UC-NRLF

B 3 fl7i ^bfl

GIFT OF

•lonn PS 2. (August, 1916.)

BOARD OF TRUSTEES

REGULATIONS

GOVERNING THE DEPOSIT

OF POSTAL SAVINGS FUNDS

IN BANKS

AND THE ACCEPTANCE OF BONDS
AS SECURITY THEREFOR

ISSUED BY THE BOARD OF TRUSTEES
UNDER AUTHORITY OF ACTS OF CONGRESS

EDITION OF AUGUST, 1916

// CI

if UN IV

V 1 •

WASHINGTON

GOVERNMENT PRINTING OFHCE

1916

p**?!' .■*yp?:

''^S^<i'^

Form PS 2. (August, 1916.)

BOARD OF TRUSTEES

REGULATIONS

GOVERNING THE DEPOSIT

OF POSTAL SAVINGS FUNDS

IN BANKS

AND THE ACCEPTANCE OF BONDS
AS SECURITY THEREFOR

ISSUED BY THE BOARD OF TRUSTEES
UNDER AUTHORITY OF ACTS OF CONGRESS

EDITION OF AUGUST, 1916

" -A Cfc»t,

WASHINGTON
GOVERNMENT PRINTING OFHCE

1916

Postal Savings System,
Office of the Board of Trustees,

^\asllmg^on, T). C, August 16, 1916.
At a meeting of the Board of Trustees of the Postal Savings System
held August 16, 1916, the foUowing resolution was adopted:

''Resolved, That under authority of the act of Congress approved
June 25, 1910, and the several amendments thereto, the Board of
Trustees hereby approves and promulgates the accompanying revision
of the regulations governing the deposit of postal savings funds in
banks, and the acceptance of bonds as security therefor, to take
effect immediately and to supersede all previous editions and all
regulations and rulings in conflict therewith."

A. S. Burleson, Postmaster General.

W. G. McAdoo, Secretary of the Treasury.

T. W. Gregory, Attorney General.

Board of Trustees, Postal Savings System.
Attest :

A. M. DOCKERY,

Third Assistant Postmaster General,

Secretary of tlie Board of Trustees.

POSTAL SAVINGS SYSTEM.

REGULATIONS GOVERNING THE DEPOSIT OF POSTAL SAVINGS FUNDS IN
BANKS AND THE ACCEPTANCE OF BONDS AS SECURITY THEREFOR.

ISSUED BY THE BOARD OF TRUSTEES UNDER AUTHORIH OF ACTS OF CONGRESS.

Sectiox 1. The administration of the Postal Savings System is by
law divided iijto two parts. Tlic Postmaster General is charged with
the designation of post offices as postal savings depositories, the super-
vision of postal savings business transacted at depository post offices,
and the conduct of the central administrative office at Washington.
The Board of Trustees, consisting of the Postmaster General, the
Secretary of the Treasury, and the Attorney General, is charged with
the management and investment of postal savings funds after they
leave the custody of postmasters. (Act of June 25, 1910, sec. 1, as
amended by the act of Aug. 24, 1912.) The Treasurer of the United
States is treasurer of the Board of Trustees. (Act of May 18, 1916,
sec. 2.)

Sec. 2. The Third Assistant Postmaster General is hereby consti-
tuted the agent of the Board of Trustees for all purposes connected
with the c{ualification of depository banks, the fixing of the amounts
of securities to be deposited and withdrawn by such banks and the
conditions of such deposits and withdrawals, the deposit of postal
savings funds to the credit of said board and the withdrawal and
transfer of such funds, the authorization of the sale of securities of
banks which fail or decline to repay deposits on demand, the purchase
of postal savings bonds for depositors, and the repurchase of such
bonds for the purpose of maintaining their parity.

2. In the event of the absence or inability to serve of the Third
Assistant Postmaster General, the chief clerk to the Third Assistant
Postmaster General is authorized to act as the agent of the Board of
Trustees, for the purposes stated, in conformity to section 178, Revised
Statutes.

3. All correspondence and reports intended for the Board of
Ti'ustees shall be addressed to the Third Assistant'Postmaster General,
Division of Postal Savings, Washington, D. C.

345845

POSTAL SAVINGS SYSTEM.

ELIGIBILITY OF BANKS.

Sec. 3. The. act of May 18^ 1916 (amending sec. 9 of the act of
June 25, 1910), prescribes that the funds received at postal savings
depository offices in each city, town, village, or other locality shall be
deposited, in the order of precedence specified hi paragraph 2 of this
section, in solvent banks located therein, whether organized under
National or State laws, and whether member banks or not of the Fed-
eral Reserve S3^stem established by the act approved December 23,
1913, being subject to National or State supervision and examination,
willing to receive such deposits under the terms of the act and the
regidations made by authority thereof. The word ''bank" as used
in the law includes savings banks and trust companies doing a bank-
mg business.

