Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1910-08-03
POSTAL SAVINGS BANKS,

The postal savings bank bill has
become one Of the Nations laws and
it is understood that President Taft
will issue orders within a short time
for the establishment of a series of
experimental banks of the character
provided for in the law in order that
the workings of the institutions may
be observed in advance of their
general establishment. Probably
sixteen or twenty of them will be
ready for operation by October 1.
A great many people are imbued
with the belief that these postal saw
ings banks will work to the detri-
ment Of other banks now in existence,
but the best Informed men say that
such is not likely to be the case tn
any important extent. 1t may be
possible that in some localities, where
savings bank facilities are now
inadequate or of d questionable
character, small depositors may with
draw their accounts from the privately
owned banks and turn them over to
the postoffice, but there is not likely
to be enough of this to amount to
much.
The United States is about the last
among civilized nations to establish
postal savings banks. The system has
been ulged for the past thirty five or
forty years, but the opposition to it
mas prevented the congress from TAX
ing favorable action in the matter.
President Taft made the passage of
a postals savings tank law one of the
important features Of his program of
legislation that he constantly urged
congress to enact, and he was able,
backed by strong public sentiment.
to have the bill passed
The new system will really not be
much Of competition with the COM
mercial banks of the country, as the
rate of interest, per cent, is per
cent below that paid by any saving
bank in the country for such deposits
and per cent less than is PAID by
some Of them.
It is expected that the new system
will be the means cf bringing out for
deposit millions of dollars that are
now hid away in small sums about
the homes of people who have never
made practice Of depositing in
banks, thus adding largely to the
amount Of money kept in general
circulation as we'll as to the general
safety. To give every man the greatest
possible opportunity to better his in
dividual condition, has been described
by an acute observer as the con
slant ideal Of government of the
United States and it is hoped that
this new system OF banking will add
materially in the attainment Of that
end
AS the people will all be more or
less interested in the operation of the
law, we give herewith for tho general
information a few of the features of
the law:
G.) That there shall be a Postal
Savings Bank System organized and
placed under the control of commits
sion, who shall have general supervi
sion over its details.
e A Postal Savings Bank may
be organized at any place in connec-
tion with it's postoffice if authorized
by the commissioner, and when SO
authorized will be empowered to re
ceIve deposits.
e. Deposits may be made by any
person over 10 years of age at Postal
Savings Bank in sums of not less than
one dollar at any one time.
Not over 500 can be deposited by
any one person in any one month and
not exceeding $500 can be deposited
by any one person at Postal Savings
Bank. The aim of the system is to
encourage small savings by persons
who do not deposit their money in
commercial banks.
az The rate Of interest which the
government will pay on postal savings
deposits will he 2 per cent. The
Commission must keep per cent of
the deposits at Washington in cash as
a reserve fund 1t may also invest
20 per cent of such deposits in govern
ment bonds. The remaining IS per
cent must be deposited in the local
state and national banks, or either of
them, where the postal bank is locat-