Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-07-09
NONE BEFORE JAN. |, 1911
Interest in Law Seems to Be Gen.
eral All Over Country.
QUESTION AS TO SECURITY
Inquiry Received From State of
Washington Regarding Warrants
and Street Improvement Bonds.

postal savings bank the people gener-
ally are taking very active interest in
the new savings institutions. The Post
Office Department is receiving many let
ters from postmasters and others. Thus
far eighty postmasters have written ask
ing for the establishment of postal saw
ings banks at their Offices. Applications
have been received at the Post Office
Department from seventy-four banks and
at the Treasury Department from eighty
one banks, a few probably included in
those that applied to the Postmaster
General, for the designation of such
banks as repositories for postal savings
funds. Postmaster General Hitchcock is
reported as telling Postmaster Campbell
of Chicago that it will be January l,
1911, before the first postal savings bank
can be established.
The postmaster at Meriden, Conn,
writes that the most prominent citizens
of that place are asking him to petition
for the establishment of postal savings
bank at his Office. Another postmaster,
In Pennsylvania, writes that his Office
not only has a large foreign population
with which the new bank will be espe-
cially popular. but that surrounding him
is a territory extending eighteen miles
which has no bank, but a very large
rural population. with only the facilities
Of a fourth-class post Office Many for
eigners. he says, who now remit to New
York banks will patronize the postal
banks with their guarantee of the gov
eminent for safety of deposits.
One postmaster says his is the largest
village in New York state, has no bank
of any kind and does a money order
business of $1,000 a month Another in
Colorado writes that his town has a pop
ulation of between 1900 and 800 coal
miners, who desire some safe depository
in which to place their earnings. post
master in large place i'm Illinois writes:
Our people are without any bank. and
they are anxiously awaiting the estab
lishment of postal savings bank here"
Anxious About His Bond.
A postmaster at a big western city
wants to know il his bond will be in
creased in the event of the establishment
of a postal savings bank In his city. He
is presidential postmaster and will not
get additional compensation for the in
creased work and responsibility, and he
wants to know il he is going to be bur-
dened with additional expense
An interesting situation has developed
In the state Of Washington in connec-
ton with the postal savings banks law,
according to Chief Clerk Weed of the
Post Office Department. A postmaster
at one of the large Offices In the state
has written to the Postmaster General
| to know If state, county or municipal
warrants and street improvement bonds,
both regarded In the far west as gilt
edged" securities, will be accepted by
| the trustees as security from banks
| in the state of Washington designated
as repositories under the law. He
as there are few in existence in the
state, and they will be found in the
hands of investors. Nearly all the
Indebtedness of the state. counties or
municipalities. he writes, is represented
| by outstanding warrants issued within
| the legal limit provided by law. The
| issue of such warrants. he states, is
made according to a system generally
adopted in the far west, which cor
responds to the system Of issuing
| bonds in the eastern cities. They are
| just as good as any bond, he declares,
and are absolutely safe, being alb
! solute lien on all the taxable property
in the state, county or municipality.
Street Improvement Bonds.
Another class of securities to which
| he refers as being las good as the
warrants consists of street improve
ment bonds of any city regularly is
sued according to law. The law of the
state provides that no improvements
shall be made wherein the assessment
exceeds SO per cent Of the taxable value
of the property. The form of such as
sessments prohibits taxation assess
ment to exceed 60 per cent of the actual
| selling value of the property. If put up
at public auction. AS general rule,
| II is explained. property is not as
sessed for taxation at more than 80 or
| 40 per cent of its true value, and most
of il at not more than 20 per cent of
that value. Street improvement bonds,
he says. run for from five to ten years.
| and draw from to per cent interest.
II bonds run five years. one-ffth o.
the principal with interest on the
| whole sum. must be paid annually; If
they run ten years, One-tenth of the
principal and the accumulated interest
on the whole must be paid annually.
These annual payments. he states, are
assessed the same as taxes. The bonds
are a lien on abutting property not TO
exceed from one-tenth to one-twentieth
of it's actual value. They are in active
demand, he writes. in all banks. top
notch securities, and are generally re-
garded as good government bonds.
| The postal savings banks law requires
the securities to be given by bank de-
positories to be public bonds, or other
securities, supported by the taxing
| power" and sufficient to insure the
safety and prompt payment of deposits
on demand.
The question raised by the postmaster
will be considered at the proper time
by the Postmaster General. the At
torney General and the Secretary OF