New-York tribune., 1910-01-28
POSTAL BANK PLAN
AGREEMENT ON NEW
BILL REACHED
Meets Mr. Taft,s VieTs-Pro-
rqaons for Deposit and In
Uestment of Funds.
From The Tribune Bureau !

platform pledge Of the Republican party
for the establishment of postal savings
hanks has been so potential that an
agreement practically has been reached
on the details of a bill. It is believed
mat this agreement will be ratified to-
morrow bY the Committee on Post
offices and Post Roads. and the bill will
no reported 10 the Senate Tomorrow af
ternoon. The measure will be in charge
nf Senator Carter. whose name il viii
hear. as 1t was prepared by him and
senator's Dolliver and Owen. 1t is the
rrrpose Of Mr.. Carter TO press consider
si;on OF the bill and he hopes TO see it
mass the Senate next week, Immediately
following the passage of the Alaskan
biL
The amended Carter bill eliminates all
RE administrative sections of the for
r,er measure and gives 10 a board of
trustees. consisting of the Secretary of
tie Treasury, the Postmaster General
and the Attorney General. power TO
make all necessary regulations respect
ing the receipt OF funds. their transmits
sion custody. investment and repay
nent.
The bill provides that deposits may be
made IN any postoffice authorized to is
slIe money orders and such others as the
Postmaster General may designate by
srv person of the age Of ten years or
more and by married women in their
own names and free from any control or
interference by their husbands No per-
son win be permitted TO have more than
one account
An account cannot be opened for less
tban 81 and no more than 800 can be
deposited in any one calendar month.
All deposits must be in multiples of 81.
rut in order that smaller amounts may
~ accumulated for deposit savings cards
viii be issued and 10-cent postal savings
STAMPS sold. When these cards and at
rached stamps show an amount Of 81
rr mUltiples thereof they will be received
Is deposits.
DEPOSITS viii draw per cent interest,
credited on the books of depositors once
in each year No person will be allowed
n have Z balance in excess of $500. ex-
elusive Of accumulated interest.
DEPOSITS IN LOCAL BANKS
The amended bill contains a provision
that the postal savings fund shall be de-
posted in local banks This provision
vas strongly urged by Senators. who
feared danger Of the money flowing into
the banks Of the great financial centres.
The original draft gave the board discre-
ton as 70 depositing the funds. The
section as amended is as follows:
That postals funds received under the
proyisiOns OF this act shall be deposited
IN any solvent bank or banks, subject to
pGbHc supervision and examination in
ne state or territory as nearly as prac-
fiosble IN the immediate neighborhood
IN which the funds are received, at
rate OF interest not less than "a per
cenruEu per annum- Where more than
one such bank is available the deposits
shsu De distributed ratably among the
hanks as far as practicable on the basis
Of their apital and sur us. The board
OF trustees shall take from such bank
or banks such indemnity bonds as the
hoard may pre5-ribe, approve and deem
sufficient and necessary TO insure the
safery and prompt payment OF such de-
posts on demand. At its option any
bank may deposit collateral security in
liell OF an indemnity bond. such collateral
10 be subject to the approval Of said
board A4=A1
INVESTMENT OF FUNDS.
The bill provides further than in states
where there is no provision governing
The investment OF savings bank funds,
postal deposits shall be invested in
securities which are made legal invest
ments for savings banks by the laws Of
New York and California There is also
provision for the investment Of the
funds in United States bonds in cases
where the local banks fail 70 meet the
conditions respecting the rate Of interest,
etc
Fourth class postmasters are 10 have
additional compensation, not exceeding
one-foUrrh Of I per cent on the average
yearly deposits for the transaction Of
postal savings depositary business. The
bill carries an appropriation OF S1OoDo
70 enable the board 10 establish the new
system
Postal savings Will be entitled TO all
ne safeguards provided for the protec-
tion of pUblic moneys. The bill is 70
become effective on the first day Of the
third calendar month after its approval
SENATOR CARRIERS REPORT.
Mr Carter has prepared an exhaus-
I'VE report in support Of his bill He
vii seek 70 show that the proposed
isglslstion viii not affect commercial
oanking, 5ut viii bring from hiding into
tne chanels OF trade and investment
money which would never be deposited
70 commercial banking institutions. MI
carter points out that whereas the de-
POSTS IN all Canadian banks Increased
rom S424 10000 in 1903 70 S655,OoO.OOo
N IsOI, the increase in the postal saw
lhgs banks Of Canada IN the same per-
20 wss from 81. 100000 10 S47.0CO.GtI
MS ne says, illustrates that postal saw
es deposits DO not increase IN the
sane proportion IS deposits in CONNER
-sl banks. and indicates that there Is
Sn'g Z certain amount OF money III the
O'uhtry which under any circumstances
WI oe deposited in the custody OF the
government He insists that ultimately
Nle postal savings banks will prove OF
eN'antage 10 commercial banks, mas
'1ch as they viii encourage thrift ana
VII prompt depositors ultimately 10
sex Investments through the medium
tne regular banks
n Carter has collected some inter