Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1910-11-17
POSTAL BANKS
STRIKE A SNAC.
Trouble Between P0StOttiCe and
Treasury Departments.
FIGHT ON CERTIFICATE PLAN.


and Then Only Experimental Ones
Objections Raised to Hitchcock's
Ideas.
1t develops upon investigation that
most important features for the opera
ton of the postal savings bank sys-
tenn remain to be settled by the board
of trustees. 1t probably will not be
before Jan. l. 1911, that the govern
nent will be ready to give the system
its first trial in the limited number OF
second class Ottices-one i'll each state
where Repositories are to be estab-
lishcd for this trial.
Owing to conflicting statements from
official quarters there has been some
misunderstanding Of the situation af-
fecting the starting Of operations. 1t
seems that, after all. the certificate Of
deposit scheme which has attracted
so much attention has not been finally
approved.
While Secretary Of the Treasury
MacVeagh is understood to favor the
certificate of deposit plan Of Postmas-
ter General Hitchcock's conception II
it be found feasible after further in
yestigation, subordinate officials Of the
treasury department are holding out
for the old fashioned pass book. At
least they hold that there are radical
features of the new idea which re-
ouire careful consideration before the
official formal stamp Of approval Is
placed upon it. These treasury skep-
tics are keeping the subject alive.
The principal objections raised to the
certificate plan are four in number.
The points involved are as to the con-
sistency with the provisions Of the
postal bank law itself, the liability to
loss Of certificates in cases where de-
positors become possessed Of large
number Of them, the tendency on the
part of some of the depositors to cash
certificates even when necessity does
not compel it, owing to the ease Of
converting them into money, and the
interest computing complications which
might deprive dcpositors of their just
returns. To start with. the first OBJ
lection raised by the treasury experts
is this:
The law provides that no person
shall have an account at more than
one postoffice. that no person shall de-
posit more than $500 in single month
and that he shall not have total de-
post of more than $500. 1t is argued
that under the postoftice system as it
stands at present it would be hard to
keep check on the person who sought
to establish more than one account.
He might buy certificate at one office
and later buy one at nearby office.
The second objection is that de-
positor would in time accumulate a
large bunch of certificates Of small
denomina ton; some of them he might
carry around with him; losses would
be frequent, and the making good of
these losses through the issuance of
duplicates would be cumbersome.
The most important objection, it is
declared, is the third on the list. 1t
is pointed out that one Of the main
purposes of the postal savings banks
ing classes, who ordinarily do not pat
ronize private banks. The case is cit
ed Of the man who carries some Of
the certificates in his pocket, where
as pass books are usually kept at
home except when deposits are made.
Many times, it is declared, a deposit
tor would be tempted to drop in at the
postofice after working hours and
cash one of his certificates for no 9TH
er purpose perhaps than to buy cigars
or drinks when he would not think
of drawing out money if the conven-
lent equivalents were not burning
holes in his pockets.
Finally there is the matter Of inter
est. The existing scheme provides for
the issuance of certificates Of various
denomination. from one dollar up, the
smaller being convertible into one of
the larger denomination. But, it is
pointed out. each certificate shows its
own accrued interest. When several
VI SuluIl WcAc cASuduSCu
for one Of larger denomination the in
terest would date only from the issu-
ance of the latter. A fifty dollar GER
tificate, for instance, it Is stated by
way Of example, could not very we'll
be marked to show just how long in
terest had run on each dollar or FIVE
dollars of the aggregate.
Then, again, the depositor with $50
or 500 or $500 certificate, If he wished
to draw only part of his deposit, must
take out new certificate, thus losing
back interest on the balance.
That there is good deal Of feeling
between officials Of the postofice and
treasury departments respectively over
the situation cannot be denied. At the
postofice department it is declared
that If there is unreasonable delay in
putting the postal saving system in
operation the fault will lie with the
treasury officials. who waited until
all the preliminary plans had been
mapped out by the committee desig-
mated by Postmaster General Hitch
cock before showing any interest.
On the other side it Is limited that