The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1910-12-30
UNCLE SAM TO START
BANKS ON JANUARY |.
THEY WILL BE OPERATED WITH
THE POSTAL SERVICE.
1t Is Fruition of Forty Years of Aei-
tation; Rules Governing DEPOSIT.
tors; System Has Been in Vogue
in England and II Works Like
Charm; People Are Encouraged
to Save.

Washington, d. c., December 2S.-
Uncle Sam will embark in the bank
ing business on New Years day. 1t
is the fruition of forty years agi.
tation, ..'e.
At present in the United States,
according to the official statistics
of the office of the controller of the
currency, there are 1,703 savings
banks, an average of one bank for
approximately every $1,000 inhabi.
tants. In the great postal system
of the United States there are nearly
$4,000 offices of all sorts and classes.
1t appealed to the public that in
these postoffices, large and small, lay
the opportunity for the creation of
system of banks of savings deposits
for the millions of wage earners.
Out of the act of congress the
trainers of the rules gathered much
that is of direct interest to the fu-
ture depositors in the great concern.
These are a few of the features
which the new bank will possess.
Is Federal institution.
First and most important of all for
the depositor to remember is the
fact that the postal savings bank
is a federal institution. 1t is not
governed by state banking laws, and
moreover depositors in the postal
savings bank place their money
there subject to the law which Gre
ated the postal savings bank and free
from the restrictions as to property
rights as confined by the vast va
riety of state laws governing the
rights of minors, married women, par
ents, guardians and others.
Under the act accounts may be
opened and deposits made by any
person of the age of ten years or
more in his or her own name. This
money so deposited is free from the
interference as to disposition by par
ent, guardian, or creditor.
A married woman may deposit
money in her own name and keep
it safe and sound in the bank with
out reference to the wishes or the
demands of her husband.
All that the postal savings law de-
mands is that the deposition does not
4 open more than one account in his
own right. The postal savings bank
will issue certificates of deposit in.
stead of pass books.
1t requires 81 to open postal
savings account. This 81 will bear
2 per cent interest per annum. This
interest is credited but once each
year. AS is a general rule, fractional
parts of dollar will not draw inter.
est. This feature is true of all saw
ings institutions. t,i.g.
Has Been Tried in England.
The system has been working in
England for more than half cen
fury, and has proved to be of bene
fit to the regular banks.
AS has been said before, the de-
posits in the postal savings bank
must be made in sums of 81 or in
multiples of 81. Nevertheless the
saver of pennies and dimes will not
be neglected. To the depositor who
wishes to lay by the pennies, the
nickels, and the dimes provision is
made by the issuance of stamps
: which may be purchased at any post
office bank after the system becomes
operative, and these stamps will be
in practically all fractions of a dol
lar.
Behind the certificate of deposi,
will stand the projected postal saw
ings bond. These bonds are planned
to be the ultimate resort of the pos
tai savings depositor They will be
issued in denominations of $40, $40
$50, $50 and 500, and will bear
per cent interest, as do the certifi
Gates of deposit.
The first postal banks to be opened
for deposits on January 8 are forty
eight in number. There will be one
in every state and territory of the
union.