The Washington times., 1910-08-28
Banks viii Be Installed in
Many Sections by No
VembeT /.
LIMITED SERVICES
AT THE BEGINNING
Because Of SmallneSs of AppTOpTla-
ton Scheme Viii Have TO
Be Worked Up.

Notwithstanding the smallness Of
the appropriation, the trustees Of the
postal savings bank system are ar
ranging 10 install between twenty
nve ana fifty banks in as many sec
tIons Of the country, by the first OF
November
The service at first afforded VIII
necessarily be limited, inasmuch as
Congress appropriated only 100000
with which 70 inaug gurate the Wnole
system. Out Of this sum the pre-
Iiminary expenses. such as providing
forms. stamps and Instructions, must
be paid. There. VIII be little left for
any other purpose
The trustees believe, however. that
a few banks can be financed out Of
the sum and these viii be installed
purely as experiments As soon as II
is determined how much additional
help VIII be needed IN the various
postoffces and how great viii be the
cost OF operating. Congress VIII be
asked for more money
In The course OF time II is arranged
that the whole system shall be self
sustaining Only per cent interest
viii be paid on deposits and the
banks and trust com panIeS- acting as
depOS- tories for the funds collected
by the Government VIII be required
under. the law 20 pay "a per cent
interest. The quarter of / per cent
will represent the only profit the
Government viii make and this viii
90 entirely toward maintenance and
reserves
N Different Parts
Instead Of locating the first twenty
five or fifty banks in the twenty-five
or fifty largest cities OF the country,
the trustees viii probably pick out
country where industrial conditions
are varied This VIII be done for the
purpose OF testing efficiency Of the
new banking system and Of deter
mining the response which may be
expected on the part OF the C1uerent
classes Of people served
An Improvement IN the continental
system OF issuing pass books to de-
positoTs VIII be lnauEuTaIed by this
Government Instead Of the book, as
provided by the private banks, a card
viii De issued TO the depOSltOr show
ing by perfOrauon the amount OF
money deposited
This card viii be a duplicate Of a
similar. one perforated at the same time
and kept IN the pOStOfnce- the latter to
furnish an absolute record OF the funds
receipted for Should a card be lost by
the deDOsitor a duplicate may be OBJ
issuing the original
Cards Non-TransfeIabIe-
It VIII be made perfectly plain these
cards are non-transferabIe and non-ne-
EotiabIe- They cannot be traded in or
passed about as legal tender. They
must be held by the party making the
deposit and presented by that party
when Il is desired 10 withdraw any or
al OF the funds deposited
4 machine similar TO a cash register,
IN operation, viii be used to punch the
deposit cards This means that the rec
ord win be mechanically accurate, and
since both the depOsitOr's card and that
held by the Government are punched
bF the same act, no discrepancy can
possibly exist
The committee Of postal experts are
stul meeting day and night in theT
effort to perfect the new system They
expect to be able 10 lay most Of the
details before Postmaster General Hitch
cock upon his return 70 Washington
next month He viii IN turn, call an
early meeting Of the trustees TO approve
Of the preliminary work