2. If one or more member banks of the Federal Reserve System
exist in any city, town, village, or locality where postal savings de-
posits are made, such deposits are required to be placed in such mem-
ber banks, provided they qualify to receive them, substantially in
proportion to the capital and surplus of each such bank; but if such
member banks fail to qualify to receive the deposits, then any other
banks located therein and eligible as hereinbefore provided may
quahfy to receive them, and the deposits shall be placed in such
qualifying banks substantially in proportion to their capital and sur-
plus. If no bank eligible to qualify exists in any city, town, village,
or locality, or if none where such deposits are made will receive them
on the terms prescribed, then such funds shall be deposited under
the teiTQS of said act in the bank most convenient to such locality.
If no such bank in any State or Territory is willing to receive such
deposits on the terms prescribed, then the same are required to be
deposited with the Treasurer of the Board of Trustees. The law
requires that 5 per centum of the postal savings funds shall be ^\dth-
dra%\ni by the Board of Trustees and kept with the Treasurer in
lawful money as a reserve.

QUALIFICATION OF BANKS.

Sec. 4. Any eligible bank desiring to qualify for deposits of postal
savings funds shall transmit to the Third Assistant Postmaster Gen-
eral, Division of Postal Savings, Washington, D. C, an application
accompanied by a report showing fully the condition of the bank on
a day not more than one month prior to the date of such application.
Such report shall be sworn to by the president or cashier and attested
as con-ect by two members of the board of directors, who shall also
certify the amount of paid-m capital and unimpaired surplus, ex-
clusive of undivided profits. Blank application forms may be ob-
tained from the Third Assistant Postmaster General, Division of

REGULATIONS GOVEENHSTG DEPOSIT OF POSTAL SAVINGS FUNDS. 5

Postal Savings, Washington, D. C. No deposits will be made in any
bank until it shall have complied with the provisions of this section
and deposited securities which meet the requirements of section 8.

Sec. 5. Upon receipt of the appHcation required by section 4, prop-
erly completed, from a bank authorized to qualify under the law, the
Third Assistant Postmaster General will inform such bank of the
initial amount of bonds or other securities which it will be required to
deposit as security for postal savings funds.

2. A minimum initial deposit of bonds of the total par value of
$5,000 will be required from a bank qualifymg at a first-class post
office; of the total par value of S 1,000 at a second or third class
office; and of the total par value of $500 at a fourth-class office; but
no deposit of bonds of a total par value less than $500 will be accepted.
If warranted by the anticipated deposits, greater initial amounts of
securities than those above specified may be required.

3. Bonds or securities conforming to the requirements of section 8
and in the amount specified in the notification of the Third Assistant
Postmaster General shall be forwarded by the bank directly to the
Treasurer of the United States, Washington, D. C.^

4. Either registered or coupon bonds will be accepted, but all
registered bonds shall be registered in the name' of ''The Treasurer of

the United States, in trust for the Bank, of , as security

for postal savings funds." The Treasurer of the United States will
dispose of maturing coupons and checks covering interest accruing on
registered bonds as directed by the banks.

Sec. 6. The Third Assistant Postmaster General will inform the
Treasurer of the United States of the amounts of securities which
the respective banks are required to deposit. Upon receipt of such
securities, the Treasurer shall determine, as matter of fact, whether
the securities conform to the requirements of these regulations. He
shall then submit a statement of his findings to the Solicitor for the
Post Office Department, who shall determine, as matter of law,
whether such securities are legally acceptable under the act of May
18, 1916, and the regulations herein set forth, and who for that
purpose shall have access to the securities. No securities shall be
accepted until their legal acceptability has been determined by the
Solicitor for the Post Office Department.

2. If such bonds are accepted, the Treasurer shall issue his receipt
therefor in duplicate, forwarding the origmal to the Third Assistant
Postmaster General with advice of his action, and the dupUcate to
the bank depositing the secmities. If the bonds are held not to

1 To facilitate examination as to legal acceptabilitj' of securities, banks are requested to forward, at the
time the secui'ities are tendered, for the use of the Solicitor for the Post Oflice Department, certified
copies of final legal opinions as to the validity of such securities, or, if such opinions are not available,
certified transcripts of the recorded proceedings, including certificates covering the due execution and
sale of such bonds.

6 POSTAL SAVINGS SYSTEM.

conform to tlio requirements of the law or these regulations, they
shall be retained subject to the order and at the risk of the bank for
whoso account thoy were tendered, and the bank so notified. If
the bonds arc insufficient in amount, the bank shall be requested
by the Treasurer to furnish additional bonds.

Sec. 7. On receipt of notice from, the Treasurer of the United
States that the securities required of any bank have been received
and accepted, the Third Assistant Postmaster General will notify
such bank that it has qualified to receive deposits of postal savings
funds. He will state the amount fixed as the maximum balance
which may be held by such bank, and will instruct the proper post-
master to make deposits therein.

SECURITY FOR DEPOSITS.

