The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-11-07
Postmaster General, Secre-
tary Of Treasury, Attorney
General and Committee Are
Working Out a System.
RULES EXPECTED TO
BE NEARLY PERFECT
Banks will Be Conducted
Strictly on Banking Lines
Openings Of Accounts Will
Be Quite Simple.
american News Service)

american News Service)
Washington, Nov. THE law Great.
ing postal savings banks. which was
signed by President Taft. June 30.
last. will become operative within a
few weeks. Since the date of the ap-
prevail of the law tho Postmaster-Gen
eral. the Secretary OF the Treasury
and the Attorney General, who con-
stitute the board OF trustees. have
been diligently at work. assisted by
. special committee OF employees of
the Postoffice Department appointed
by the Postmaster-G General. to perfect
the details for putting the postal
banks In operation.
The special committee has had the
advantage of the laws governing the
postal savings banks in Great Britain.
France, Austria. Italy and other coun.
tries. the result being that the rules
and regulations to govern the postal
savings banks in the United States
will be ~ well nigh perfect as Is pos.
sible.
70 es No Pass Books.
The postal banks will be conducted
on strictly banking lines with the ex-
ception that there will be no pass
books. certificates Of deposits being Is
sued in duplicate. The opening Of an
account will be very simple pro-
ceeding. Any person ten years OF
age, or over may open an account In
his or her name for one dollar. The
same privilege applies to married
woman whose account shall be free
from any control or interference by
Ne: husband" Like the dime savings
bank, however. you may begin your
recount with Uncle Sam by buying a
ten cent postal savings card. When
lou have purchased nine other postal
rawlings stamps which the postmaster
lrs attached to your postal savings
card. you will receive In exchange a
certificate OF deposit. The postal saw
ings stamps are then destroyed by the
roztmaster. The POstmaster-General
las already ordered 100000 postal
eavings cards and 100000 postal
savings stamps with which to begin
business. No one may deposit more
than $1,000 in any calendar month
while the total balance is limited to
$500. Furthermore no person shall at
the same time have more than one
postal savings account In his or her
own right. No obstacles are placed
IN the way of any dcpositor from
Withdrawing the whole or any part of
hts or her account, with accured in
tercst on demand. under such regula-
tons. as the board of trustees may
prescribe.
Depositors will be paid per cent.
interest yearly. The postal funds
placed In designated banks by the
board Of trustees will yield the gov.
eminent ~ per cent. 1t is believed
that this quarter Of one per cent. diff
ference between what the government
pays the depositor and what the
banks will pay Uncle Sam will be suf-
fIcient to meet all necessary expenses
for conducting the postal savings de-
positories.
A careful study Of the law creating
postal savings banks makes 1t clear
that the government will be benefited
largely. and that within year or two
after the system has been In operation
Uncle Sam may have all the money
necessary to meet deficiencies. and to
mako effective public improvements
without having to appeal to Wall
street for financial aid. Section ten
Of the act gives depositor the privi.
lege Of surrendering his deposit. or
any part thereof. In sums Of twenty.
forty. sixty. eighty and a hundred dol.
lars and multiples of one hundred and
lieu OF such deposits, U. s. coupons or
registered bonds of the denominations
Of these amounts. which shall bear
interest ut the rate OF 2h per cent.
per annum, and be redeemable one
year from date OF issue, and payable
twenty years from such date. These
bonds are payable In gold coin. It Ia
believed by the board OF trustees that
this section Of the law will prove
strong inducement to the people
and especially the foreign element. to
ratronixe the postal banks. 1t will
also add to the desire OF children to
put away their pennies so that they
may buy q government bond.
start Of Move:.:-e.
The agitation for postal savings
banks in the United States beg in
1871. when Postmaster-G General Cros
well strongiy recommended the es
tablishment OF such banks in his an
nual report to the president. From
this time the subject has been mere
or less dealt with by Postmaster-Gen
erals. Great Britain began considers
tion Of the proposition to use post
offices ~ repositories for savings In
1907. but II was not until 1861 that
the British postoffic savings banks
came into existence. The history Of
the British postal banks proves that II
has been most successful. and most
other countries soon followed Great
Britain's lead. The data obtained by
the special committee OF employees ap
pointed By the Postmaster-0 General
shows that in every country where the