Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1910-11-03
STRIKE A SNAC'
Postal Savings Banks Held Up
on Account of Trouble in
Departments.
FIGHT CERTIFICATE PLAN
Postoffice and Treasury Officials Diff
fer, Latter Favor;ng the Pass
Book System.


ton of the postal savings bank sys-
TEN remain 10 be settled by the board
of trustees. 1t probably will not be
before Jan. l, 1911, that the govern
ment will be ready to give the system
it's first trial in the limited number of
second class offices-one in each state
where repositories are TO be estab-
;tshed for this trial
Owing to conflicting statements from
official quarters there has been some
misunderstanding of the situation af-
fecting the starting of operations. 1t
seems that, after all. the certificate or
deposit scheme which has attracted
30 much attention has not been finally
approved.
While Secretary of the Treasury
IacVeagh is understood to favor the
certificate of deposit plan of Postmas-
ter General HitchcOck's conception II
it be found feasible after further in
vestigation, subordinate officials of the
treasury department are holding out
for the old fashioned pass book. AT
least they hold that there are radical
features of the new idea which re-
quire careful consideration before the
official formal stamp of approval is
placed upon il. These treasury skep-
tics are keeping the subject alive.
The principal objections raised to the
certificate plan are four in number.
The points involved are as TO the con-
sistency with the provisions of the
postal bank law itself. the liability to
loss of certificates in cases where de
pOSitorS become possessed of large
number of them, the tendency on the
part of some of the depositors to cash
certificates even when necessity does
not compel it. owing to the ease of
converting them into money. and the
interest computing complications which
might deprive depositors of their just
returns. To start with. the first OBJ
lection raised by the treasury experts
is this:
Can Have but One Account.
The law provides that no person
shall have an account at more than
one postoffice. that no person shall de-
post more than 500 in a single month
and that he shall not have total de
Uos;t ut more than $500. 1t is argued
that under the poStoflice system as il
stands at present it would be hard TO
keep check on the person who sought
to establish more than one account.
He might buy certificate at one office
and later buy one nj a nearby office.
The second objection is that a de
positor would in time accumulate q
large bunch of certificates of small
denomination; some of them he might
carry around with him; losses would
be frequent. and the making good of
these losses through the issuance of
duplicates would be cumbersome.
The most important objection. it is
declared. is the third on the list. II
is pointed out that one of the main
purposes of the postal savings banks
is to encourage thrift among the work
ing GLASSES. who ordinarily do not pat
ronize private banks. The case is cit
ed of the man who carries some of
the certificates in his pocket. where
as pass books are usually kept at
home except when deposits are made.
Many times. ii is declared. n deposi
tor would be tempted to drop in at the
postOffice after working hours and
cash one of his certificates for no 9th
er purpose perhaps than to buy cigars
or drinks when he would not think
of drawing out money if the conven-
lent equivalents were not burning
holes in his pockets.
Finally there is the matter Of inter
est. The existing scheme provides for
the issuance of certificates of various
denomination, from one dollar up. the
smaller being convertible into one of
the larger denomination. But. it is
pointed out. each certificate shows its
own accrued interest. When several
IF small denomination were exchanged
for one of larger denomination the in
terest would date only from the issu-
ance of the latter. a fifty dollar GER |
tifcate, for instance it is stated by
way of example. could not very well !
be marked to show just how long in
terest had run on each dollar or five |
dollars of the aggregate.
Then, again, the depositor with 500 |
Or 500 or $500 certificate. if he wished |
TO draw only part of his deposit. must |
take out a new certificate. thus losing |
back interest on the balance.
That there is Il good deal Of feeling !
between officials of the postoffice and |
reasury departments respectively over |
he situation cannot he denied. At the |
postoffice department it is declared |
hat if there is unreasonable delay II |
putting the postal saving system ii |
operation the fault will lie With the
treasury officials. who -aited unit
Ill the preliminary plans had beer /
mapped out by the committee desie
lated by Postmaster General Hitch
,ock before showing any interest.
On the other side it is limited thai
he postotfice department went ahead
)recipitately and that the treasury de
)artInent was not invited to have
on tho committee thai