The Detroit times., 1910-03-24
POSTAL BANK IS
FOR SMALL CLIENT
No More Than 500 Can Be De-
posted in One Month and No More
Than $500 In All.
BY w. S. COUCH.

WASHINGTON, March 24.-Uncle
Sam will try to apply trading stamps
to the banking business when the pos
tai savings bank bill becomes a law.
The village postmaster will find him
self a banker. then. whether he likes
II or not.
The postal savings bank bill has
passed the senate and will pass the
house. The present quarrels which
the statesmen are having over this
bill all relate to what they want done
with the money after 1t Is deposited
with the postoffice banks. To be sure,
the Democrats playing fool politics,
say the constitution does not permit
the government to be a banker, and
this question Is pretty sure TO be ta-
ken to the courts. The postoffices will
become banks, however, without wait
Ing for a court decision on this dis
pute. so the country will have chance
To at least try out this savings plan.
You can start with 10 cents. For
the first 10 cents the postmaster will
give you postal savings postal
card" For each OF the next nine
dimes you deposit you get postal
savings stamp" which is stuck on your
card. When the nine stamps are on
the card you exchange IL for de-
posit book, which Is issued only when
at least 81 Is deposited. You can de-
post no more than 500 In any one
month. and can deposit no more than
$500 In all. So you see, the whole
scheme is for the small depositor.
he interest will be per cent q
year. computed once a year.
Any person over 10 years old can
become a deposition. and married wo-
mans account Is not subject to her
husbands control No person can
have more than one account.
After the account Is opened each
succeeding deposit In the pass book
must amount to at least 81. but you
can start another postcard, trans
ferring 1t to the pass book when Ii Is
filled. Any depositor may withdraw
his or her deposit, or any part OF IT,
at any time. The postmaster must
pay II on demand.
Other details OF postal savings
bank operation are left to board
of trustees to fix. The postmaster
general. and the encouragement COM
pose this board. 1t is left to the post
master-general to say whether, at the
beginning of this experiment, 1t shall
be tried except In first, second and
third-class money Offices. III he makes
only such postoffices banks at first,
though, he must take In the rest as
soon as ne can arrange to do so.
The bill is intended to give citizens
right to deposit money wherever
stamps are sold. This is shown by
provision that fourth-class postmas-
tiers. the kind who combine cross
roads store with the postoffice, may
collect one-fourth Of l per cent from
the government for all the money de-
posted with them The fourth-class
postmaster is paid on percentage OF
his business. anyhow; hence this IN
crease III that percentage for this ex-
ira work put on him. The presidential
office postmaster won't get anything
extra.
The whole fight over the postal
savings bank bill has centered on what
use Is to be made OF the money de-
posted with the government. Sen
ators Root and Smoot and some OF
their colleagues, and President lait
himself took the view that the gov
eminent had no constitutional right 10
take up the banking business. IL ala
have n right, though. they said, TO
borrow money. They wanted the de-
posits invested In government bonds.
The insurgcnt senators declared the
government had a right to establish
postal savings banks. They attacked
the bond clause as the opening wedge
for tho Aldrich central bank system
and as a scheme to comb the country
for small savings so that Wall-st.
might have the aggregate cash to spec
ulate with.
The insurgents forced an amend
ment directing the deposit OF the pos
tai savings In local banks. either state
or national, on approved security. the
banks to pay at least 21-4 per cent
interest.