The copper era and Morenci leader., 1921-07-15

in the postal savings bank, he said ] tonight after conferences, amounts ! almost to fraud while the govern of the depositors to the sum, in the last year alone, of s1,72O 900. he ad- ded
 His plan of reorganization, which will be submitted to congress has been approved by bankers in the east and middle west. MT. Hays as- sured the bankers that he had no in- tention of entering into competition with private savings banks, but hoped only to make the postal bank feeder of established institutions He pointed out that doubling the present inter est rate would still leave it below the average paid by the savings banks.
 Cannot Reach Hoarded Wealth
 Private banks cannot hope to reach the vast hoarded wealth which offers a particular field for postal savings expansion, MT. Hays explained. Sev- enty 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. MT Hays plan is as follows:
 l. Increase the interest rate from to per cent.
 9 Payment of interest on deposits held less than one year.
 Removal of the restriction against depositors under 10 years of age.
 4. Provision for joint and trust funds.
 5. Establishment of postal savings banks in 50,000 postoffice instead of $500.
 6. Compensation for fourth class postmasters on the basis of the de- posits they handle.
 '. Redeposit of the funds in local banks with more liberal qualification rules for such depositors.
 s. An enlarged board of directors, including representative of the Fed eral Reserve bank, and possibly one or more civilians.
 Much Sick Business
 There is lot of business in the country that is really sick, still stag gering under the shell-shock of war and the debauch of extravaganza" MT. Hays said, but there is a good deal more that is merely malingering. There is the greatest era of expan- sion and prosperity ahead that the world has ever seen. Everyone knows this and the only question discussed is when it will start. Well, it is time to go out and meet it. This we pro- pose to help to do.
 ''The postal savings system must be reformed. With $161 100000 on deposit last year from 0S,O0O deposit ors and with the law providing that ? per cent interest be paid. the gov. ernment, because of the system, paid less than F per cent interest to those depOsitors and by redepositing at 21a per cent interest made a net profit over all interest payments and eXpen- ses of $1.72O.0O0.
 "Profiteering by Government. This was sheer profiteering. The certificates issued unequiyocaliy pledge per cent interest and fail to say anything whatever about no in terest being paid if the deposits are not left for year. The postal saw | ings has not scratched the surface, l notwithstanding the magnificent con- l ception of public duty that inspired its founding.
 We do not want depositors from savings banks, but there is a tremend: ous hoarded wealth in the country $1 ,0O0, 900 900 which the postal say | ings banks alone can bring out.
 This money is needed in circula tion now. It will make general bank depositors and ultimate government, bond owners and at the same time it will give small capital a chance fol an honest return the same as large capital It will furnish the tonic tC conclude the business convalescenct in the country and will help to make economy and thrift, much needed national trait"