The daily Alaskan., 1910-03-07
rHE POSTAL SAVINGS BANKS
 BILL.

Alter a hard fight the Carter pos taI savings banks bill passed the Sen ate Saturday by a close vote and will now go before the House. In-as- much as most of the opposition to tn measure was among certain Senators l seems safe to predict that the bill wm pass the House and become a law. ss President Taft fayors it and will Interpose no veto. The bill, if passed. will become effective three months from the date of its passage.
 Briefly. the Carter postal savings banks bill provides a system Of say inEs Repositories to be established in connection with all postottices of the first. second and third class in every state and territory of the United States in which sums of not less than sl and not more than $500 can be de posted. Interest at the rate of 9 per cent per annum will be paid upon all deposits. Any one over ten years Of age can make deposits and the de pOsit made by a wife in her own name is not subject to her husbands control None of the accounts are subject Co check drawing. Not more than SIOO can be deposited during ara calendar month The system shall be under the direction of board of supervisors consisting Of the Post. Master General. the Attorney Gener- al and the Secretary of the Treasury Of the United States.
 All funds received by the postal repositories shall be deposited in any solvent bank subject to public nspec- don and supervision and as nearly as practicable in the immediate vicinity ot ,he postoffice where the funds are received. These banks shall give an indemnity bond 10 cover such deposits and shall pay interest on the same at the rate of 21-4 per cent per an- mum. The board of supervisors must at all times maintain a reserve fund ,u the treasury of the United States amounting to 10 per cent of all the postal deposits.
 The buI Is designed to encourage thrift among the working classes and to guarantee an absolutely safe de pository to people Of small means who hack confidence in ordinary banks and who personally hoard their surplus earnings rather than to en- trust them into the hands of private banks. This practice is particularly prevalent among people of foreign extraction and many of these people now resort to the use Of money ord CTS made out to themselves as a meth od Of safe guarding their funds.
 As there are no less than 5l.oOO posr offices in the United States that MI become Repositories under the Carter bm 1t is believed that the act win result tn putting in circulation millions of dollars that are now hoard ed and kept out of circulation. It is believed that the money thus put in circulation will so far towards reliev- ing the country in times Of financial stringency.
 The chief objections to the bill are that it will interfere with private banking business and is a menace to the financial fabric of the country; that it verges toward paternalism: and that the system will become so cumbersome as to seriously interfere with the other business Of the postal department.
 Another objection urged by Senator Hepburn Of Idaho. who was the lead. CT Of the opposition to the bill, was that the funds accumulated by the postal Repositories are turned over To the banks at a low rate of inter, est and that the board of supervisors have too much latitude in the placing