The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1914-10-21

Those Who Wish May Put $1,000 to
Their Credit Instead of $500, as Here
tofore-OnIy one-half Of This Money
Is Interest Bearing-Funds Are Al
ways Redeposited by Government.
Washington.-"All over the country,
more especially in New York and other
large cities, postmasters report that
under existing law they turn away a
much larger amount of money offered
for deposit in the postal savings system
than they are authorized to receive. or
the $45,O00,0OO now on deposit approx
imately $6,000,000 was turned over to
the care of Uncle Sam by patrons OF
the New York postoffice. Under the
provisions of the bill recently passed
by the senate and house, postmasters
will be in position to accept many de-
potts which they must now turn away.
This should cause the deposits In the
postal savings system to increase very
rapidly"
Alexander Nj. Dockery, third assist
ant postmaster general, who has gen
eral supervision Of the postal savings
system, made this statement, and
said:
Patrons of the postal savings system
must not be disappointed If they find
that they are unable to deposit 81 ,O01
Immediately after the bin has received
the approval of President Wilson
While the limit of deposits which al
individual may have In the system Ii
increased from $500 to $1,000 by the
bill, only $500 Is interest bearing. Be
fore any non-interest bearing deposits
can be received the department mus
prepare and issue a new set of certifi
Gates and books. Work on these is bp
ing rushed, however, and they VIII b,
ready for issue with the least possibl,
delay.
when these new certificates arr
ready an individual may acposit 81 ,00'
at one time, one-half Of which will
draw interest. Separate certificates vii
be issued for the interest bearing anC
non-interest bearing deposits, although
both may be made at the same time
Meanwhile, Immediately after the bill
is signed and becomes law, the public
will be notified through the press, ant
individuals may deposit as much al
$500 at one time or enough more thar
they may now have on deposit to brint
their interest bearing account up to tn,
$500 limit.
while the new bill fixes the limit o.
individual accounts at $1,000, patron;
OF the system may purchase postal saw
ings bonds with their savings every
six months. For this purpose both the
interest bearing and non-interest bear
ing deposits will be available. Posta
savings bonds pay 21a per cent b.
turning their deposits into postal saw
fngs bonds every six months individ
ual depositors may lay aside $1,000 ,
year IL they care to do so and have ths
guarantee Of the government behind 1
plus 21a per cent interest.
while bankers opposed the enact
ment of the original postal saving'
law, they have come to realize that 4
is one of the best things that ever hap
pened for them. As rule, the none,
which Is deposited in this system woult
not have reached the banks and woult
be kept out Of circulation. Now it goel
into the banks in the communities II
which it is deposited, the banks payinl
21a per cent for its use, while the gov
ernment pays the depositors per cent
One reason for having $500 made non
Interest bearing was the fact that
has been found that the one-half pc
cent paid by the banks for redepos
its over and above per cent paid t.
depositors does not quite pay the oper
ating expenses Of the system
"This will be splendid thing 70
business at a time when money 1
needed. 1t will help the banks in smal
towns as well as in cities, since tn
money Is redeposited as close as pos
sible to the point where it is placed Il
the postoffice This distribution o
postal savings funds among the bank
Is absolutely free from favoritism.
is done automatically, and political p,h
| does not count particle"