Sec. 8. The Board of Trustees hereby prescribes and approves
such security in public bonds or other securities, authorized by act
of Congress or supported by the taxing power, as it deems sufiicient
and necessary to insure the safety and prompt payment on demand
of postal savings deposits, and fixes the value at which the securities
so prescribed and approved shall be accepted for the purposes named.
Such securities, in the amount so specified, shall be deposited with
the Treasurer of the Board of Trustees.

2. The Board of Trustees will accept as security for postal savings
deposits, at the respective values herein fixed, negotiable interest-
bearing bonds or securities, issued under express constitutional or
statutory provisions, of the following classes, viz :

(a) Bonds of the United States, of the Philippine Islands, of the
District of Columbia, and of Porto Rico, will be accepted at their
par value.

(h) Bonds of any State of the United States and of the Territory of
Hawaii will be accepted at their market value, but if such market
value is above par, they wUl be accepted at their par value.

(c) Bonds of any city or county in the United States havmg a
population of over 30,000, as shown by the latest reports of the
Bureau of the Census, and bonds of any school district in the United
States m which the whole or the major portion of any such city
is included, which city, county, or school district has been in existence
for a period of ten years, which for a period of ten years previously
has not defaulted in the payment of any part of either principal or
interest of any funded debt authorized to be contracted by it, and
whose net funded indebtedness does not exceed 10 per cent of the valu-
ation of its taxable property, to be ascertained by the last preceding
valuation for the assessment of taxes, will be accepted at 90 per cent
of their market value, but if such market value is above par, they will
be accepted at 90 per cent of their par value.

REGULATIONS GOVEENING DEPOSIT OF POSTAL SAVINGS FUNDS. 7

{d) Bonds of any city, town, borough, or village in the United States,
having a population of over 20,000 and not exceeding 30,000, as shown
by the latest reports of the Bureau of the Census, and bonds of any
school district in the United States in which the whole or the major
portion of any such municipality is included, which city, town, borough,
village, or school district has been in existence for a period of ten years,
which for a period of ten years previously has not defaulted in the
payment of any part of either principal or interest of any funded
debt authorized to be contracted by it, and whose net funded indebt-
edness does not exceed 10 per cent of the valuation of its taxable
property, to be ascertained by the last preceding valuation for the
assessment of taxes, will be accepted at 80 per cent of their market
value, but if such market value is above par, they will be accepted
at 80 per cent of their par value.

{e) Bonds of any other city, town, county, or other legally consti-
tuted municipality or district in the United States, which has been in
existence for a period of ten years, which for a period of ten years
previously has not defaulted in the payment of any part of either
principal or interest of any funded debt authorized to be contracted
by it, and whose net funded indebtedness does not exceed 10 per cent
of the valuation of its taxable property, to be ascertained by the last
preceding valuation for the assessment of taxes, wiJl be accepted at
75 per cent of their market value, but if such market value is above
par, they will be accepted at 75 per cent of their par value.

3. The term " net funded indebtedness," for the pul-poses of para-
graph 2, (c), (d), and (e), is hereby defined to be the difference between
the legal gross indebtedness of a city, town, county, or other legally
constituted mmiicipahty or district (includmg the amount of the
bonds of any civil division whose territorial limits are approximately
coterminous therewith) and the aggregate of the following items, when
included in such legal gross indebtedness:

(a) The total of all sinking funds accumulated for the redemption
of such gross indebtedness, except sinking funds applicable to bonds
hereafter described in this section.

(b) The amount of outstanding bonds or other debt obligations,
made payable from current revenues.

(c) The amount of outstanding bonds issued for the purpose of
providing the inhabitants of a municipahty with pubhc utilities:
Provided, That evidence is submitted showing that the income from
such utilities has proved to be sufficient for maintenance, for pay-
ment of interest on such bonds, and for the accumulation of a
sinking fund for their redemption.

(d) The amount of outstanding improvement bonds, issued under
laws which provide for the levying of special assessments against
abutting property: Provided, That evidence is submitted showing

54215°— 16 2

8 rOSTAL SAVINGS SYSTEM.

tliat assessments are levied in sufficient amounts to insure the pay-
ment of interest on the bonds and the redemption thereof.
- 4. The Board of Trustees reserves the right to reclassify the secu-
rities acceptable for deposits and to change the valuation at which
they will be accepted. Under no circumstances will securities of
other classes than those above named be accepted.

Sec. 9. Bonds of the several classes described in section 8, para-
graph 2, (b), (c), (d), and (e), to be acceptable as security, shall be the
general obligations of the States, Territories, counties, cities, towns,
or other poHtical divisions by or in behalf of which they are issued,
and payable, either directly or ultimately, without limitation to a
special fund, from the proceeds of taxes authorized to be levied upon
aJl the taxable real and personal property within the territorial limits
of such pohtical divisions: Provided, That in any case where the rate
of tax maybe subject to a constitutional or statutory limit, the Solicitor
for the Post Office Department may require satisfactory evidence that,
notwithstanding such limit, the interest and prmcipal of the bonds can
be paid after making due provision for current expenses, interest
and principal of outstanding debts, and other necessary charges.

