Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-09-28
Report of Trustees Before the
President and Cabinet.
EARLY ACTION EXPECTED
Details Worked Out by Committee
in Post Office Department.
SYSTEM GOVERNING DEPOSITS
Two Per Cent Interest Guaranteed
on All Sums Of More Than
One Dollar.

President Taft and his cabinet have to-
day been going over the final plans for the
establishment of postal savings banks.
Postmaster General Hitchcock is chair
man of the board of trustees of the
postal savings bank system, and the COM
plete plans. as drafted by the committee
of postal experts which has been at work
all summer. were taken by him to the
White House. Secretary MacVeagh and
Attorney General Wickersham, the other
members of the board of trustees. had
the plans explained to them by Secretary
Weed of the board of trustees in addi-
tion to having formally considered them
at a meeting which lasted until after
midnight
After the President has examined and
approved the report but little will re-
main in the way of putting the system
I'm operation. At the meeting of the board
of trustees yesterday afternoon, which
was continued until late last night in the
Postmaster Generals office, favorable
consideration was given the report and
the recommendations of the special COM
mittee which has been working through
out the summer upon the details OF or
ganization.
Embraces Recommendations.
This report embodies recommendations
upon every feature of the system, includ-
ing the form and design of deposit cards
for deposits Of less than a dollar. GER
tificates for higher amounts. the design
of deposit and postage stamps to be
used. the methods Of accounting, the
amounts and forms of the bonds, and
also a list of the offices where the new
postal savings banks shall be first estab-
lished. Much thought and care have been
spent upon the details by the committee,
of which H. H. Thompson, superintend-
ent of the division of finance, is chair
man. under the guidance and suggestions
of Chief Clerk Theodore L. Weed, who
has been in close touch both with the
Postmaster General and the Secretary of
the Treasury as the work progressed.
The plans Of the committee. it Is
said. are generally known to the Presi-
dent and the cabinet. and the only de-
lay to putting the system in operation
after the Presidents approval will be
that caused by the printing Of supplies
and their transmission to the Offices to
be designated as banking Offices
Under the eo plans nan proposed noaS by the
used. For deposits of less than a dol
lar stamps will be attached to specially
prepared cards bearing the name and
serial number of the depositor and the
name and serial number of the Office
For deposits in amounts Of more than
one dollar, certificates will appropriate
ly designate the depositor and the
place where the deposit is made. These
certificates later on may be exchanged
for 1nterest-bearing bonds.
Interest-Bearing Deposits.
Postal deposits will bear interest at
the rate of per cent per anhum pay
able once year, except upon deposits
of less than one dollar. Under the law
the balance to the credit of any one
person shall never exceed $780, exclusive
Of accumulated interest. Depositors may
withdraw the whole or any part of their
funds. with accrued interest, upon de-
mand.
One difficulty met with is to provide a
stamp cheap enough to allow Uncle Sam
to handle ten-cent deposit without loss
and yet at the same time get one not
easily counterfeited. BY the law creating
this banking system the government is
only allowed quarter of l per cent on
which to operate the system. The present
stamp represents loss to the govern
ment, but 1t is considered by the postal
authorities that the stimulus to open an
account will make up for the loss.
Requirements Of the Law.
The law requires that surplus postal
savings funds shall be deposited in SOL
vent national or state banks subject to
national or state supervision and that
they shall bear interest at the rate Of 2N
per cent per annum Under the law the
word 'bank' includes savings banks and
trust companies doing a banking busi-
ness.
The faith of the United States is
solemnly pledged to the payment of the
deposits made In postal savings deposi-
tory offices, with accrued interest" under
the terms of the law creating the system.
There seems to be doubt that a
postal savings bank will be established
at the Washington post Office as soon as
the new system is put in operation, which
is expected to be about November /.