The Washington herald., 1910-07-18

Editor The Washington Herald:
VIII the postal savings bank act be
carried out as Congress intended it TO
be?
For example. IL provides that postal
savings received in the Washington post
Office shall be deposited In Washington
banks willing to receive such deposits
under the terms Of the act Now, public
money is deposited In Washington banks
as In a safe deposit company, 20 be re-
turned when called for, but not checked
out In over forty years no public money
has been checked out Of them. even dur
ing financial panics. Shall the postal
savings deposits not be checked out. If
required?
The act says that postal savings funds
may be at any time Withdrawn from
banks for the repayment Of postal saw
ings deposits when required for that
purpose. It says: Withdrawals shall be
paid. so far as practicable. from the
deposits in the community in which the
deposit was made" Hence, Washington
depositors are 10 be repaid from the
deposits IN washington banks. But
Washington IS one Of ten cities In which
the Secretary Of the Treasury does not
permit a postmaster 10 make disburse-
ments by checks on banks. The post
master OF Washington Is compelled 20
keep HIS account with the Treasurer Of
the United States II the postmaster is
not TO draw on Washington banks. viii
the Treasurer, perhaps, telephone the
National Metropolitan Bank or Riggs
National Bank, with the secretary's per-
mission. to send currency across the
street FOR the repayment OF postal saw
ings deposItors?
The other nine cities where the Secre-
tary does not allow postmasters 10 have
official accounts with banks are Balti7s
more. Boston. Chicago. Cincinnati. New
Orleans. New York. Philadelphia. ST.
Louis. and San Francisco. Postmasters
in these places have accounts with as
slstant treasurers. Elsewhere. in prob
ably every city OF the United States, the
Secretary designates a bank 10 hold the
postmaster's disbursing account. Thus
ten cities. Including our principal ports,
are Disseminated against. At each OF the
ten the Treasury has public deposits IN
banks, but draws no checks on the de-
posits.
This nonchecking system, confined to
ten cities, IS a survival Of an old law,
long since repealed, which made It
felony for disbursing officers 20 deposit
public money with banks. Since 1853 II
has been discretionary with the Secretary
OF the Treasury TO authorize the deposits
OF United States disbursing officers IN
sbanks at Washington and every other
city or place In the United States While
this matter Is, and ought to remain. at
the discretion Of the Secretary. the postal
savings bank act Of June q. 1910, implies
that posunasters will be authorised 10
withdraw postal savings deposits from
banks for the repayment Of postal saw
iEgs depositors And If the postmaster Of
Richmond or Washington shall be au-
thorized 20 make Withdrawals for that
purpose. why not the postmaster Of
Washington. or New York. or Baltimoreg
The recent publications Of the National
Monetary Commission on the National
Bank Of Belgium and the Swiss banking
law show that the banks OF these coun-
tries afford safe and sympathetic or
gan to the government for carrying on
the fiscal operations Of the treasury"
In each land a national bank acts as
cashier for the state with branch or
agency in the chief town OF every tu-
dicial district. and in additional localities
where deemed necessary. There are ino
national banks repositories located at
$50 places throughout the Union, with
eleven United States repositories In the
District OF Columbia. Has not the great
est and most enlightened power on earth
as much authority 20 place the checking
accounts of postmasters in banks at its
Capital and principal ports as the little
kingdom az Brussels or the little republic
at Berne? I guess so.
JAMES C. HALLOCK.
July ls 1910.
The King OF England the most i'm
portant of all the monarchies OF the
world, has the shortest title.