The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-09-13
THE new POSTAL
SAYINGS BANK
REGULATIONS GOVERNING THE
OPERATION or POSTAL saw
INcs REPOSITORIES HAVE BEEN
PROMULGATED BY PosTMAsT.
Err GENERAL HITCHCOCK.

savings pAuk has created interest
among the people Of this city and
locality and throughout the state in the
regulations governing the operation OF
postal savings repositories
The act OF congress, approved June
Is, 1910. and as amended by the act Of
Mar. 4. 1911. prescrtbes that the funds
received at the postal savings deposit
tary offices in each city, town. village
or other locality shall be deposited In
banks located therein. Such banks
shall be willing to receive such deposits
under the terms of the act and the
regulations made the authority thereof
The amount deposited in any one
bank shall at no time exceod the
amount OF paid -in-carttal and one
half the surplus of such bank.
Any solvent bank, whether organized
under the national or state laws. includ-
ing savings banks and trust companies
doing business, which ore subject to
national and state supervision and ex-
animation. may lawfully quality as
depository for postal savings funds
upon compliance with the require
nents Of the act of congress.
Pursuant to the provisions of the
statute the board of trustees of the
postal savings bank, which consists Of
the postmaster general, the secretary
OF the treasury and the attorney
general of the United States, will from
time to time designate such security
In public bonds or other securities,
supported by the taxpaying powers as
1t may deem sufficient and necessary
to insure the safety and prompt pay
ment OF deposits on demand, and will
fix the value of such securities for
such purpose and prescribe the mar
gin to be required over the face amount
OF the securities. The securities so
designated in the amount so prescrib-
cd must be deposited with the treas
urer of the United States.
In recent pamphlet issued by the
board Of trustees of the federal postal
savings bank, banks qualifying as de-
positorfes OF this institution will be
required until further notice is given
to pay interest at the rate of 21k per
cent per annum, payable Jan. and
July each year, upon the average
monthly balances of postal savings de-
posits as shown by the accounts Of the
board Of trustees, based upon the
audited reports of the postmasters
and other accountable officers and
agents Of the postal savings system
authorized to deposit postal savings
funds In such banks. Under authority
contained in the postal savings act the
rate OF interest to be paid by deposit
tory banks is fixed from time to time
by this board Of trustees. the rate
adopted being uniform throughout the
United States.
At a meeting OF the board of trustees
held recently in Washington a resolu-
ton was adopted allowing this board
to take from the depository banks the
securities in public bonds or other
securities supported by the taxing
power, which the board approves and
deems sufficient and necessary to
secure the safety and prompt payment
OF deposits on demand. This rasDlu-
tion was adopted for the purpose Of
governing the qualification of the de-
pository and prescribing the rules
under which the deposits shall be made
with them.
The securities which will be ac-
cepted by the trustees as security for
the safety and prompt payment on de-
mand OF deposits are interesting bear
ing bonds Of the United States, bonds
issued by the government Of the Phil
ippine islands, the bonds of the District
Of Columbia and the government of
Porto Rico. all Of which will be taken
at their par value. Bonds of any
state OF the United States and bonds
of the territory of Hawaii will be re-
ceived at 90 per cent of their market
value. such market value not to be
considered as exceeding par.
Bonds Of any city, town, county or
other legally constituted municipality
or district in the United States which
has been in existence for a period of
ten years, and which for that time, has
not defaulted in the payment of any
part Of either principal or interest Of
any funded debt authorized to be con-
tracted by It, and whose next funded
indebtedness does not exceed 10 per
centfif the valuation of its taxable prop
erty, to be ascertained by the last pre-
ceding valuation for the assessment
of taxes, will be received at rs per
cent of their market value, not to be
considered as exceeding par.
No deposit bonds for less than 81, 900
will be accepted, nor will fractions of
ST. 900 be received The board of
trustees reserves the right to reclassify
the securities acceptable for deposits
or to change the valuation at which
they will be received.
The board of trustees consists of
Frank H. Hitchcock, postmaster gem
eral, Franklin MacVeagh. secretary OF
the treasury and George w. Wicker
sham, attorney general.
The regulations governing the postal
savings banks should be known by
every depositor. An account may be
opened and deposits made by any per-
. son of the age Of 10 years or over, in
his or her own name, and by married
woman In her own name and free from
any control or interference by her
husband, but no person may at the
same time have more than one postal
savings account.
No account may be opened for less
than 81 and no person will be per
mitted to deposit more than 500 In
any one calendar month. nor will
the balance to the credit OF any de-
positor be allowed to exceed $500. ex.
elusive OF accumulated interest.
| Interest at the rate OF per cent
per annum will be allowed and paid
on each deposit which has remained
for at least one year and will be com.
puted only from the first day OF the
month following the day on which the
| deposit was made. The withdrawal o,
a deposit or part Of deposit within
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