Sec. 10. Obligations of the general class embracing what are
commonly known as "revenue bonds," "temporary bonds," "tempo-
rary notes," "certificates of mdebtedness," "warrants," and the like
obligations, whether issued in anticipation of the collection of taxes,
assessments, or other revenues, or of the sale of bonds or other obli-
gations, or for similar purposes, will not be accepted as security for
postal savings deposits: Provided, That, in applying this regulation,
consideration will be given to the legal status of the obhgations sub-
mitted rather than to the nomenclature employed in designating
such obligations.

Sec. 11. Bonds which in all other respects are found to be legally
acceptable as security under the postal savings act and these regu-
lations will be construed, as a matter of law, to conform to those
provisions of section 8, paragraph 2, (c), (d), and (e), respectively,
which relate to term of existence and nondefault, under the following
conditions:

(a) Bonds issued by or in behalf of any city, town, comity, or
other legally constituted mmiicipahty or district in the United
States which was, subsequently to the issuance of such bonds, con-
solidated with, or merged into, an existing pohtical division which
meets the requirements of these regulations, will be deemed to be the
bonds of such pohtical division: Provided, That such bonds were
assumed by such pohtical division imder statutes and appropriate
proceedings the effect of which is to make such bonds general obh-
gations of such assuming pohtical division, and payable, either
directly or ultimately, without limitation to a special fund, from the

EEGULATIONS GOVEEI^ING DEPOSIT OF POSTAL SAYINGS FUNDS. 9

proceeds of taxes levied upon all the taxable real and personal
property within its territorial limits.

(h) Bonds issued by or in behalf of any city, town, county, or
other legally constituted municipahty or district in the United States
which was, subseqiiently to the issuance of such bonds, wholly
succeeded by a newly organized poHtical division, whose term of
existence, added to that of such original poUtical division, or of any
other pohtical division so succeeded, is equal to a period of 10 years,
will be deemed to be bonds of such succeeding political division:
Provided, That durmg such period none of such political divisions
shall have defaulted hi the payment of any part of either principal
or interest of any funded debt authorized to be contracted by it:
And provided further, That such bonds were assumed by such new
political division under statutes and appropriate proceedings the
effect of which is to make such bonds general o])hgations of such
assuming pohtical division, and payable, either directl}- or ulti-
mately, without limitation to a special fund, from the proceeds of
taxes levied upon all the taxable real and personal property within
its territorial limits.

(c) Bonds issued by or in behalf of any city, towTi, county, or
other legally constituted municipahty or district in the United
States which, prior to such issuance, became the successor of one
or more, or was formed by the consoUdation or merger of two or
more, preexistmg pohtical divisions, the term of existence of one or
more of which, added to that of such succeeding or consohdated
poHtical division, is equal to a period of 10 years, wiU be deemed to
be bonds of a pohtical division which has been in existence for a
period of 10 years: Provided, Tliat durmg such period none of such
original, succeeding, or consolidated political divisions shall have
defaulted in the payment of any part of either principal or interest,
of any funded debt authorized to be contracted by it.

Sec. 12. The Treasurer of the Board of Trustees shall make exami-
nations semiannually, or oftener if he deems it necessary, of the
securities which have been accepted from qualified banks, and when-
ever, in his judgment, any of such securities have so far depreciated in
value as to make desirable the deposit of additional or new securities,
he shall inform the Third Assistant Postmaster General of the name
of the bank, the kind and amount of the securities, and the amount of
the depreciation. The Third Assistant Postmaster General will
notify the Treasurer and the bank of the amount of additional or new
securities which the bank shall deposit, and upon their receipt by the
Treasurer, the procedure provided in section 6 as to their acceptance
or rejection, and in section 22, as to the return of the origmal securi-
ties, if new securities are required, shall be followed.

10 POSTAL SAVINGS SYSTEM.

APPORTIONMENT OF DEPOSITS.

Sec 13. When more than one bank in any city, town, village, or
locality has qualified to receive postal savings funds, deposits of such
funds shall be apportioned substantially upon the basis of capital and
surplus as required by the act of May 18, 1916, and shall be made to
the credit of the Board of Trustees in such rotation and amounts as
wUl effect such apportionment, until the deposits reach the maximum
balance authorized for any bank. The banks concerned will be fully
informed in the premises.

2. An apportionment of postal savings fimds will apply in the case
of each qualified bank only to funds deposited after the date as of
which the bank qualified..

