Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-07-04

The Money From Hiding
Places !, : J, Bankers ! x Approve
Plans.
IA, 5aa tg5 iii s-{ III
Sullivan. Ind. !, july "a billion
dollarsswhich should be "a circulation
to assist the coming industrial revival
is being boarded iii American stock
ings, Will III. Hays. postmaster gener-
al, declared Sunday 8 In announcing
ings system to make It more attractive
to potential depositors.
Through his Reorganization plans,
Mr.. Hays hopes to draw the bearded
wealth OF the country out Of its hid
ing places and into useful channels.
The present treatment OF depositors in
thes postal savings bank, he said last
night After conferences with middle
western; bankers, amounts almost to
fr1ud while the government has prof
itccred at :ho expense Of the deposi
tors 70 the sum. in the Last year alone.
Of 3l.72O. 0Uu. n; fi.ssSSG97s n :i:: ~
Plan Approved.
f11s general plan Of reorganization
'Rhich will be submitted, has been ap-
proved by bankers east and middle
west at conferences held in Washing
ton, New York. Terre Haute and at his
6aaKsrs, t6at ae 5 had ' no ] intention Of Of
competiuon With private savings
banks; but rather hoped to make it
a valuable feeder OF esta blished bank
ing institutions. While asking con-
srtss to make the interest rate double
the average paid now, he pointed out
it would still be below the average
Private banks are not and cannot
hope to reach big the vast boarded
wealth, which offers particular field
for postal savings expansion, Mr..
Hays said. He. pointed out that 70
per cent Of the present sos, 900 depos-'
itors are Of foreign extraction, and
that they ais well as others Of, their
countrymen who are accustomed to
postal savings systems abroad will
trust no one but the United states
government. al, +, Il :i4S! sF.
i, fs;t Basic Change,
To reach this field Of potential de-
positors, Nj. Hays plans the following
basic changes in the1bresent system:
IlIncrease the interest from two
to- three per cent, e. 4! q 4. 4. a,
2Payment at interest on deposits
ne1n.{eAA IMAM Z 's.h, II
3-Remoyal "A of the restriction
arainIl Sdepositors under ten years Of
age, . F,. n 4
4ProytsfD1 Tor 1oir1t and trust
funds. 81 ~ f'f{ ~ z: y b.
52Establishrnent OF postal savings
banks IN s5o, 900 postoffices instead Of
the present q, 500, 5ss 5s3 35 {
@6--Conpensatien for fourth class
postmasters on the basis of the depos-
-
&s7-Redeposit of the funds in local
banks with more liberal Qualification
rules for such depositories. 4
+ S--An enlarged board OF directors
including q REPRESENTATIVE Of; the fed
! eral reserve bank and possibly: one or
more civilians, I5-.s. Y q .s5 3 ..5.
.There IS q lot OF business, in this
gerinr y5i,nd er fine Ishellshock of war
and Sthe ,debauch OF sextrayaeance.',
Mr..sHays' said. s.but there is a good
deaf more. that is merely 5nfalineering.
What we need more than anvthinr
eisesiE the commnnrsensa Of courage
and sconfid ence. h There is. Of collrSe,
the. ereatest era of . expansion and
prosperitV ahead that the world ha,
ever seen. Everyore knows this and
itwiil. start. Well Il is time Ia 20 oIit
ana meet it, This we3propose to help
20 do.,$ Il. s,;iis 4, s. Il It
The .nostmaster General decla red
that 5the shmn5 rad = .nfI sthny.anda II
postal savings depositors are nractical-
iv%beinrl defrauded becanse their GER
t;ficates specificaHy state that 2 per
dosnr,t' atate thaf nothin . Il naid an
deposits held less than one wear. Be.
cs,1ss NJ thie systs -, ~. sa,d tha ay-
o,-a - tinfaras+ 70; - =, ~, ~, ,,aid