The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-10-06
POSTAL SAVINGS BANKS
ITO Be STARTED VERY SOON

WASHINGTON, Sept 21.-Postal
Savings banks will be in operation
throughout the United States within
six or eight weeks This is the expec-
tation of officials of the postoffice de-
partment VINO nave been at work
perfecting methods for carrying out
the congressional act authorizing the
establishment of such institutions.
Congress only laid the groundwork
for postal savings banks. 1t remained
for the board of trustees authorized
in the act-the ostmaster-generaT,
the secretary of the treasury and the
attorney general-to work out the de-
tails.
So carefully have the details of the
organization of postal savings banks
been worked out that it is expected
that the report of the special commit
tee will be adopted promptly, and
that postal savings banks will be es-
tablished in at least so cities.
The plan is to have at least one
postal savings bank in each state.
1t is the impression here that not
all the banks will be located in the
postoftices in the largest cities, but
that a preference will be given in
most states to cities having a popula-
ton in the neighborhood of 100000,
In designating these cities, howev-
err, the board of trustees will be gov.
erned by the demand for them, as dis
closed by letters reaching the post.
office department.
The records show that the demand
for these banks is much greater in
the middle West than in the East or
the South. Up to Sept 20 the postmas-
tiers in 64S towns and cities had ap-
piled to have their offices designat-
ed as postal savings banks. Of this
number Ohio led with SO, and Mime
sofa and Pennsylvania tied for sec
ond honors with 4S.
AS a matter of fact, many of the
postmasters have Informed the Te-
partment that the people in their To-
calities are already depositing money
with the federal government in anti
cipation of the establishment of pos
tai banks These future depositors
= nave bought money orders payable to
themselves, and will cash them when
the government banks are in opera
ton and deposit the funds with I'm
Gle Sam and draw the per cent in
terest allowed by the act.
One postmaster reported to the
postmaster general that he had ISSUED
orders for an aggregate of $4,000 t.
persons who wanted to deposit theil
money in a postal savings bank anC
, believed they could do so.
Children from 10 years of age
may become patrons of the posta
savings banks in their own names, ac
cording to the provisions of the law
The lowest amount that can be de
posted is a dollar, and it is not pre-
sumed that all the youngsters will
amass such a sum in a hurry. So fol
their convenience cards valued at a.
low as ten cents will be issued through
the postofice department.
When any child has ten of the dime
cards, he or she can go to the pos
tai savings bank, open an account and
get a certificate of deposit just the
same as an adult. Married women can
make deposits in the postal savings
bank which cannot be touched by
their husbands. That also is a part
of the law.
There will be no trouble, either, in
withdrawing money from the postal
savings banks. Just how the withdraw
al may be effected, whether by check
or merely by surrender of the certi-
ficate of deposit, or by memorandum
on the certificate if only portion Of
the deposit is taken out, has not been
settled definitely. But the law pro-
vides that money shall be returned
to the depostor, with interest, on de-
mand.
No depositor may open more than
one account at the same time. Nei
Their can he or she deposit more thar
500 in any one month, and the max
imum amount that can be placed in :
postal savings bank by one person Is
$500. When the maximum is reached
the depositor may withdraw it and in.
vest it in a government bond, pro,
vided for in the law, which will rur
from one to twenty years, and viii
bear interest at the rate of IL pei
cent. This is gain of 12 per cen
for the depositor as he will receive
2 per cent interest while his money
is in a postal savings bank.