The Owosso times. (Owosso, Mich.) 1897-1926, 1910-07-01
UNCLE SAM. BANKER, TO MOVE
CAUTIOUSLY
Postal Savings System Will be
Studied Carefully Before Govern.
ment Acts

STUDIED Carefully Before Govern
ment Acts.
Washington, June 1S.-Uncle Sam
does not intend to become big banker
in haste. He will look over the field,
and before his postal savings bank in
stitution assumes giant proportions he
will try to learn proper constructive
methods. President Taft realizes that
as far as this country is concerned the
postal savings bank business is an ex-
pertinent. Precaution is the word.
For years there has been in places a
marked demand for the establishment
of this federal institution. Party plat
forms indOrsed the proposition and con-
gress has given it it's sanction.
START BANKS JULY 1.
During the fiscal year which begins
July it is the governments intention
to spend $1,000 on the beginnings of
postal banking A board of trustees
will be brought into existence The
members will be the postmaster gener-
al, the secretary of the treasury and
the attorney general. 1t will be their
duty to designate the postoffices which
shall be given rank as repositories.
The legislation as originally present
ed to congress made repositories of
every money order Office and such other
Offices as the postmaster general might
name. 1t was decided that this was
giving too much power to one man,
and the closer the study of the bill by
the administration the more apparent
it became that the matter of naming
repositories should be the concern of
the full board of trustees.
Until the board of trustees takes ac-
tion it is impossible to say how many
repositories will be designated at the
outset. 1t is the intention of the post
master general and his cabinet col
leagues to make close study of the
situation before reaching a decision.
WHERE BANKS WILL BE LOCATED.
The probabilities are that at first %
postoffices in each state, the offices in
the larger cities to be included in the
list, will be made repositories, and that
for experimental purposes few post
offices in smaller communities also will
be designated.
After the repositories are established
in the great cities a month or two will
tell the story. 1t is believed that
foreigners in New York, Chicago, st.
Louis and the other big cities will take
their money from its private hiding
places and give it into the keeping of
Uncle Sam.
TEST IN COURTS is EXPECTED.
The thought seems to be general
among the lawmakers that sooner or
later the courts will be called upon to
decide the constitutionalty of the postal
savings bank law. 1t is contended by
the officials who doubt the laws con-
stitutionality that to establish deposi-
tories to receive the peoples money and
to pay interest on it and to relend it to
banks or to invest it is not govern
ment function, and that no expressed or
implied authority can be found for it
in the constitution.
No one seems to be able to suggest
the class of individuals or the class of
corporations that may bring the law to
test 1t is probable that its working
will be watched for while, and if it
does not in any way disturb the equili-
brium of banking or any other business
it may be that the courts will not be
approached.