Evening star., 1921-11-06

L
way of the amount which is being
| used for covering up illegitimate
| transactions. There is no doubt but
| that this has had considerable in
fluence on the present condition of
monetary affairs
| Asked for a suggestion as to how
this situation can be relieved, Rep
resentative McFadden said that the
| surest way as he sees it is for a more
| careful scrutiny Of such transactions
to be made through the bureau of in
] ternal revenue, by examining closely
| the records Of properties bought and
| sold.
He argues that less than ever before
IS now held in stockings because of
| the fact that foreigners are depositing
IN the postal savings bank and in
sestlns IN United TStates government
| bonds to a greater xtent than here
| tofore. The savings business of both
| national and state banks, he also
| points out. has become very popu-
! lar. and extensive advertising cam
paigns have brought the service to the
attention of tie people, who, in turn,
availed themselves of the opportunity
to deposit their ready money and draw
interest upon it.
ihe thrift campaigns conducted by
the Treasury Department have also
strong influence in inducing the
people not to let money lie idle, but
to deposit in interest-paying institu-
| tions
X X X X
| The banks generally are opposing
the STEVENSON bill, which compre-
hends Postmaster General Hays plan
Tor enlarging the postal savings sys-
tenn, on the ground that it is unfair
| competition and tends to keep the
government in the banking business.
Spokesmen for the banking interests
have argued before the committee
that by advertising the fact that the
government stands behind the de-
positors in the postal savings bank
the government gives notice of un-
fair competition.
| Eugene Meyer, jr., in making his
estimate of more than a billion dol
lars in the family sock, urged that
this money might be brought into
the postal savings system. Secre-
tary Hoover, Otto Kahn and many
! other noted financiers and economists
have been quoted before the hearing
as reciting that during the liberty
! loan rallies throughout the country
the fact of vast quantities of money
actually boarded away in socks and
tin cans and other receptacles was
proved. When aroused by the ferxor
of these meetings many persons
brought in their boards in tin cans
old bags. etc. Some of this money
was actually moldy. damp and
smelly from having laid in close cap
tivity.
These varying estimates as to the
amount of Stacker, money in this
country are made by taking the
amount actually in circulation, de-
Quoting the amount on deposit il,
banks, ETC., making allowance for a
! certain amount carried around in
pockets and then finding that there
| are billions that cannot be accounted
| for.
| X X \
Advocates of undermining the postal
| saving system say that 1t will bring
this money out of the hiding places
and put it to work. They say that
there are many foreigners who dis
trust all private banking institutions
and 50 hide their money away, but
that if they are assured that the
government stands behind their saw
ings placed in the postal savings bank
they will deposit there, because they
had learned to do that same thing at
home.
It is probable that the House COM
mittee will not report out the bill,
fathered by Chairman Steenerson,
representing Postmaster General Hays
lviews, until after December 1, because