Rensselaer Semi-Weekly Republican, Volume 40, Number 41, Rensselaer, Jasper County, 28 January 1908 — PLANS FOR ESTABLISHING POSTAL BANKS [ARTICLE]

PLANS FOR ESTABLISHING POSTAL BANKS

Hew Bills of Carter and Hitch* cock Differ from Madden* Snapp Measure. —i- ■■ ■ rfi ■ DISPOSITION OF THE FUNDS. "i . ■ " ; Democrat Provides for Board of Investment—All Fix Deposit Limit at SI,OOO. " Upon the indorsement by Postmaster General Meyer and later by President Roosevelt of the postal savings bank system for the United States, three separate and distinct plans have been proposed to Congress as the proper procedure for establishing andputting into operation such banks. In the House of Representatives Representatives Madden- of Chicago, andP Snapp, of Joliet, 111., have introduced similar measures. Representative Hitchcock, of Omaha, a Democrat, has introduced another House bill, and Senator Thomas Carter, of Montana, Is the father of a senate bill. The main differences in these bills lie in the protection afforded depositors and deposits and in the Investment features of the funds of the postal savings banks. All these bills place a limit on the interest-bearlqg deposits which Can be made by any individual within any single calendar year and finally. The Madden-Snapp bill provides that S3OO may be deposited within one year and that no interest shall be paid to any depositor upon a deposit In excess of SI,OOO. The Carter bill makes the limit of annual deposit SSOO and tfee final limit of intetost-bearing deposit SI,OOO, while the Hitchcock bill has h doublebarreled provision which is more complex. It provides a limit of monthly deposit of SIOO and the final limit of any single deposit at SI,OOO. In addition it provides that no interest shall be paid on more than SSOO to any depositor and that if any depositor deposit more than S2OO in any* one year Interest shall not be paid on new deposits In excess of that amount. Both the v Madden-Snapp and Carter bills provide an interest rate of 2 per cent on deposits, while the Hitchcock bill stipulates that the rate on S2OO or less shall be 2% per cent, and over that amount and up to SSOO the rate shall be fixed by a board of investment, composed of the Postmaster General, the Secretary of the Treasury and the Comptroller of the Currency. In establishing postal savings bank adjuncts to post offices there is also a difference between the Madden-Snapp bill and the others. The Madden-Snapp measure gives the Postmaster General discretion In the selection of offices for postal savings bank purposes; the Hitchcock bill is mandatory in that all Phoney order post offices are made branches of the postal savings bank system, while the Carter bill* makes all first, second and third-class post offices branch postal savings hanks and gives the Postmaster General some discretion as to further extension Into the fourth-class post offices. In administration the Madden-Snapp Mil provides a general of postal pavings banks, with such assistants and clerks as may be necessary, while the Secretary of the Treasury Is authorized to increase the auditor’s force in the Post Office Department. The sum of $50,000 is set aside to start the banks In operation. Both the Hitchcock and Carter bills stipulate that the head of the postal banks shall be an officer known to the Fifth Assistant Postmaster General, and ask SIOO,OOO to establish the banks.