The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1910-07-01
POSTAL SAVINGS BANKS

The postal savings banks are to be
grated upon the existing postal ma
chinery under the general direction
of board of trustees comprising the
postmaster general, the secretary of
the treasury and the attorney general.
These trustees are given wide discre-
ton, for they are not only to frame
the regulations under which the gov
ernment will receive and invest the
savings deposits, but they are to des-
ignate the Offices which are to act as
postal savings depositors. Thus, while,
all persons over the age of 10 years
are eligible to open postal savings ac-
counts with the government, 1t does
not follow that every postoffice will be
made depository. 1t is assumed that
the facilities will first be extended to
those sections that are far removed
from existing savings and banking in
stitutions.
Deposits are to be made in sums of
one dollar or muitiples thereof, $500
being the maximum deposit allowed
to any one depositor; and to the end
that the pennies as well as the dollars
may find safe deposit place under
the government guarantee deposit
stamps of the denomination of 10
cents are to be sold, and kept by the
purchaser until ten have been accum-
ulated, when the card containing them
will be accepted as a deposit of one
dollar Deposits are to be subjected
to withdrawal at demand, and are to
bear interest at the rate of per cent
per annum.
The money deposited at the postal
savings banks is to be deposited in
such national or state banks, and trust
companies doing banking business
in the immediate locality at which 1t
is received as agree to accept the
money on the governments terms.
The latter include the obligation to
pay interest at the rate of 2h per
cent per annum and to furnish securi-
ty for all such postal savings deposits.
| Where there are no nearby banks will
ing to serve the postal savings system
on these terms, the deposits may be
sent to more distant banking institu-
tions, or, as a last resort, directly to
the United States, who is made treas,
urer of the system.
| ID
cent of the deposits shall remain in
the local banks, that 30 per cent shall
be invested in United States bonds
and that per cent shall be held in
tact in the United States treasury as
reserve. But there are exceptions
to this arrangement, the trustees be-
ing authorized, and the president in
certain contingencies Also, to direct
the investment of larger proportions
of the postal savings deposits in gov
ernment bonds, existing bonds sub
iect to call being withdrawn and pos
tai savings bonds issued In lieu of
them. Individual depositors may have
their accumulated deposits transform
ed into az per cent bonds of small de-
nominations, 1t being expected that
very large sums will thus be invested
in government securities or drawn in
to the postal aavings banks which are
now boarded.
The entire postal machinery and
personnel is to be employed in the
working out of the postal banks, and
the smaller postmasters are to receive
a small percentage-o of l per
cent of the interest-bearing deposits
at their ofiices-as payment for add
ed labor and responsibility. And the
solemn faith of the government is
pledged for the payment to the depos-
itors of the money intrusted to it's
care. One hundred thousand dollars
is appropriated to defray the cost OF
inaugurating the system, all the de-
tails being intrusted to the postoffice
department under the direction of the
trustees. Philadelphia Public Ledger.