the
subject fror, the viewpoint of the or
binary citizen. He said that it was
unfortunate that questions such as
tbs one, dealing with economics,
should ever come within the range of
politics, and that it was also unfor-
tunate that there had not been more
opportunity for calm judgment and
mature deliberation from which alone
such important legislation should
proceed.
| He then called attention to the prin-
cipal features of the Carter bill now
pending in congress which is the bill
that has been favorably reported, and
! is known as the administration meas
ure. The bill provides that all mon
| ey order postoffices shall become pos
| tails savings banks for the receipt Of
| deposits, and that the government will
pay two per cent interest upon the
amounts deposited therein. Any per.
son over the age Of ten years may be-
come depositor, and parents or
guardians may deposit for children
under ten years of age. An initial de-
post of one dollar is required. after
which deposits of any amount not less
than ten cents may be received. Not
more than $1,000 may be deposited.
and not more than 5000 in any one
month 1t is probable that the bill
will be amended to provide for an in
tial deposit of fifty cents, maximum
deposit of $500 and deposit OF not
more than 500 in any one month.
The money so placed in the postal
bank is to be deposited in tie nation
al bank nearest to to the postal bank
place of deposit and shall be a prior
! lien upon all of the assets of the
bank Such national banks shall pay
PA per cent upon the money II 1t is
accepted by them. The money re-
ceiyed shall become public funds, and
shall not be subject to taxation, nor to
| levy under any legal process. With
drawals may be upon written applica-
/ ton which shall tie forwarded 10
! Washington and receive the approval
of the postmaster general and the
payment is made upon his order
The friends of the measure claim
that it will encourage thrift and
economy The purpose is an entirely
worthy one and no one will object to
the measure on that account, if 1t APP
pears that the bill will really perform
| that service. 1t may be well to en-
auire whether you can encourage
thrift by providing safe place OF de-
post. 1t is the man who is already
! thrifty who is looking for safe place
to put his money. To encourage THRIFT
radical change must be accompl sn-
ed m the man himself. To change him
from a spender to a saver you must
do more than give him safe place
to put his money.
It is also claimed that the postal
banks will be beneficial in those
places where there are no banking
! facilities. There is no doubt some
merit in this claim, but it Will be
well to remember that the postal
banks are banks of deposit only They
perform none of the ordinary func-
lions of banking, such as carrying
checking accounts, discounting paper,
loaning money, selling exchange, etc.
They can also receive only actual
money on deposit, so that the man
even though he be remote from
bank. cannot deposit check or draft
but must by some means change |. to
money before the postal bank is OF any
use to him.
The friends of the measure say
that 1t will bring out of hiding money
which is now boarded in old stockings,
tin cans, or is buried the earth.