The New York herald., 1921-07-04
j. S. POSTAL BANKS
PROFITEER- HAYS
Postmaster General Calls
Treatment of Depositors
Fraud, Netting Millions.
HE PROPOSES REFORMS
Would Increase Interest Rates
and Remove Restrictions
to Increase Savings.
HE PROPOSES REFORMS

SULLIVAN, Ind, July 5.-A billion dol
lars which should be in circulation to
assist the coming industrial revival is
being boarded in American stockings.
Will H. Hays, Postmaster-General, de-
clared to-day In announcing plans for
revision Of the postal savings system
to make it more attractive, to potential
depositors.
Through his reorganization plans
Mr.. HAYS hopes to draw the boarded
wealth of the country cut Of It's hiding
places and into useful channels. The
present treatment Of depositors in the
Postal Savings Bank. he said tonight
after conferences with middle West
ern bankers. amounts almost to
fraud" while the Government has
profiteered at the expense Of the de-
positors to the sum, In the last year
alone. OF $1,720,ooo.
His general plan Of reorganization.
which will be submitted to Congress has
been approved by bankers of the East
and middle West at conferences held in
Washington. New York. Terre Haute
and at his home here. Mr.. Hays as
sured the bankers that he had no in
tention Of entering the postal savings
bank in competition with private saw
inss banks. but rather hopes to make
II valuable feeder of esta ablished 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 paid
by the majority Of savings banks.
Private banks arc not and cannot
hope to reach the vast boarded wealth
which offers a particular field for postal
savings expansion, Mr.. Hays said. He
pointed out that 20 per Gent of the
present 5os.ooo depositors are of foreign
extraction. and that they. as we'll as
others Of their countrymen who are
accustomed to postal savings systems
abroad. will trust no one but tho United
States Government
To reach this field Of potential de-
basic changes In the present postal
system:
/. Increase the interest from to 3
per cent.
g. Payment OF interest on deposits
held less than one year.
8. 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 $4,000 post Offices instead Of
the present $500.
s. Compensation for fourth class post
master on the basis OF the deposits they
handle
Z. Redeposlt Of the funds In local
banks. with more liberal qualification
rules for such repositories.
s. An enlarged board Of directors. in
cluding a representative of the Federal
Reserve Bank and possibly one or more
civilians.
There is lot of business In this
country that is really sick. still stagger-
ing under the shell shock of war and
the debauch of extravaganza" Mr.. Hays
said, but there Is a good deal more
that is merely malingering. What we
need more than anything else is the
common sense OF courage and confidence.
There is, OF course. the greatest era OF
expansion and prosperity ahead that the
world has ever seen. Every one knows
this and the only question discussed is
whent II will start. Well, II is time to
20 cut and meet IL. This we propose 10
help to do
The Postr1aster-Ge General declared that
the hundreds of thousands OF postal say