Sec. 14. After any apportiomnent of funds has been made in a
given locality, no other bank will be allowed to quahfy to receive
postal savings deposits except as of the 1st day of January, April
July, or October, unless the maximum amount of deposits applied
for by the banks already ciualified has been reached and such banlvS
have not qualified for additional funds. When a qualified member
bank of the Federal Reserve System in which the deposits have
reached the maximum authorized balance declines or fails to furnish
additional collateral and a local nonmember bank qualifies to receive
deposits, the member bank must await the next quarterly reappor-
tionment date before qualifying for additional funds. Apphcations
to quahfy under a reapportionment of the funds of any depository
ofiice shall be forwarded in sufficient time to reach the Third Assistant
Postmaster General, Division of Postal Savings, before the 15th day
of December, March, June, or September.

2. When the capital or surplus of a depository bank is increased or
reduced after it has qualified as a depository, the president or casliier
shall promptly certify to the Third Assistant Postmaster General,
Division of Postal Savings, the amount of such bank's paid-in cap-
ital and unimpaired surplus, exclusive of undivided profits, after such
increase or reduction, in order that proper reapportionment of the
deposits may be made among the banks affected as of the dates fii*st
above named.

INTEREST.

Sec. 15. Until further notice, banks which have qualified to receive
deposits of postal savings funds will be required to credit the Board
of Trustees with interest at the rate of two and one-half per cent per.
annum, as of January 1 and July 1 in each year, upon the average
daily balances of postal savings funds deposited with such banks,
as shown by the audited accounts of postmasters and other
agents of the Postal Savings System. Such mterest shall be com-
puted and entered as required bv instructions on the back of Form
PS 510.

REGULATIONS GOVERNING DEPOSIT OF POSTAL SAVINGS FUNDS. 11

2. The Board of Trustees will, from time to time, make such changes
in the rate of interest to be paid by qualified banks as it may deem
proper, subject to the minimum rate prescribed by the act of May 18,
1916, the rate adopted being uniform throughout the United States
and Territories thereof.

DEPOSITS OP FUNDS IN BANKS.

Sec. 16. Postmasters who deposit in qualified banks will be in-
structed to make all such deposits to the credit of the Board of
Trustees, Postal Savings System, and will be required to make daily
deposits of all excess postal savings receipts amounting to $10 or
more, except on the 25th day of each month, when all cash on hand
amounting to $1 or more shall be deposited.

2. On receipt of a deposit of such funds the bank shall issue a certifi-
cate of deposit, in dupUcate, on Form PS 400, in the name of the post-
master or other officer or agent making the deposit. The duplicate
shall be immediately delivered or forwarded to the postmaster or
other officer or agent making the deposit and the original certificates
shall be forwarded by the bank at the close of each calendar week to
the Third Assistant Postmaster General, Division of Postal Savings.
All original certificates on hand at the end of a month, even though
covermg only a part of a week, shall be forwarded. Qualified banks
will be suppHed with blank certificates, Form PS 400.

EXCESS DEPOSITS.

Sec. 17. If any postmaster shaU deposit in a qualified bank an
amount in excess of the maximum balance authorized, such bank
shall immediately notify the Third Assistant Postmaster General,
Division of Postal Savings, and, imtil otherwise directed, shall transfer
such excess at the close of business each day to the Treasurer of the
United States at Washington or to the Assistant Treasurer of the
United States in one of the following cities : New York, Philadelphia,
Boston, Baltimore, Cincinnati, Chicago, St. Louis, New Orleans, or
San Francisco. Such transfer shall be made to the credit of the
*' Board of Trustees, Postal Savings System, on accoimt of returnable
deposits."

Sec. 18. Should additional funds beyond the amount for which a
bank has qualified become available for deposit, the bank, in order to
receive further deposits, wiU be required to furnish additional securi-
ties in the manner provided by section 5, paragraphs 3 and 4, and
the procedure set forth in sections 6 and 7 shall be followed. When
the volume of deposits in a quaUfied bank approaches the maximum
balance which it is authorized to receive, and it appears that funds
wiU be available in the near future for deposit in excess of such bal-
ance, the bank may, if it so desires, forward additional bonds directly

12 ' POSTAL SAVINGS SYSTEM.

to the Treasurer of the United States mthout awaiting instructions
from the Tliird Assistant Postmaster General, who should, however,
be promptly notified of such action.

WITHDRAWALS Bf POSTMASTERS.

Sec. 19. All postal savings funds are required to be deposited to
the credit of the Board of Trustees. In order to provide a post-
master who deposits in bank with funds for meeting withdrawals by
depositors, one bank, especially designated for the purpose, will be au-
thorized to honor his official checks, drawn against the Board of Trus-
tees' accoimt, and not exceeding a specified amount in any one cal-
endar month. The amount of the credit thus fixed may be added to
the proportion of deposits assigned to the designated bank, but shall
be secured by bonds, subject to the payment of interest, and included
in the maximum balance which such bank is authorized to receive.
Such credit may be increased from time to time by the Third
Assistant Postmaster General.

WITHDRAWALS BY BOARD OF TRUSTEES.

