The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-01-28
POSTAL SAVINGS
BILL IS DRAF TED
MANY Changes Are Made From
the Original Measure
LIMIT ON THE ACCOUNTS
An Account May Be Opened for Not
Less Than 81 and Not More
Than $500 In One
Month. "a
LIMIT ON THE ACCOUNTS

Washington, January 27.-The postal
savings bank bill drafted by Senators Car
ter, Dolliver and Owen. a subcommittee
of the committee on postoffices and post
roads. was perfected today. and by Mr..
Carter was introduced into the Senate,
1t was referred to the postoffice COM
mittee and probably will be reported back
to the Senate tomorrow
The bills originally introduced on this
subject were considered with great care
and large number of changes were
made. Particular attention was given to
scheme to prevent the concentration
of postal deposits in the money centers
of the east. There Is said TO be a provi-
sion allowing banks receiving the postal
funds for safekeeping to give indemnity
bonds in lieu of collateral security, which
obviates the necessity of banks going
to bond centers TO purchase the securities
required by the government and over
comes their objections
The bill provides there shall be pro-
vided a system of postal savings de-
positorses under the supervision and di-
rection of a board of trustees consisting
- e4AC 'CNA Otdiy Vi tiiC IiCdSuiyt tHC
Postmaster General and the Attorney
General, acting as ex-officio officials.
The board is authorized to make all
regulations governing the receipt, trans
mission, custody, investment and repay
ment of moneys deposited with the postal
savings bank.
The board is required to report to Con-
gress at the beginning of each regular
session the number of postoffices receiv-
ing deposits in each state and territory,
the aggregate amount OF deposits and the
aggregate of withdrawals, the amount of
interest paid and the amount of extra
expense incident to the postal savings
bank system.
All postoffices of class authorized to
issue money orders and such others as
the Postmaster General may designate
are declared to be postal savings de-
positories. They are to receive deposits
from the public and are to be kept open
for the transaction OF business every
day, Sundays and legal holidays except
ed, during the usual postoffice business
hours for the locality where the depositors
are located. ..,-
1t is provided, however, that the Post
master General may limit at first the
number Of repositories to money order
offices of the first, second and third class
and extend the system thereafter as rap
idly as practicable.
Accounts may be opened in any postal
bank by any person of the age Of 10
years or over and by married woman
in their own names and free from any
control or interference by their husbands.
No person will be permitted to have more
than one account
An account cannot be opened for less
than 81 and no more than 500 can be
deposited in any one calendar month.
All deposits must be in multiples OF 81
but in order that smaller amounts may
be accumulated for deposit savings cards
will be issued and 10-cent postal savings
stamps sold. When these cards and at
tached stamps show an investment of
81 or multiples thereof they will be re-
ceived as deposits.
Deposits in postal savings banks will
draw per cent interest accredited on
the books Of depostors once in each year.
No person will be allowed to have
balance in a postal bank in excess of
5000 exclusive Of accumulated interest.
Funds received by postal savings banks
are to be deposited In any solvent bank
or banks subjected to public supervision
and examination, In the state or ter
ritory and as nearly as practicable in the
immediate neighborhod in which the
funds are received at rate of inter-
est not less than 2Z per cent.
The deposits are 10 be distributed
among the local banks on basis of their
capital and surplus and the banks may
give indemnity bonds to insure the safety
and prompt repayment of deposits.
At it's option any bank may deposit
collateral securities subject to the APP
proval OF the board. In the event that
banks refuse to receive postal deposits
on the terms prescribed the funds may
be deposited with the treasurer of the
United States. Provision Is made for
the maintenance Of a reserve fund not