The Washington times., 1914-01-25
POSTAL SAVINGS
IMPRESS BANKERS
Carter B. Keene'S Talk at Ban
quet Well ReCeiVed-Rob-
erts Mentioned for Board.
By GEORGE H GALL.


The exposition by Carter B. Keene,
| director Of the Postal Savings System,
| of the work and results of the only
banking institution owned and operated
| by Uncle Sam, the savings system of
the PostofiCe Department, voiced at
| the annual banquet of the Bankers
Association of the District of Columbia
| Saturday night made a deeper impress
sion upon the bankers of Washington
than did the discussions of the new cur
| rency law, the Presidents trust mess
age or the attacks on the New York
Stock Exchange. This is the opinion of
many today.
The statement by Mr.. Keene that
there are some 81, 100000 of deposits in
the system, money that the banks could
not have brought out; that all but s.
per cent of this amount is now ctrcu-
lating in the channels Of trade and that
$4,000 of it is on deposit In the banks
of Washington, was a surprise to many
and won the approval of all for the sys-
TEN.
There are $4,000 deposltors in the
Postoffice Bank, explained Mr.. Keene,
and these depositors are foreigners and
others whose money had been boarded
away in boot legs, stockings and mat
tresses. These depositors are people
who have a natural fear of banks and
who yet have an absolute confidence in
the Government.
This is newly discovered money"
said Mr.. Keene, money beyond the
reach of the banks. The Postal Savings
system has brought it out from hidden
corners and put it into the channels of
trade. There is $4,000 of this money
distributed among the banks of Wash
ington which they could not have got
ten otherwise.
The Postal Savings System helps
everyone and hurts no one and is q
Governmental experiment in business
that does in no way detract from prl-
Vate enterprise"
Mr.. Keene explained that more money
is turned away from the postal banks
than is taken in in deposits, for the rea-
son that the amount of deposits Is Inn
tied by law. He advocated legislation
to do away with this restriction and TO
| increase the maximum of deposits that
may be received. In support of this con-
tention Mr.. Keene said that the for
eigner who has saved an amount OF
money greater than the maximum he
NAV deposit at any one time cannot
understand Why the Government will
| take and protect a part of his savings
and refuse to touch the whole. There
should be no need to try to make him
| understand. either, he said.
There is still considerable speculation
| over the identity of the man referred to
| by Senator Henry F. Hollis, of New
! Hampshire, as the man whose name
he had mentioned for the Federal Re
serve Board. Senator Hollis, after max
| ing a careful exposition Of the history
and meaning Of the new currency law
| and paying a tribute to the bankers for
| the patriotic way in which they are CO.
| operating TO make the reserve system
| a success told his hearers that the
| Democratic Senators on the Banking
| and Currency Committee had agreed
among themselves to recommend no one
to the President for appointment TO the
| Federal Reserve Board. He qualified
| this by saying that he had given the
name of a man to the President because
| he regarded him as the best man In the
country for place on the board and
one who had forecast accurately the
form of the present law.
The Senator withheld the name Kit
conversation around the room brought
| out the names of George Z. Roberts.
| Director of the Mint, and DIR. Jacob H.
Hollander. of Baltimore. Senator Hollis
maze II Clear lDdI ne nd1 no
or political interest in the man, but that
| his grasp of the subject and services
were OF so high an order that he felt
the President should not overlook him
in considering the Federal Boards
makeup.
Il am practically certain that Mr.
| Roberts is the man referred to by
| Senator Hollis" said ]. Selwin TAFT
president of the Washington and South
eTn Bank, today.
Senator Hollis paid a tribute to the
work of the Aldrich Monetary Commits
sion and gave credit to the assistance
which this work had been in solving
the problem Of framing the currency
| law.
There were only two dangers he
| feared. one was that the banks had
| been given too much power under it
and the other was that of imitation.
| But, he explained, there is enough in
| telligence and patriotism among the
| bankers to make almost any kind of
law work pretty we'll"
! Both Senator Hollis and Senator
| Shafroth expressed the hope that
| Washington would be designated as the
| location for one Of the regional re-
| serve banks The First Regional Re
| serve Bank and Home of Elastic Cur
renCy" was the inscription upon shield
affixed to a stocking full Of favors and
| money. fake and real, which every
| diner found at his plate.
The two Senators also were extremely
optimistic over the financial and bust
ness future of the country. I'VE will
! have a development unparalleled in the
| history Of this country" said Senator
| Shaforth. land this will be the dom
| inant financial and commercial nation
| Of the world" II think we are on the
! point of an era of prosperity, because