Sec. 20. Whenever postal savings funds are to be withdrawn from
a quahfied bank by the Board of Trustees for investment in bonds or
other securities of the United States, or for other purposes, the Third
Assistant Postmaster General will draw a draft on the bank, or will
direct the bank to deposit the required amount to the credit of the
"Board of Trustees, Postal Savings System," with the Treasurer or
an assistant treasurer of the United States, or other authorized agent.

2. On receipt of such deposit the Treasurer, assistant treasurer, or
other agent shall issue a certificate of deposit in dupHcate in the name
of the depositing bank, and forward the original certificate to the
Third Assistant Postmaster General, Division of Postal Savings, and
the dupHcate to the bank.

3. When funds are to be transferred from one bank to another by
direction of the Third Assistant Postmaster General, the procedure
prescribed in section 16, paragraph 2, shall be followed.

WITHDRAWALS OF SECURITIES BY BANKS.

Sec. 21. Whenever a bank desires to relinquish the whole or a
part of its postal savings deposits or to withdraw such of its securities
as do not cover deposits, it shall notify the Third Assistant Postmaster
General, Division of Postal Savings, and shall forward to him the
duplicate receipt or receipts issued by the Treasurer of the United
States at the time the securities were deposited, together with a duly
attested and certified copy of a resolution of its board of directors
authorizing such withdrawal and specifying the disposition to be
made of the securities.

REGULATIONS GOVEENING DEPOSIT OF POSTAL SAVINGS FUNDS. 13

. 2. The Third Assistant Postmaster General will direct the bank as
to the disposition to be made of the relinquished deposits, and after
such disposition will transmit both the original and duplicate receipts
to the Treasurer of the United States, who shall then dispose of the
bonds as directed by the bank.

3. If the entire amount of securities deposited is not withdrawn,
the Treasurer shall return the receipts to the Third Assistant Post-
master General, indorsing thereon the amoimt of securities with-
drawn, and the Third Assistant Postmaster General will transmit
the duplicate receipt to the bank. If the entire amount of securities
deposited is withdrawn, the receipts shall be canceled and retamed
by the Treasurer.

4. Registered bonds withdrawn for any reason shall be assigned by
the Treasurer directly to the bank for whose account they were pre-
viously held, except in the cases covered by sections 23 and 25, and
except where United States bonds are called for redemption, in which
case they shall be assigned directly to the Secretary of the Treasury.

5. If the duplicate receipt issued to a bank covering securities
deposited shall be lost, stolen, or destroyed, and can not be produced
when a withdrawal of bonds is to be made, an affidavit setting forth
the facts shall be executed by an officer of the bank and forwarded
to the Third Assistant Postmaster General, who may authorize the
Treasurer of the United States to accept such affidavit in lieu of the
missing receipt.

Sec. 22. When a bank desires to substitute securities in lieu of
those abeady deposited, it shall notify the Third Assistant Post-
master General, Division of Postal Savings, inclosing the Treasurer's
duplicate receipt for the bonds to be withdrawn, and a duly certified
and attested copy of a resolution of its board of directors authoriz-
ing such substitution. The Third Assistant Postmaster General will
then forward to the Treasurer both the original and duplicate receipts
for the bonds to be withdrawn and direct the bank to forward to the
Treasurer the securities to be substituted. If they are accepted, the
Treasurer shall issue new receipts to the Third Assistant Postmaster
General and to the bank and dispose of the securities withdrawn as
requested by the bank.

Sec. 23. When banks desire to exchange with one another
securities deposited by them, they shall forward to the Third Assist-
ant Postmaster General hsts of such securities, accompanied by duly
attested and certified copies of resolutions of their boards of directors
authorizing such exchanges and the Treasurer's duphcate receipts
covering such securities. If the exchanges are approved, the Third
Assistant Postmaster General will so inform the Treasurer, who shall
simultaneously withdraw from deposit and assign the securities and
redeposit them for account of the respective banks, issumg new
receipts in duphcate therefor.

14 POSTAL SAVINGS SYSTEM.

FAILUKE OF BANKS TO REPAY DEPOSITS OR OTHERWISE TO OBSERVE

REGULATIONS.

Sec. 24. Any qualified bank which shall fail to comply with these
regulations shall be liable to be disquahfied. In the event of such
disqualification the Third Assistant Postmaster General wiU direct
the bank as to the disposition to be made of its postal savings de-
posits, and the bank shall thereupon comply with the provisions of
section 21 in so far as they shall be apphcable.

Sec. 25. If a quahfied bank shall fail or decUne to repay postal
savings deposits and accrued interest thereon, when so required by
the Third Assistant Postmaster General, he will authorize and direct
the Treasurer of the United States to invite bids for the purchase of
securities deposited by such bank and to seU such portion thereof as
may be necessary to reimburse the Board of Trustees in the amount
which the bank has failed or dechned to pay, and to assign and
dehver such securities to the purchaser upon payment therefor.
The proceeds from such sale shall be deposited by the Treasurer to
the credit of the Board of Trustees as directed by the Third Assistant
Postmaster General. Any portion of such securities or the proceeds
thereof remaining after the Board of Trustees has been fully reim-
bursed shaU be returned to the bank or to its receiver or other legal
representative.

