Jasper County Democrat, Volume 14, Number 48, Rensselaer, Jasper County, 20 September 1911 — POSTAL SAVINGS BANK IS OPENED [ARTICLE]

POSTAL SAVINGS BANK IS OPENED

Tuesday Morning and Mie First Hour's Deposits Duer SIOO LEW NUSTMfIEPOSITDR RO.I With W. A. Davenport No. 2, B. K. Zimmerman No. 3. Many Features of New Institution That Should Appeal to Depositors. Rensselaer’s new postal savings bank opened at 8 o’clock yesterday morning without any undue ceremony or rush of depositors, but we believe it will be a popular branch of the postal service here and that much money now hidden away will be brought out and placed in circulation. Huston, substitute rural mail carrier* was the first depositor at the window and W. A. Davenport, deputy postmaster, was the second, B. K. Zimmerman, the tailor, third. The first hour’s deposits were over SIOO which is much better than they done at Tipton, which opened Friday and the entire day’s deposits were but sl.lO. Tipton is a city twice as large as Rensselaer. One deposit here was SIOO, the limit allowed at one time. (The figures here given are unofficial, as no informatin whatever regarding depsits is given out by the postmasters) One feature of the postal savings banks that, in our opinion, will appeal to many people is that of exchanging deposits for postal savings bank bonds. While a single deposit account is limited to SSOO, a depositor can, at any time, turn his deposit into these bonds and begin over again in deposits. There is no limit to the amount of bonds he may hold. Any deposit of s2o\ and up to SSOO may be exchanged into such bondy,' and one man may hold a million or more • dollars of them. Interest of 2 per cent is paid on the regular deposits, but th* bonds pay 2% per cent semiannually and are exempt from taxation of any kind or character.

For example, our banks now pay 3 per cent on time deposits, and if the depositor doesn’t perjure himself he must pay practically all of this interest, and perhaps more, out in taxes. Now one can put his money in postal savings bank bonds and get 2% per cent interest clear, they ber ing absolutely free from taxes of any kind. This feature will probably cut down the property assessments somewhat and may make it necessary after a' time to make higher tax levies. It will not hurt the banks, but really bene? fit them, because they will get the money—those that qualify for receiving postal deposits—at 2% per cent where they now pay their depositors 3 per cent.