Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-07-17
NEW POSTAL BANKS
Will Open August ! at First
Class Post Offices.
NOT NAMED
May Be Included in List, However,
Before It Is Completed-Many
Problems to Solve.

Principally because of the large number
of foreign born residents In New York,
Chicago, Boston and ST. Louis, Postmaster
General Hitchcock has announced that
the first installment of postal savings
repositories at flrst-class post Offices
would include those cities and would be-
gin operations August 1. The foreign
born population Of New. York is said to
exceed 100000, Of Chicago 100000, of
Boston 100000 and OF St. Louis $50, 900.
From each Of these cities immense sums
of money are sent abroad by money
order yearly by these residents Last
year $5.5OO.OOO was sent from Chicago.
S. JOO.OOO from Boston and $1,OOOO 900
from ST. Louis. 1t is the belief of the
Postmaster General that much Of this
money will find its way into the postal
savings repositories. where the govern
ment faith Is pledged to its security.
Washington has not yet been desig
mated. but 1t Is believed 1t will be in
cuded In the list without doubt in the
very near future. 1t was explained at
the department today that the conditions
cities already named. and that there has
been extraordinary pressure brought to
bear for repositories in them.
SOStdSACS al Ao& &c S4tACOs
Upward of a thousand repositories have
been established at the secondclass post
offices Of the country. and there was not
found much difficulty in shaping up the
conditions. But in the large cities, with
their greater population and commercial
Importance, many obstacles are met with.
has been the hostility of the general
banking system to the new postal saw
ings system. The experience at the
second-class Offices has almost entirely
eradicated this opposition. The reason
for this Is the provision of the law, not
generally heretofore understood that
postal savings funds received in the de-
| positories are required to be deposited in
the banks. whether organized under state
/ or national laws. provided they are SOW
ent and subject to proper supervision,
while but 5 per cent Of the funds are per-
mitted to be withdrawn by the trustees
| of the postal savings system and Kept
with the treasurer of the United States
| The law requires also that the funds
| received for deposit at the postal savings
depository must be deposited in ba inks
| located where the depository Is located.
substantially and in proportion to the
| capital and surplus of each such bank.
| This makes the capital iand surplus of a
bank a factor in securing the deposits
and guards against favoritism toward any
bank at the expense OF the others.
The board of trustees is required to take
| from the banks selected "such securities
| in public bonds or other securities, sup
ported by the taxing power as the board
| may prescribe. approve and deem suft1-
| cient and necessary to insure the safety
| and prompt payment of such deposits on
| demand" This does not mean that the
| responsibility for the deposits to the de-
positor has been shifted from the govern
ment to the banks. The law expressly
pledges the faith Of the United States to
| the depositor But 1t does make diff
ference to the banks themselves. because
by this provision the postal savings Of the
country get into the general banking cir
culation.
| Additional Safeguards.
| This provision therefore imposes addi-
tionaI duties and RESPONSIBILITIES on the