The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-12-05
THE POSTAL BANKS.


operation the postal savings law are
beginning gently upon it. They do not
take the large business centcrs in any
State IN which to begin In Utah, Provo
is selected. In the East such places as
Cohoes New York;. Ansonia (Connecti
cut). Rutherford New .Jersev) and
Norwood (Massachusetts) are selected.
lhe reason for this is supposed to be
that the postal officials do not want TO
be overwhelmed with work to begin
with. They want to begin easy. so as
mol to get swampcd, In this no one
VIII blame them, but il seems curious.
Just the same. One would suppose that
they would want TO give al least = few
active business places the benefit of
this new law.
There seems to be good deal of un.
certainty as to tho application of this
law IN number of different directions.
A disturbing element is that which pro.
'ides Tor the absorption of the deposits
ID united States bonds bearing two and
a half per cent interest The Govern.
ment heretofore has been able 10 float
al par its bonds at two per cent. Il
could not do this now. but there seems
TO be no reason why it should fix an
apparently insurmountable obstacle IN
the way of future fIotatiop of bonds
bearing two per cent? for If the Gov.
ernment obligates itself TO pav two and
halt per cent TO postal savings bank
deposltors, it will not be able to float
two per cent bond in the market. and
SINCE the Government only obllgates it.
seIf IN the first place 10 pay two per
cent on these postal deposits there
would seem to be no reason WHY il
should raise its own bid a half of one
per cent. Five per cent of the denosits
must be withdrawn by the trustees and
kep' WIN The Treasurer of the United
states at Washington as reserve. and
not exceeding thirty per cent "may
at any time be withdrawn from tbe
banks by the trustees for investment in
bonds or other securities OF the IJnited
States. Ii being the intent of this act
That the residue of such funds amount
ing TO slxtv-five per cent thereof shall
remain on deposit in the banks in each
State and Territory willing to receive
them, and shall be working balance
and also fund which NAV he with
drawn Tor investment in bonds or other
securities of the United States, but only
by direction of the President. and only
when IN his Judgment the general wei
fare and the interests of the United
States so require
So that the whole matter of deposit
ing the postal savings accommodations in
The banks is queer tumble First of
all, the proposition is that the banks are
not safe place in which the deposItors
can put their money. so we have to
have postal savings banks; but second |
the United States will put the money |
IN those same unsafe banks as fast as
Vt gets the deposits. Then. the deposi.
tor can at his own option surrender his |
certificate of deposit to the Govern.
ment in sums of twenty dollars and
thereof, up TO one hundred |
dollars, and In multiples of one hundred
and five hundred dollars, and receive
IN lieu thereof Government bonds at
two nnd a half per cent This is clear
ly bid on behalf of the Government
for those deposits for its own use Next.
the President, whenever in his mdg
ment the interests Of the Government
require, can withdraw all the sixtv-
five per cent deposited in the banks.
and issue in its stead bonds Of the Gov
crnment. Thus, save for five per cent
deposited in Washington, the whole sum
deposited, even the thirty per cent that
the trustees are al liberty to withdraw
md put in Government bonds, NAV he
transferred INTO Government loan.
1t is evident, therefore, that the
of the postal savings banks
viii be toward keeping the Nation in
debt permanently. Not only so. but
his debt will be subject TO increase all
the time, not at the will or need Of the
iovcrnmont, but at the will and
pleasure of the depositors; because
,he law gives them the full lib
srty to change their deposits into
Government bonds at any time
hey may see fit. This option on the
part of the depositors, together with
he liberty Of the trustees to invest
,hirty per cent i'll Government bonds
ind the power conferred upon the presi
lent to Withdraw sixty-five per cent
rom the banks and deposit that also in
government bonds. makes it a pretty
binding proposition as against the Gov.
There will be no clear or re
serve money, only the five per cent re
lnIred To be deposited in the first place
With the Treasurer of the United States
1T Washington. All the rest in one way
,r another, and largely in WAYS out
'ide the control of the Government. can
De transferred To Government bonds.
Z 1T should turn out that such immense
amounts of money as has been surmised,
ire to he deposited in the savings
,anks, then the Government debt not
'nly will not decrease, but will be sub
ect TO enormous initiation whether the
M orfo IN,