Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1911-10-04
POSTAL SAVINGS AND CANAL BONDS.

Without setting himself down as a positive
optimis Secretary e-Treasury MacVeigh has
nothing but good reports to give out on the pres
ent banking situation and is extremely hopeful
as to the outlook for general business The coun-
Try, he thinks Is SIMPLY pausng to take breath
after the headlong flights of 1906 and 1909 "a
setback was inevitable and ought to be Of i'm
mense good. This is true enough, of course, but
the average business is still wondering how
long the setback is to continue before it gets
turned back i'll the opposite drecton-the high
way to good times. In the matter of some de-
tails the secretary adds in a statement given ont
at Boston,
The banking situation, from the reports
that | hear, is sound enough and the ma
tional treasury is Easy street Nothing
new this fall is contemplated with govern
ment finances. The $50000,000 bond issue
came out at the psychological moment and
was huge success, so that further govern
ment bond issues are distinctly improbable
for year
The stem-winder success of the new postal
savings banks may, however, eventually ex-
petite the funding of the moneys due from
the government on the Panama canal work.
now some $20O,000000, by providing an out
let for the issue.
An official statement fro mthe chief of the di-
vision OF finance i'll the postoffce department set
down the deposits in the United States postal
savings banks as approximately $2000000 on
AUGUST zo-an average OF about SlOUO each Tor
the two thousand such banks now doing business
Under the law it is provided that when postal
savmgs-bank deposit bearing 2 per cent interest
has reached certain amount it may be eX-
changed for a Panama canal bond bearing 21@
per cent interest-this is, at least, the manner in
which the general provision Of the act applies in
practice. No department report has as yet been
made as to the amount of postal deposits, if any.
that has thus become invested in canal bonds; if
any OF the money has been exchanged in that
WAY, the aggregate is presumably very small if
every dollar of these deposits has been exchanged
for bonds-whch is, Of course something quite
out of the question: would mean that only a
one-hundredth part of the $200000000 canalbond
issue has far found an 'outlet" through the
postal savings banks The outlook for such an
'outlet for the issue would not therefore appear
to be very promising
If present plans of the postofice department
are carried out by the postal savings-ban trus.
tees, there will by January l of next year be
government bank in every frst-class, second-class
and third-class postoffce in the United States
There are between seven and eight thousand of
these. Suppose we call it, for convenience eight
thousand and set the present average Of deposits
$1,000 for each postal bank as the average for
the eight thousand banks next January. That
would mean average postalsavings bank deposits
OF TS,O0O,00O for the entire country. Suppose if
were all to find its way, sooner or later to in
veStment in Panamacanal 2la per cent bonds
that would mean only one twenty-ffth Of the
issue disposed OF through the postal-savings bank
channel
1t would be good many years before Pan
ama-canal bonds could all be foated in that way.