The Birmingham age-herald., 1921-07-04
FLAMES STOCKING FOR SHORTAGE OF
 BILLION IN CASH
Hays Announces Plan for Re- organizing Postal Saving System, Which Has
 Bankers Approval
By Associated Press

Sullivan, Ind, July s.-7A billion dollars which should be in circula- ton to assist the coming industrial revival is being hoarded in American stockings, Will H. Hays. Postmaster General, declared today in announc- ing plans for revision of the postal savings system to make 1t more at tractive to potential depositors.
 Through his reorganization plans, MT. Hays hopes to draw the hoarded wealth of the country out of its hid ing places and into useful channels. The present treatment of depositors in the postal savings bank. he said | tonight after conferences with mid dle western bankers. amounts "al- most to fraud" while the government has profiteered at the expense of the de epositors to the sum in the last year alone of s1.72o,ooO
 Bankers Approve Plan
 His general plan of reorganization which will be submitted to Congress has been approved by bankers of the east and middle west at conferences held in Washington, New York, Terre Haute and at his home here. MT. Hays assured the bankers that he had no intention Of entering the postal savings bank in competition with private banks, but rather hopes to make valuable feeder to estab- I1ished banking institutions. While |lasking Congress to make the interest rate double the average paid now, he pointed out, it would sti1l be below the average paid by the majority of savings banks.
 | Private banks are not and cannot hope to reach the vast hoarded wealth which offers a particular field for postal savings expansion, Mir. Hays said He pointed out that |T0 per cent of the present 50S.0o0 de- |lpositors are of foreign extraction. Hand that they as well as others of their countrymen who are accus- Itomed to postal savings systems abroad, will trust no one but the Limited States government. Proposed Changes
 To reach this field of potential de- positors, MT. Hays plans the follow- ing basic changes in the present pos tal system:
 1. Increase the interest from ? to B per cent.
 9. Payment of interest on deposits held less than one year
 8. Removal of restrictions against depositors under 10 years of age.
 4. Provisions for joint and trust funds.
 g. Establishment of postal savings banks in 50,000 post offices, instead pf the present 6,30o.
 8. Compensation for fourth class postmaster on the basis of the de- posits they handle.
 7. Redeposit of the funds in local banks, with more liberal oualifica- tion rules for such Repositories.
 8. An enlarged board of directors, Including a representative of the Federal reserve bank and possibly |one or more civilians.
 Business Still Sick
 There is a lot of business in this country that is really sick, still stag gering under the shell shock of war and the debauch of extravaganee, ' Mir. Hays said, "but there is good 1eal more that Is merely malingering. What we need more than anything else Is the common sense of courage and confidence. There is, of course, the greatest era of expansion and prosperity ahead that the world has bver seen. Everyone knows this, and he only question discussed is when [ will start. Well, it is time to go put and meet 1t. This, we propose to help to do."
 The Postmaster General declared Fhat the hundreds of thousands of postal savings depositors are prac- Eically being defrauded because heir certificates specifically state hat per cent interest Is being paid pm deposits, and do not state that hothing is paid on deposits held less than one year. Because of this sys- tenn. he said. the average interest paid on all money held was only 1s Der cent