The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-01-02
New Postal Banks Will Open
Tomorrow in Every Com
mOnweaIth of Union.
INTENDED TO ENCOURAGE
THRIFT AMONG CHILDREN
New Plan Provides for Sale of
Stamps, but No Deposits
Under One Dollar.


WASHINGTON, Jan. Through tho
practical institution Of the postal savings
bank system on Tuesday. January 3, tho
United States government will give the
people facilities for saving a part ot
their earnings.
The establishment Of these banks is
regarded as the most far reaching finan-
cial step taken by the government since
the authorization of national banlts. and
their operation will he watched with in
terest by financicrs throughout the
world.
The system Is 10 be inauguratcd on a
comparatively small scale One postof-
flee I'm each state and territory has been
selected as a depository, Utah's postal
bank Will he at Provo.
In those forty eight offices. a thorough
test VIII be made. II was decided 10
make the beginning thus small, not only
because no adequate appropriation was
hut also because the plan adopted dif-
fcrs entirely from that OF any other
system In the world,
No Passbooks Given.
The new scheme is tho result or many
months of work by committees of postal
and banking experts, whose efforts were
directed by a board OF trustees consist
ing oil the postmaster general the secrc-
tary of the treasury and the attorney
general.
No passbooks will he furnished deposit
tors. but all deposits will be evidenced
by engraved postal savings certificates
Issued in fixed denominations Of 81. 81,
IS. $40, $50 and $50. each bearing the
name of the dcposiior and the date on
which interest begins TO accrue. The Ger
tlficates are nontransfe rabe and nom
negotiable. Interest will be PAYABLE ar
nually at the rate of per cent per an
nun.
b. the terms Of the law no account
for less than 81 may be opened and no
nerson may deposit more than $10c in
any calendar month or have TO his credit
AT any one time more than $500, eXcu-
SiN" of accumulated interest
Accounts may be opened by any per-
son over 10 years old in his or her own
name, and by married women In their
own usmes. The accounts OF wives can
not be intcrfercd with or controlled by
the husbands
May Buy Savings Stamps.
For the present deposits VIII be linn
itcd TO patrons OF the postoffices at
which the system is established. The
quircd In connection with the opening OF
an account or the withdrawal OF money
deposited.
No person connected with the postof-
close either the name of dcpositor or
the amount Of his deposit, unless d.
rected TO do so by the postmaster gen
nral Deposits may be withdrawn at any
terest alone may be withdrawn.
While deposits Of less than ono dol
lar will not be received, small amounts
may be saved for deposit by the pur-
cents each and Of ten postal savings
stamps which have been specially pre-
pared for the purpose and will be ON sale
at all depository offices. Each postal
savings card contains blank spaces TO
which ten-ccnt savings stamps NAV be
affixed as purchased
The postmaster will accept a postal
savings card with nine ten-cent savings
stamps affixed as a deposit of ono dol
lar, either in opening an account or I'm
adding TO an existing account. This
feature Is expected TO appeal particularly
TO children and to encourage in them
ha bits of thrift.
Can Buy U. S. Bonds.
An interesting feature of the sys-
tom is the privilege accorded a de-
positor of converting his savings in
to United States bonds, to be is
sued in denominations OF twenty, forty.
and multiples OF one hundred dollars up
10 five hundred dollars.
The bonds will he issued in both regis
tered and coupon form and will bear
= u.
able semi annually. The bonds are re-
lcemable at the pleasure of the United
states one year from the date of issue,
both principal and interest being payable
twenty years from date OF issue In gold
,oin: No limit is placed on the amount
IF these bonds dcpositor may acquire
as the bonds are not counted as II part
of the maximum OF $500 allowed one de-
positor.
Most of the funds received from de-
oositors will be placed in local banks
throughout the country so that the
money VIII be available for current com
nercial needs. These deposits Will be
secured by bonds deposited by the banks
With the treasurer OF the United States.
FIVE per cent of the deposits will be
1cld by the treasurer OF the United
states as reserve and the board of
rustees Is authorized To invest 80 per
cent In United States bonds,
Guaranteed by Uncle Sam.
The faith OF the United States is
pledged To the payment OF all deposits
The savings certificate plan OF indi-
'ating deposits was adopted upon the
-ccommendation Of the committee of ex-
2erts appointed last June by Postmaster
General Hitchcock, 1t was found that
he expense OF operating the passbook
system In foreign countries was very
great. tho central office In England re-
inlrlng thc services OF several thousan nd
10 transact tho postal snv-
ngS business
Under The certificate plan the expense
Hrgely Is eliminated. Each certificate is
sued Will speak for Itself. 1t is believed
.hc system adopted will afford every
safeguard provided by the foreign plans.
without their comIAeXity OF detail
\ certificate viii he payable only 10
he person whose name il bears and N
ost may be replaced by a new certificate
upon satisfactory proof Of loss by the
deposition.
Among the postofficcs designated w
Postmaster General Hitchcock as postal
savings repositories arc the following
Ill Of the Offices being Of the second
lass:
Globe. AriZ.: Orovile Cal; I.eadvilIo.
.olo.; Occur d'Alenc. Idaho; Anaconda,
Dr.; Provo. Utah; Olympia, Wash; Lara
ME. Wyo.
II the system adopted proves SUCCESS
ul II is planned TO extend the service
rs rapidly as practicable. In time prob