New-York tribune., 1910-12-02
POSTAL BANK PRELIMINARY
City Bank Circular Describes
Progress on New System.

The December circular OF the National
CIIy Bank describes in part as follows
the progress made in .the perfecting OF the
new postal savings bank system
II has not been definitely determined as
10 how far il would be wise TO 60 in ac-
from depository banks The law is man
Gatory upon the trustees TO accept from
solvent banks public bonds or other Sc
curitieS supported by the taxing power
but it gives 10 the board wise discre-
ton in the matter of approval, and
charges them with the duty OF deciding
securities.
Carrying out what is believed TO be the
clear intent OF the law. the trustees have
decided that all banks under either ma
tional or state supervision in Z community
where postal savings bank has been es-
tabiished shall. upon application. receive
Z pro rata share of the postal funds de-
posted, on the basis OF their combined
capital and surplus
The trustees have given much considera
Jion TO the question of allowing interest
on interest The law has been interpreted
IS lnh-biting such payment and therefore
GepOsitors will not be allowed interest on
aCcumuia aJed interest except the same be
Withdrawn and again deposited as an
original deposit.
The trustees have definitely concluded
TO accept the recommendation of the COM
mIttee appointed by the Postmaster Cen
eral TO substitute a certificate OF deposit
fer the passbook plan, which was under
has . $50 been decided, at least tentatively,
not to undertake the issue Of these certlI-
icateS with coupons attached as that plan.
il is thought, would ne cumbersome and
unnecessarily expensive III its operation
Just when additions 10 the forty-elSht
offices already ordered established viii be
made depends largely upon the action OF
Congress in the matter of an approprld-
lion. The system. if established in one
large city in each of the forTyelght states
ana territories. would involve an expense
-s- IN excess of the amount available Tor
tine Tur- 5pse. The trustees therefore were
compelled 70 locate their first Offices i'll
rna smaller towns, having in mind con-
regarded a. typical OF many others WIN
-ousidera ble proportion Of their popula-
tion employed III mills. factories and
mines
The President during his recent visit
10 Panama il is uuGerSI 3OG, expressed his
regret that the new system could not he
J1uT into operation in the Canal Zone and
II n not unlikely that he viii suggest 70
Congress IN his forthcoming message. or
before the adjournment OF the approach
ing session. the wisdom Of extending the
new system 10 that territorr- As the Law
now stands il limits its operation to the
niteG States and its territories, ana Spe-
cifcallv declares that the word terri
tories shall be held to include the Dis
trict Of Columbia. the District of Alaska
and Porto Rico No provision Is made,
therefore. for either the Canal Zone, the
Philippine Islands. OF Hawaii. and il is
said 70 be more than likely that II the
SvSfern about 10 he installed proves a
success Congress may be asked to re
move the Iinlita tons TO include
these other territories. The postal SyS-
ten or the Canal Zone * not under the
jurisdiction Of the Postoffice Department.
ment through the Panama Canal Com
mission.