The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-07-06
HAYS PLANS TO
EXTEND POSTAL
SAYING SYSTEM
Postmaster General Would Put
Billion Dollars in Circu-
OUTLINES HIS NEW PLAN

SulllVdH lnO., July "a DllllOH uOl-
lars which should be in circulatiom to
assist the coming industrial revival is
being boarded in American stockings,
Will E. Hays, postmaster general, de-
clared today in announcing plans for
revision of the postal sayings system,
to make it more attractive to potential
depositors.
Through his reorganization plans,
Mr.. Hays hopes to draw the boarded
wealth of the country out of its hiding
places and into useful channels. The
present treatment of depositors in the
POSTAL savings bank, he said tonight
after conferences with middle-western
bankers, amounts "almost to fraud
while the government has profiteered
ct the expense of the depositors to the
sum, in the last year alone, of $780,
600. s..
His general plan of reorganization,
which will be submitted to Congress,
has been approved by bankers east and
middle-west at conferences held in
Washington, New York, Terre Haute
and at his home here. Mr.. Hays as
sured the bankers that he had no in
tention of entering the postl savings
bank in competition with private saw
ings banks, but rather hopes to make
it valuable feeder of established
banking Institutions While asking
Congress to make the interest rate
double the average paid now, he point
ed out it would still be below the aver
age paid by the mapority OF savings
banks.
Private banks are not and cannot
hope to reach the vast boarded wealth
which offers a. wide field fer postal
service, Mr.. Hays said. He pointed
out that seventy per cent of the pres
ent 5O8,000 depositors are OF foreign
extraction and that%they are well as
others of their countrymen who are
accustomed to postal savings systems
abroad, will trust no one but the Unit
ed States government.
To reach this field of potential de-
positors, Mr.. Hays plans the following
basic changes in the present postal
system:
l. Increase the interest from two to
three per cent.
2. Payment of interest on deposits
held less than one year.
g. Removal of the restriction against
depositors under ten years of age.
4. Provision for joint and trust
funds. - .ss ,s
: 5. Establishment of postal banks in
$4,000 postoffices instead of the pres
ent $500. -.
s. Compensation for fourth class
postmasters on the basis of the de-
posits they handle.
T. Re-deposit of the funds in local
banks with more liberal qualification
rules for such depositaries.
s. An enlarged board Of directors
including a representative Of the Fed
eral Reserve Bank and possibly one OF
! more civilians.
There is a lot of business in this
country that is really sick, still stag
gering under the shell-shock of wal
and the debauch of extravaganza Mr.
Hays said, "but there is good dea
more than is merely malingering. Wha
we need more than anything else is tn
common sense of courage and conf
dence. There is, of course, the great
est era of expansion and prosperit.
ahead that the world has ever seen
Every one knows this and the onl
question discussed is, when it will
start. Well, it is time to go out an
meet it. This we propose to help t
Ido."