New-York tribune., 1910-09-02
POSTAL BANK PROGRESS.

In its September bulletin the National
City Bank says:
The board Of experts appointed by the
Postmaster General to work out a system
OF administration for the new postal saw
ingS bank bank law has made satisfactory
progress. The plans proposed by the board
may be ready for submission TO the Pres-
dent and The members of the Cabinet by
the middle of September. It is contem-
plated putting the system into operation
about November |. The number of postal
banks must necessarily be limited mas
much as the appropriation made by Con-
eresS to cover all the expenses incident to
the installat ton of these banks was only
Sl00.op0. This will DO little more than cover
the expense for the preparation of blanks,
postofflces the system will be installed is
still probIematicaI But proba bly, no more
than one postofhce in each state viii
at first he designated Il is argued that
The system is an entirely new one in this
country, and that nothing short Of pTaC-
teal demonstration will bring 10 light any
board It may be decided however. after
consultation with the President and the
Cabinet and especially with the Postmas
ter General the Secretary Of the Treasury
an6 the Attorney General. who are ex-
Officio trustees, to increase the number of
postof1ces so as 10 include all of a par
Ticular class. possibly the third, but prob
ably the second class Offices There are
1929 of the last named in the United States.
Ihe plans, as worked out by the board OF
experts. are altogether tentative, as only
the trustees can give them official effect,
but il is likely that they viii be willing
to accept the ideas of the committee, mas
much as the whole matter has been given
the most painStaking consideration. The
board has examined systems used by the
other institutions and has evolved what in
the judgment Of the members is a com
bination OF the best features and methods
employed by these concerns This study
has convinced the board that the passbook
system is not feasible, owing TO the ease
with which amounts may be manipulated,
hoe
Gates OF deposit instead. The postal saw
ings bank act requires the Postmaster
General to furnish depositors with a pass
book, but provision is made that he may,
with the approval Of the board of trustees,
adopt a device or devices In lieu of a pass
book as the means OF making and preserv-
ing evidence of deposits and Withdrawals.
As contemplated by the law a card will
be issued to depositors in postal savings
tIon Of 10 cents may be fixed When nine
stamps have been attached to the card. the
card Itself counting one, the depositor will
be given therefor certificate with the
Gates are 10 be punched in duplicate in the
presence Of the depositOr, SO that a post
Office clerk would have little or no oppor-
tunity TO commit a fraud either against
the depoSitor the government When
SO have been punched in certificate II
NAV be turned in 70 the postotfice and
other for $40 issued in its place. These
nnal certificates are TO be issued in de-
nominations Of $40, $50 and $50 They will
withdrawn from the postofiice by any one
other than the person who made the de
post identification will be required In
every instance. When il was intimated
some little time ago that the board of eX-
perlS was contemplating recommending to
the board Of trustees the adoption OF a
certihcate system in place of the passbook
a good deal of public criticism was brought
forth But II Is said by postoffice officials
that the more the system is studied by the
officers Of savings banks ana other similar
institutions the greater its advantages ap-
pear to be, and the opinion IS expressed
that this new system may eventually be
adopted by savings banks.
The beard has also practically decided
that postal savings funds shall be with
drawn only from the office where the de-
posits were made. In Great Britain upon
proper Identification depositors are allowed
While that system may have advantages
il would involve large expenditure, and this
is regarded as more or less unnecessary II
is believed, therefore. that the system as
eventually approved will provide that funds
may be Withdrawn only from the Offices
where the deposits are made TIp to this
time applications from approximately six
hundred postmasters have been received at
the Postoffiee Department asking that their
savings banks. approximately two thou
sand banks have applied for designation as
dep0Sitories of postal funds. The question
as 10 what bank or banks in a community
shall be so designated is one that has not
vet received any considerations 1t is not
likely that the matter Will be taken up
until the trustees have their first meeting
which probably VIII De some time about
the middle of September.