The herald and news. [volume] (Newberry S.C.) 1903-1937, 1911-01-20
POSTAL DEPOSITS
SUBJECT TO TAXES
PROBABLY LIABLE UNDER USUAL
STATE LAWS.
= Many Other Interesting Questions Are
Arising in Connection With New
Financial Institutions.

The question whether or not de-
posts in postal savings banks are
subject to local taxation has been en-
gaging the attention of the board Of
trustees having in charge the opera
ton of the system, says a Washington
special to the Columbia State. The
question has been put by several of
the postmasters at offices which have
been designated as repositories for
postal savings.
r It is expressly provided by the law
3 establishing the banks that the 2 -
per cent. bonds ISSUED by the govern
ment in connection with postal say
ings shall be exempt from all forms
of taxation. No mention is made,
however, in the law as to the taxa
tion of the open deposits with the
postal authorities. In some States
the taxing officials have brought up
the question Of the liability of such
deposits for taxation, ard the advice
of the department here has been
sought by the postmasters concerned.
Subject to Local Taxation.
While the postmaster general has
made no official statement in regard
to the matter, it is stated at the de-
partznent that the view of the officials
there is that deposits are probably
liable to taxation by the local authori-
ties. The question may not be raised
/ in some of the States, but it has al
fready been brought up by some Of
them and will probably be decided in
a. short tine. It is understood that
each State may decide for itself,
through it's tax ofici2ls, whether or
not it wishes to levy the usual per-
sonality tax on postal deposits, where
the State law taxes deposits in State
or national. banks.
The board of trustees, in addition to
the formal reports of the operation OF
the postal reports of the operation OF
the postal bank system, is receiving
number of novel questions from the
postmasters in charge of the institu-
tions. The reports are made daily to
. the Washington author S.
No Deposits by Mail
One of the Offices in the Middle
West reports that it has received va
rious remittances by mail, ranging
from 20 cents to $500. All of these
have to be returned to the would-be
depositors, because of the require
ment that the depositor's~ signature
shall be affixed to the duplicate GER
tifcate which is retained by the post
master. Besides, deposits must be in
even dollars, except where the de-
positor purchased the special ''Dostal
savings stamp" which can be turned
in when he has secured 81 worth.
: An arrangement has been made in
some instances, however, whereby de-
posts of several persons may be made
by a. single messenger, without the
necessity of the depositors appearing
in person to sign the duplicate certl-
fcates. This is made possible by the
postmaster's retaining the original
and duplicate certificates, both OF
which may be signed later by the de-
positor, at-his convenience, and the
original then delivered to him.
Will Address School Children.
So great has been the interest TAX
en- by the school children at Bruins
wick, Ca, in the opportunity afforded
by the postal bank in that city for
the saving of their nickels and dimes,
that the postmaster has asked per-.
mission of the school authoritazs to
deliver an address to the pupils ex-
planning to them thoroughly the work
ings of the systez the. ad7a''=
moneG- Reports from Gulfport, Miss
areAso to the effect that the children
AZ particularly enthusiastic over the
of laying up their savings at the
etof!ce. A growing interest in the
stem is indicated in all parts Of the
untry, according to the chief clerk
the postofFice department, secretary
the board of trustees, to whom the
ports are made.
In many instances the postn2asters
ell in their reports, which are not
Altogether formal, of deposits made by
persons who have no faith in banks,
either from excessive caution or be-
cause Of losses, sustained by them
selves or their relatives in the past.
Most of these depositors are women.
Banks Existence Ignored.