Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-07-04
BANKS
HOLD A BILLION
DOLLARS HAYS
Postmaster General An
nounCes Plans For Re-
vision of Postal Savings
System of the U. S.
tBy The Associated Press.)

Sullivan, Ind, July 3.---A billion
dollars which should be In circu-
lation to assist the coming indus
trial revival, is being boarded in
American stockings, VIII H. Hays,
postmaster general. declared today
in announcing plans for revision Of
the postal savings system to make
1t more attractive to potential de-
positors.
The present treatment of deposit
ors in the postal savings bank, he
said tonight after conferences
amounts almost to fraud" Will
the government has profiteered 4
the expense of the depositors to 49,
sum, in the last year alone, of e >
720, 900, he added.
Bankers Approve Plans.
His plan of reorganitS z ,
which, will be submitted tS :
gress. has been approved b6S ~
ers east and middle wao =.
Hays assured the banker 4 ! .ne
had no intention of ent 81 nto
competition with priva ) ! mgs
pllihoy puL 1lOpGu Ollly tliC
postal bank feeder OF , ,ished
institutions. He pointed 6~t that
doubling the present interest rate
would still leave 1t below the aver
age paid by the savings banks.
Private banks cannot hope to
reach the vast boarded wealth
which offers a particular field for
postal savings expansion, Mr.. Hays
explained. Seventy per cent of the
present 50S,000 depositors are of
foreign extraction, he said, and
they will trust no one but the
United States government
Hays Outlines Plan.
Mr.. Hays plan is as follows:
Increase the interest rate
from two to three per cent.
Payment OF interest on de-
posits held less than one year.
3-Removal of the restriction
against depositors under ten years
|of age.
4-Provision for joint and trust
funds.
Establishment Of postal saw
ings banks In $4,000 postoffices in
stead of $500.
6-Compensation for fourth
class postmasters on the basis Of
the deposits they handle.
7-Redeposit of the funds in
local banks with more liberal
qualification rules for such de-
positories.
8-An enlarged board Of direct
ors, including q representative of
the federal reserve bank and pos
sibly one or more civilians.
Lot of Business Is Sick.
There is q lot of business In
this country that isreally sick, still
staggering under the shell shock
Of war and the debauch of extrav-
agance," Mr.. Hays said, "but there
Is good deal more, that Is merely
malingering. There is the greatest
era of expansion and prosperity
ahead that the world has ever seen.
Every one knows this and the only
question discussed Is when 1t will
start, Well, 1t Is time to go out
and meet 1t. This we propose to
help to do.
"The postal savings system must
be reformed. With $161, 600 900 on
deposit last year from 508,000 de-
positors and with the law provid-
ing that 2 per cent interest be
paid, the government, because of
the system, paid less than one-half
per cent interest to those deposit
tors and by depositing at Ia per
cent interest made net profit |
over all interest payments and ex-
penses of $1,720, 600.
Was sheer Profiteering.
This was sheer profiteering. |
The certificates issued unequivo-
cally pledge per cent interest and |
fail to say anything whatever about |
no interest being paid If the de-
posits are not left for a year. The |
postal savings has not scratched |
the surface, Notwithstanding the |
magnificent conception of public |
duty that inspired It's founding.
I'VE do not want depositors from |
savings banks, but there Is tre-
mendous .rded wealth In this |
country, estimated by many well |
informed at billion dollars. which |
Continued on Page Twoo