The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-10-05
POSTAL BANK TO Be
Bis THING FOR
DETROIT
Estimated That Yearly Receipts Will
Total 100000 Large Portion Of
Which Il Now Sent Out of Coun.
try BY Foreign Population
Money To Be Retained in City
Where Deposits Are Made
Details All Worked Out.

Plans for putting In operation the
postal savings bank law passed after
considerable opposition by the last
session Of congress. are about COM
pleted, and the department will soon
be ready TO conduct the new branch
OF Its business. The plans were
worked out by q subcommittee OF the
board OF trustees appointed by the
new law, the trustees consisting or
Postmaster-Gen Hitchcock. 6ecre-
tary OF the Treasury MacVeagh, and
Atty. Gen Wickersham. II. II. Thomp-
son was chairman OF the sub-commit-
tee which has just completed Its work.
According to the plans proposed. the
depositor will receive 2 certificate OF
deposit for his money, instead Of hav-
Ing his deposits entered IN a pass
book, as In the savings banks. These
certificates will be about the size OF
paper currency, will be non-negotiable
and hence not available as currency
or collateral. For sums under ten
dollars, the certificate will be punched
according to the amount of the de-
post, and when ten dollars has been
deposited q ten-doilar certificate will
be issued. Certificates will also be
800. The certificate system does away
with . great deal Of bookkeeping. In
tefeet at the rate Of 2 per cent for
I'VE years will be engraved on the
fAce Of the certificate, 30 that the
postmaster will be- relieved Of all
necessity Of computation. When q
certificate is issued. duplicate signed
by the deposition. Is kept by the post
master, and the signature on the cer-
tincate must correspond when q de-
positor Wishes to withdraw money.
Interest on the deposits win be paid
at the rate OF 2 per cent per annum.
and the interest dates will probably
be fixed ct Jan. 1 and July 1. Inter
est will not be compounded, but II
the depouitor desires he can draw out
his principal plus the interest money
for another certificate.
Certf6catos lof deposit can be cashed
only ~ the once OF issue. II 10
cIaimed that II IL Impossible to make
the certificates payable at any post
ONCE because too much duplication OF
records would be necessary. This is
conceded to be q disadvantage In the
working out of tho system but II Ia
not the intention Of the .aw to pro-
vide complete banking facilities
through the postoffice department.
Postal savings deposits are to re
redeposited with proper security in
banks and trust companies In the
town where they originate. and the
law requires that they be put out to
earn at least 2 IA per cent. II Is
likely that through competition high
er rates will generally be obtained.
Five per cent OF the deposits Is to
be held as cash reserve by the Sec
rotary Of the treasury. Thirty per
cent of the total deposits may be In
vested in United States bonds or
other government securities. The re-
naming 65 per cent must be kept on
deposit except in time Of great public
necessity when the president. by spe-
cial order, may withdraw 1t for gov
eminent use, buying bonds that are
unsaleable or for other financial emer-
gencies.
Postal savings accounts are limited
10 $500. but when q depositor has this
sum to his credit an opportunity Will
be given to invest II In q government
bond. paying 2h per cent.
II can be seen from the outline OF
he plans that the postal savings bank
will In no way compete with the sav'
ings banks now established. except
where public confidence In such In
stitutions is shaken. The object Is
% give the foreigner accustomed 10
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