The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-09-18
POSTAL SAVINGS
BANK SYSTEM
Will Be Inaugurated Before
Next Session of Congress
A GREAT IMPROVEMENT
Good Showing lis Made by the Banks In
the Middle West-AutomobiIe
Takes Place of Railway LO-
connective In California
A GREAT IMPROVEMENT
BY RALPH Nj. wHITEsIDE

Washington, Sept 17.-Before Congress
| opens the postal savings bank system
will have been in augurated These first
| banks will be in the nature of expert
| ments, naturally, for while study has
been made of the English system, con-
ditions are so different that an entirely
new system will have to be built up. 1t
was at first intended to start the banks
| In about twenty-five of the biggest cities
of the country, but this plan has been
changed. 1t is now decided to pick out
twenty-five or fifty sections of the coun-
| try where industrial conditions are va
ried This will be done for the purpose
of testing efficiency of the new banking
system and of determining the response
which may be expected on the part of
the different classes of people served.
An Improvement in the continental sys-
tenn of issuing pass books to depositors
will be inaugurated by this government
| Instead of the book as provided by the
| private banks, card will be issued to
the depositor showing by perforation the
amount of money deposited
| This card will be duplicate of a SINH
lar one perforated at the same time and
| kept in a postoffice, the latter to furnish
an absolute record of the funds receipted
for. Should a card be lost by the depos-
itor duplicate may be obtained upon
application to the office issuing the origi-
nal
1t will be made perfectly plain these
| cards are non-transferable and non-nego-
| table. 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 it is
desired to withdraw any or all of the
funds deposited.
A machine similar to a cash register
in operation will be used to punch the
deposit cards. This means that the rec
ord will be mechanically accurate, and
since both the depositor's card and that
held by the government are punched by
the same act, no discrepancy can posi-
bly, exist.
| In the course of time it is arranged
that the whole system shall be self-sus-
tanning. Only 2 per cent interest will be
| paid on deposits, and the banks and
trust companies, acting as repositories
for the funds collected by the govern
ment, will be required under the law to
pay "a per cent interest The quarter
of per cent will represent the only profit
the government will make, and this will
| go entirely towards maintenance and will
| likewise go as reserves.
Recent examination of individual banks
| throughout the middle west have re-
| vealed such results as to indicate unms-
| takably that the improvement In condi-
| tlons which was noted In a moderate de-
| gree at the time of the last call is de-
cidedly permanent and that the better
ment of conditions which followed the
| warnings sent out at the time when the
| real estate speculative movement became
alarming is so noteworthy to give every
reason for encouragement
Even those officials who before the
last bank call were inclined to be decid-
eddy pessimistc with reference to the
state of things, and the prospects for the
| fall season have changed their attitude
| in view of the recent reports from the
field. The returns from the examiners
will be tested more at large before very
long, as 1t is understood that another
call for condition will shortly be sent
out. This will leave the interval between
this and the last call comparatively
BRIEF but the feeling Is that the Office
will do well to keep close track of bank
of the generally more favorable state Of
things which Is indicated, already re-
marked.
'1f some of these novels about Wall
street are based on fact, it is a common
enough thing for man to lose a fortune
and make another before the end of a
day on the stock exchange" remarked
R. D. Lane of Denver, but, as 1 under
stand it, they lose and win counters, not
real money, although they do have to
settle up with the cash If they get the
wrong end of the deals
"A man of my acquaintance last win
| ter had an experience that has any OF
those Wall street affairs beaten a city
| block. His name is William Kennedy,
though those who call him Bill know
| him by no other name. He is a big pros
| pector in Nevada He actually lost $685.
| 900 and in an hour got 1t back again. 1t
wasn't stolen from him, either-none of
that road agent business. He just lost
it as you might lose five-dollar bill on
| the sidewalk.
| ions, started from the Round mountain
| the tonneau was gold dust which was
valued at 100000. The dust was in small
| sacks, such as are usually used for the
transportation of the precious metal
They sent the machine along at a pretty
! lively speed and were enjoying them
selves pretty we'll. None of them was
worried about the safety of the treasure
they were carrying. Parts Of the road