The Dawson news. (Dawson, Ga.) 1889-current, 1921-07-12
TO SEEK BILLION HID
IN U. S. STOCKINGS
THE POSTMASTER GENERAL
ANNOUNCES REFORM OF
POSTAL SAVINGS SYSTEM.
GOVERNMENT PROFITEERING.


Amounts Almost to Fraud. Interest
Will Be Raised to Per Cent and
More Banks Opened.
SULLIVAN, Ind.-A billion dol
lars which should be in circulation to
assist the coming industrial revival is
being boarded in American stockings,
Will H. Hayes, postmaster general,
declared today in announcing plans for
revision of the Postal Savings system
to make it more attractive to potential
depositors.
Through his reorganization plans
Mr., Hayes 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 banks, he said tonight
after conference with middle-western
bankers, amounts almost to fraud, }"
while the government has prohteered
at the expense of the depositors to
the sum, in the last year alone,s of
|$l,72OOOO.
Approved by Bankers.
His general plan OF reorganization,
which will be submitted to congress,
has been approved by bankers OF the
east and middle west at conferences in
Washington, New York, Terre Haute
and at his home here. Mr.. Hayes as
sured the bankers that he had no IN
tention of entering the postal savings
bank in competition with private saw
ings banks, but rather hopes to make
it a valuable feeder of established bank
ing institutions While asking congress
to make the interest rate double the
average paid now, he pointed out 1t
would still be below the average pald
by the majority OF savings banks.
Private banks are not and cannot
hope to reach the vast boarded wealth
which offers a particular field for pos
tai savings expansion, MI Hayes said.
He pointed out that 20 per cent OF the
present $4,000 depositors are OF for
eign extraction, and that they as well
as others of them countTymen who ARE
accustomed to postal savings systems
abroad will trust no one but the y.
| S. government
To reach this field OF potential de-
positors Mr.. Hayes plans the 10llow-
ling basic changes in the present postal
SYSTEM
| Increase the interest from two to
three per cent; payment OF interest on
deposits held less than one year; re-
moval OF the restriction against 'depos-
itors under 10 years OF age; prOviS-
ions for JOINT and trust funds; estab-
! lishment of postal savings banks in
$4,000 postoffices instead of the pres
ent $500; compensation for fourth
class postnlasters on the basis of the
deposits they handle; re-deposft of the
funds IN local banks with more liberal
| Qualification rules for such deposito-
ries; an enlarged board OF directors,
| including Il representative of the feder-
al reserve bank ard one or more civil
ians-
| Lot of Business Sick.
There Is a lot OF business in the
country that is really sick, still stag
/ and the debauCh of extravaganza" Mr..
| HAYES said, ~'but there is "a good deal
more that Is merely maFingering. What
we neeu 1llO16 lIldll duly tIIllfS Cloe 10 liIC
common sense OF. courage and Co1tl-
dence. There is, OF course, the great
! est era of expansion and prosperity
ahead that the world has ever seen.
| Everyone knows this and the one queS-
| ton discussed is when it will start.
! We'll, II is TIME to go curt and meet ut.
/ This we propose to help TO do.
/ The postmaster general declared
that the hundreds OF thousands OF pos
tai savings depositorss are practically
being defrauded because their certlil--
Gates specifically state the 2 per cent
interest is paid on deposits, and do not
state that nothing is pald on deposits
held less than one year. Because cot
this system, he said, the average in
terest paid on all money held was only
" per cent.