Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1910-11-26
MUCH TROUBLE FOR
POSTAL BANK
ADVOCATES
Working Plan for SYSTEM Re-
suit of Months of Hard Work.
Proves Unsatisfactory to
Board of Trustees,
Morning Journal Bureau,
Gl3 Munsey Building,


the postal savings bank system auth
orized at the last session of congress.
Early last summer the postmaster
general designated a committee. on
| sistig Of prominent officials in his de-
partment, TO devise a workable plan
for the new system. After some
months Of hard labor a report was
submitted to the board OF trustees on
the return of the members to Wash
ington from their summer vacations.
The plan submitted has failed in sew
eral particulars to meet with the en-
tire approval of the board, although
Il is believed thai the scheme as or
iginally devised will ultimately be
adopted, with some more or less ma
terial changes.
The postoffiee committee, after
much study of the question, decided
that the pass-book plan was not q
feasible one because of the large eN-
penditure it would involve for clerk
hire, etc, and substituted a plan by
which depositors would receive a GER
tificate with each deposit instead of
an entry In a pass-book.
1t is probable that this recommen-
dation viii be carried out. with a
provision that the certificates shall
have attached to them coupons rep
resenting the amount of interest due
at certain stated dates, rather than
the, no-ccupon plan recommended by
the postoffice committee. The idea
which now seems to have the great
est amount of support among the Of
ficials is that the coupons attached to
the certificates shall be sufficient in
number to cover interest payments
for a period of three years.
MI IL 20, - - fh.- 1nAatg 60 T.
ings bank system which has been
definitely decided upon is hat at the
outset there shall be only forty-eight
postoffices, all of the second-class,
designated to receive postal deposits
one in each state and territory.
Tentatively. it has been decided to
put the system into operation as
nearly as may be on the first day of
January next, and it is more than
probable that within the next few
weeks thereafter additional postof-
fices viii be designated, and before
six months have passed the plan VIII
be in quite general operation through
out the entire country.
Another matter to which the board
of trustees has given considerable
thought is as to the character of Sc
curities hat shall be received by the
government from postal savings de-
pository banks. The law provides
that the beard of trustees shall take
from banks receiving postal funds
such security in public bonds or
other securities, supported by the
taxing power. as the board may pre-
scribe, approve. and deem sufficient
and necessary to insure the safety ana
prompt payment Of such deposits on
demand Up to this time the matter
has proceeded no further tina a gem
eral exchange of views among the Of
~ficials. but they are practically agreed
that as liberal Il policy should be
adopted in this respect as Is consist
ent with safety.
1t is pointed out that the law clear
ly intended liberal treatment of this
question, inasmuch MS it made avail
able for security all bonds, support
ed by the taxing power Bonds is
sued by city park boards, when such
boards and bonds are authorized by.
the legislatures of the state, drainage
bonds, and others of the same general
character, it is said, can legally be ac-
cepted; n it is altogether probable
that the secretary of the treasury.
who likely will be charged viii the
duty OF passing upon the acceptability
Of the bonds offered, viii follow the
clear intention Of the law ana min
imize the difficulty that banks might
otherwise encounter in obtaining
bonds for deposit. or course, United
States and other bonds now accepted
against government deposits will be
available.
In considering the whole scheme
the board of trustees has recognized
two points Of law. In the first place,
the benevolent feature might be made
prominent, the system being conduct
ed on a plan which would promote
thrift and afford the best security Tor
the poor. az the same time bringing
out as large an amount of dead capital
as possible for the use Of the commun-
ity. These considerations might be
regarded so important as to minimize
the question of cost within certain
reasonable limits.
The other view. recognized as the
business one. would mean that the
government must Ia any event make
the new enterprise self-supporting.
This view does not consider that the
government Is bound to do anything
that is Immediately unprofitable.
Il is the purpose of the board 10
find % happy medium between the
strictly business view and the purely
philanthrcpic view. always keeping ia
mind the fact that the SYSTEM, m ar
der to secure the best results. must De
made cheap and convenient a. lle de-
positor. thus making it at once popu-
lar to a large class of peop!t Who
hitherto have never done any banking
business.
Naturally. the treasury department
is vitality Interested in the new postal
bank system. II IL is a sue
as there is every reason 90 be-
lieve il viii be-. postal deposits in
large amounts viii help to solve some
very serious treasury problems. IL IS
within The probabilities that a large
accumulation OF postal deposits ma5
obViate the necessity for an issue or
Panama bonds. N this should prove
to be the case. one Of the most serious
complication OF recent times So "a
the government bond situation b
win have been solved.
Readers Will recall that IL would
impossible to issue Panama bonds
under the authority contained in the
tariff act OF August 5. 1903. without
discriminating against the S12l.ouo,-
600 2 Der cent bonds already outstand-
ing. unless congress should la some
manner adopt the suggestion made
hv the secretary Of the treasury to adj
just the tax on national bank note cir
50 as 90 give the latter 40
least the benefit ~ a llarlty.
IL is obvious that since postal de-
posts bearing . Ger cent Interest per
fnnum may at the option 81 the de-
position De exchanged Tor United states
bonds bearing ? - per cent per an
mum the general tAnd !n lhs tFsasltL