The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1910-08-01
New Savings system VIII be In oper-
alton Throughout the Country
Within Three
Months.
Pass Book Question Is Giving the De-
partment Some Worry in
Making the Arrange
rnents.

WASHINGTON Aug. by Oct. Is
at the earliest, or by Nov. at the
latest the postal savings bank system
will be put in operation throughout the
country If present plans are carried
out the new banks will not be intro
duced at the outset In cities OF the
first class. The departmental
committee which Is now perfecttng an
organization will recommend that the
banks be tried at first IN pastoffices
of the second and third class.
1t is pointed out that If postal saw
! ings were received at the beginning in
the big offices the cost of admins
tration would limit the introduction of
the system to comparatively few
cities, as the appropriation made avail
able for this current fiscal year was
/ fixed at 100000. The officials de-
clare that the cost Of administration
class than in cities of lower classes
The indications are that one town
In each state will be designated as a
postal savings bank Towns will be
selected where the cost of administra-
4 ton will be reduced to minimum.
4 Later, when a large appropriation is
made by congress the system will be
mrre generally extended
/ Uncle Sam is not finding it an
easy task to set I'D in the banking
business. One of the problems pre-
sented is involved in the effort to do
away with the individual pass book.
So far no satisfactory substitute
been proposed for the pass book. II
the pass b,ook is adopted. as now
seems probable, officials say the ex-
tension of the postal bank system will
ultimately make the central office in
1 Washington the largest department of
the government service
The pass book would require book
keeping in each bank, and the main.
, tenance of large clerical force in
this city With the bank in operation
In the large cities and in hundreds oi
cities of the second and third classes
, it is estimated that the number o1
individual deposits would aggregate
$40 100000 in comparatively few
years.
The department committee which Is
working out the details of organiza
tion of the new bank had under con
sideration a device proposed as sub
: stitute for the pass book. 1t is oper
to one serious objection in that i
would bring into use new form O
currency. This plan provides for {
registration of deposits on a card car
ried by the depositor. This card. it /;
proposed, shall not bear the name O
the depositor. It is recommended tha
q 1T shall be accepted as evidence tha
j a deposit has been made.
q AS the card would be transferable
the adoption of such plan. it /!
urged would result in the postal say
ings cards being used as currency
this defeating in q measure the objec
sought in establishing the new bank
to encourage savings among people
e who are timid about trusting existing
banking institutions.
Approximately $50 postmasters have
y asked that their offices be designated
a as postal savings banks, and 700 ma
S tional bankers want their institution
S designated as repositories for posta
:. savings. Postmaster General Hitch
l. cock, chairman of the board of trus
tees, charged with the duty of admin
J. istering the affairs of the new bank
h is expected back from Europe thi
p week. While abroad Mr.. Hitchcoc'
/ gave some attention to the operation
e of foreign postal banks, notably i
II England.