2. If it shah appear to the Treasurer that the immediate sale of
such securities as above provided would not realize a sufiicient amount
to reimburse fuUy the Board of Trustees, he shall so inform the
Tliird Assistant Postmaster General, who may direct that such sale
be deferred.

REPORTS.

Sec. 26. At the close of each month, or oftener if required, each
quahfied bank shall render to the Third Assistant Postmaster Gen-
eral, Division of Postal Savings, a statement on Form PS 510 of the
postal savings fund account as showm by its books, giving all infor-
mation called for by said form, a supply of which wiU be furnished
to each bank. This report is necessary for the audit of the accounts
of postmasters and banks, and shall be rendered in every case when
funds arc on deposit, even though no transactions occurred during
the month. Each bank shaU forward aU paid checks or drafts with
the monthly statement of account in which credit is claimed for their
payment.

2. Each bank shall furnish at any time to a duly authorized repre-
sentative of the Board of Trustees any information requested as fo
its postal savings transactions.

KEGULATIONS GOVERNING DEPOSIT OF POSTAL SAVINGS FUNDS. 15

MISCELLANEOUS.

Sec. 27. No bank in which postal Savings funds are deposited
shall charge or receive any exchange or other fees or compensation
on account of the cashing or collection of any checks or drafts or the
performance of any other service in connection with the Postal Sav-
ings System. (See sec. 8, act of June 25, 1910.)

Sec. 28. A qualified bank may advertise that it is a "United
States depository for postal savings funds," but no other form of
advertisement is authorized by the Board of Trustees.

APPENDIX.

AN ACT TO ESTABLISH POSTAL SAVINGS DEPOSITORIES
FOR DEPOSITING SAVINGS AT INTEREST WITH THE
SECURITY OF THE GOVERNMENT FOR REPAYilENT
THEREOF, AND FOR OTHER PURPOSES.i

Be it enacted hj the Senate and House of Rejyresentatives
of the United States of America in Congress assembled^
That there be, and is hereby, created a board of trustees Board of trus.
for the control, superrision, and administration of the
postal savings depository offices designated and estab-
Hshed under the provisions of this act, and of the funds
received as deposits at such postal savings depository
offices by virtue thereof. Said board shall consist of the Personnel.
Postmaster Greneral, the Secretary of the Treasury, and
the Attorney General, severally, acting ex officio, and
shall have power to make all necessary and proper regu- Powers.
lations for the receipt, transmittal, custody, deposit, in-
vestment, and repayment of the funds deposited at postal
savings depository offices.

Tlie board of trustees shall submit a report to Congress Report to con.
at the beginning of each regular session showing by States
and Territories (for the preceding fiscal year) the number
and names of post offices receiving deposits, the aggre-
gate amount of deposits made therein, the aggregate
amount of withdrawals therefrom, the number of deposi-
tors in each, the total amount standing to the credit of
all depositors at the conclusion of the year, the amount of
such deposits at interest, the amount of interest received
thereon, the amount of interest paid thereon, the amount
of deposits surrendered by depositors for bonds issued by
authority of this act, and the number and amount of
unclaimed deposits. Also the amount invested in Govern-
ment securities by the trustees, the amount of extra ex-
pense of the Post Office Department and the postal service
incident to the operation of the postal savings depository

1 Amended by acts of Aug. 24, 1912 (see p. 25), Sept. 23, 191-1 (see p. 25), and May 18,
1916 (see p. 26).

gress.

18 POSTAL SAVINGS SYSTEM.

wds* fn' itlilra system, [the amount of work done for the savings deposi-
IS'^of'septomi.e? ^^^y j??/s^6m by the Post OJice Department and postal
23,1914. seo page gg;.y^gg ^^ fj^g transportation of free mail,] and all other

facts which it may deem pertinent and proper to

present.
Bracketed [Sec. 2. That the Postmastcr General is hereby directed

section in italics L ^ ^ ^

ac^^of^se tembe? ^^ prepare and issue special stamps of the necessary de-
^, 1914. See page nominations for use, in lieu of penalty or franked envel-
opes, in the transmittal of free mail resulting from the
administration of this act.]

Postal sa inrs Sec. 3. That Said board of trustees is hereby author-
depository omees.. J.J-i. 1 1. £C

ized and empowered to designate such post omces as it

may select to be postal savings depository offices, and
each and every post office so designated by order of said
board is hereby declared to be a postal savings depository
office within the meaning of this act and to be author-
ized and required to receive deposits of funds from the
pubHc and to account for and dispose of the same, accord-
ing to the provisions of this act and the regulations made
Hours cf busi- in pursuaucc thereof. Each postal savings depository
office shall be kept open for the transaction of busmess
durmg such hours as the Postmaster General, with the
approval of the board of trustees, shall direct.

cou^tT^^ of ^'^- Sec. 4. That accounts may be opened and deposits
made in any postal savings depository established under

^^Age of deposi- ^]^jg ^ct by any person of the age of ten years or over, in

Married women. ]^g qj. jjgj. q^tj^ name, and by a married woman in her

own name and free from any control or interference by

acanmr"""' °°^ ^^^ husbaud; but no person shall at the same time have
more than one postal savings account in his or her own
right.

