The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-08-12
USE OF
Continued from Page One.)


the act that many millions of people
would become postal savings bank
depositors were lot borne out by the
1920 report of the post office depart
ment, which lists only 50S,O00 deposit
tors for the year.
Over 20 per cent of the postal saw
ings deposltors are foreign born,
many trusting no one but the govern
ment of tn United States" as Post
master General Hays stated in a re-
cent address. The deposits last year
totaled only s161, 100000.
Low Interest Rate a Handisap.
Senator Sheppard asserts that the
average native American refuses to
patronize the postal savings bank be-
cause interest on deposits has been
limited to per cent, and because OF
the restrictions on the amount of de-
posits He says that the governments
policy should be an invitation for de-
posts without limit" at a fair in
terest rate.
The senator predicts that under the
proposed reorganiZing act the postal
/ savings bank system would become
one of the greatest financial institu-
tions in the world, "one vast national
reservoir of the peoples savings,
| available for loans to all who furnish
property security"
He predicts that under such an act
| there would be many millions of de-
positors, with deposits exceeding 80
billions instead of $161, 600, 900, as is
now the case.
| Provisions are Given.
The pending industrial savings act
| includes the following principal pro-
visions:
First-The postal savings bank shall
be open and accessible to all without
limit as to amounts that may be de
jposited.
| Second-These deposits shall be
loaned at the market price for money
on acceptable security.
Third-Four per cent semi annual
compound interest on deposits paid
directly to depositors.
Fourth-The balance of profit to be
paid twice a year into the federal
treasury, to make possible the reduc
ton of taxes.
Fifth-Every bank and banking in
! stitution in the United States in good
standing may become agents for the
postal savings, both to receive deposits
and to make loans, receiving for such
service a small commission on both
deposits and loans.
Sixth-The postal savings banl
shall be administered by a board, the
members of which shall be appointed
by the president
Seventh-Any part of the funds OF
deposit may be invested in United
States bonds, bought in the oper
market or bought from the treasure
of the United States, and any portion
of such bonds may be sold in the opeI
market or sold to the treasury.
Not to Compete With Savings.
| Discussing the need of strengthen
ing the postal savings system, Post
master General Hays recently said
Postal savings shall not compete will
savings banks. We do not want de
| positors from savings banks. Blu
there is tremendous boarded wealth
in the country estimated by many wei
informed at 81, 900, 000,0 900. The saving
banks cannot bring it out
, The postal savings has not We
, brought it out. Nothing can bring
out but the faith in the security of tn,
government and a larger interest re
turn on the deposits and the acquaint
r ing of the holders with our purpos
! and their opportunity. This we hop.
t to do. This money is needed in circula
: ton now.
; If $1,000, 100000 can be brought GU
, of stockings and closets and save
: from waste and wild cats it will d
} incalculable good. 1t will make genel
: al bank depositors and ultimate gov
! eminent bond owners out of tn
r timorous; it will give small capital
/ chance for an honest return the sam
! as large capital; it will furnish tn
tonic to conclude the business conva
t escence in the country and will he'll
\ make economy and thrift a nationa
Y trait much needed
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