The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-07-04
PLANS FOR REVISION
" POSTAL SAVINGS.
70 OBTAIN DEPOSITS
Postmaster General Wants to
Attract Coin From the
Hiding Places.
GENERAL PLAN HAS BEEN
APPROVED BY BANKERS
Hopes to Make 1t a Valuable
Feeder to Banking Institu-
tiOns of Country.
(ey Tho Associated Press)

y SULLIVAN, Ind, July 3.--A billion
4 loIlars which should be in circulation to
assist the coming industrial revival is
,eing boarded in American stockings,
RiH II. Hays, postmaster general de-
ared today in announcing plans for re-
,sion Of the postal saving system to make
Il more attractive to potential deposit
.ors.
Through his reorganization plans, Mr..
Hays hopes to draw the boarded wealth
of the country out of it's hiding places
INTO useful channels. The present treat
nent of depositors in the postal savings
bank, he said tonight after conferences
With middle western bankers, amounts
almost to fraud while the government
las profiteered at the expense of the de-
)ostors 10 the sum in the last year
hone OF $1.72O, 900.
His general plan of reorganization
Jhich will be submitted to congress, has
een approved by bankers of the east
nd middle west at conferences in Wash
bgton, New York, Terre Haute and at
Gs home here. Mr.. Hays assured the
ankers that he had no intention of en-
BRING the postal savings bank in COM
,etition with private savings banks, but
Rther hopes to make a valuable feeder
q established banking institutions. While
skiing congress to make the interest
Rte double the average paid now, he
lointed out it would still be below the
Werage paid by the majority of savings
anks.
Private banks are not and cannot hope
D reach the vast boarded wealth which
ffers particular field for postal savings
Npansion, Mr.. Hays said. He pointed
ut that seventy per cent of the present
$4,000 depositors are of foreign extrac-
ion and that they as we'll as others of
heir countrymen who are accustomed to
ostal savings systems abroad, will trust
10 one but the United States government
To reach this field of potential deposit
prS, Mr.. Hays plans the following basic
hanges in the present postal system:
Increase the interest from two to
hree per cent.
Payment of interest on deposits held
sSs than one year
3-Removal of the restriction against
spositors under ten years of age.
provision for joint and trust funds.
establishment OF postal savings in
UuVO postoffices instead of the present
300 ''''
Compensation for fourth class post-
masters on the basis of the deposits they
! ande. '''e'
'-Redeposit Of the funds in local banks
''n more liberal qualification rules for
Neh repositories.
AN enlarged board of directors in
'uuhg a representative of the federal
@ eSef'e bank and possibly one or more
iHere is lot of business in this
ou"Iy that Is really sick. still stagger-
"5 under the shell shock of war and the
Soouch Of extravaganza" Mr.. Hays
"'1' out there is a good deal more that
merely malingering. What we need
-y'e than anything else is .he common
s"se ot courage and confidencs. There
= oi course the greatest era of expan-
W" ana prosperity ahead that the world
aS ever seen. Every one knows this.
@u tne only question discussed is when
eady" 'iiie 70 GET
:. Te postmaster %eneral declared that
-. "l"dreds of thousands of postal saw
sss "epoSItors are practically being de-
80. -" 'ecause their certificates speci-
80 state that two per cent interest
J paia on deposits and 60 NOT state that
~ ing Is paid on deposits held less than
.'s year Because of this system. he
,ar.. lHe average interest 1a!d on all
,sr, 4'e'u was only one and a half Der