Sec. 5. That the postmaster at a postal savings de-
pository office shall, upon the making of an application
to open an account under tliis act and the submission of
Passbooks, an initial deposit, deliver to the depositor a pass book
free of cost, upon which shall be written the name and
signature or mark of the depositor and such other memo-
randa as may be necessary for purposes of identification,
in which pass book entries of all deposits and withdrawals
shall be made in both figures and writing: Provided, That
the Postmaster General may, with the approval of the
Device in lieu-^Qard of trustecs, adopt some other device or devices in

01 pass books. ' -i

lieu of a pass book as a means of maldng and preserving
evidence of deposits and withdrawals.

REGULATIONS GOVEKNING DEPOSIT OF POSTAL SAVINGS FUNDS. 19

Sec. 6. That at least one dollar, or a larger amount in ^t^^e^j. ^^^
multiples thereof, must be deposited before an account is^^jlJ^fiiinicsotone
opened with the person depositing the same, and one dol- *^°'''^'"-
lar, or multiples thereof, may be deposited after such ac-
count has been opened, [hut no one sh<iU he permitted to Bracketed

,. -, " '^,^. -^ , words in italics

deposit more than one hundred dollars in any one calen- amended by the

2iCt/ of M'lV IS

dar month]: Provided, That in order that smaller amounts wie. seepage26!
may be accumulated for deposit any person may purchase
for ten cents from any depository office a postal savings I'ostai savings
card to which may be attached specially prepared adhe- rostai savings

*' 1. y r r stamps.

sive stamps, to be known as "postal savings stamps," and
when the stamps so attached amount to one dollar, or a
larger sum in multiples thereof, including the ten-cent
postal savings card, the same may be presented as a de-
posit for opening an account, and additions may be made
to any account by means of such card and stamps in
amounts of one dollar, or multiples thereof, and when a
card and stamps thereto attached are accepted as a de-
posit the postmaster shall immediately cancel the same.
It is hereby made the duty of the Postmaster General to
prepare such postal savings cards and postal savings
stamps of denominations of ten cents, and to keep them saio of postal

■,. .1 . , ., rr-i, savings cards and

on sale at every postal savmgs depository oihce, and to stamps.
prescribe all necessary rules and regulations for the issue,
sale, and cancellation thereof.

Sec. 7. That interest at the rate of two per centum poSsT^* °° ^^
per annum shall be allowed and entered to the credit of year! ^^^ °°^^ *
each depositor once in each year, the same to be com- subject to regu-
puted on such basis and under such rules and regula-
tions as the board of trustees may prescribe; but interest
shall not be computed or allowed on fractions of a dollar:
[Provided, That the halance to the credit of any one person words in italics
shall never he allowed to exceed five hundred dollars, exclu^^^^ot May is,

r 7.7-. .1 1916. See page 26.

sive of accumulated interest.]

Sec. 8. That any depositor may withdraw the whole de™.'^'^^^ °'
or any part of the funds deposited to his or her credit, deposttS. ^°'''''
with the accrued interest, upon demand and under such
regulations as the board of trustees may prescribe.
Withdrawals shall be paid from the deposits in the State
or Territory, so far as the postal funds on deposit in such
State or Territory may be sufficient for the purpose, and,
so far as practicable, from the deposits in the community
in which the deposit was made. No bank in which postal ceive^ch^ge ^
savings funds shall be deposited shall receive any q-x__°^'^^^ ^^^^-

20 POSTAL SAVINGS SYSTEM.

change or other fees or compensation on account of the
cashing or collection of any checks or the performance
of any other service in connection with the postal sav-
ings depository system.
ti(m m^Halics^J^- [SjEc. 9. That postal savings funds received under the
tkin 2^of\hoacTo"t pfovisions of tMs uct shall he deposited in solvent lanTcs,
SM^page^27. ^^^^' ^'^^t^^-^f organized under National or State laws, heing suh-
ject to National or State supervision and examination, and
the sums deposited shall hear interest at the rate of not
less than two and one-fourth per centum per annum,
which rates shall he uniform throughout the United States
and Territories thereof; hut five per centum of such funds
shall he withdrawn hy the hoard of trustees and Icept with
the Treasurer of the United States, who shall he treasurer
of the hoard of trustees, in lawful money as a reserve.
The hoard of trustees shall taJce from such hanlcs such
security in puhlic honds or other securities, supported hy
the taxing power, as the hoard may prescribe, approve,
and deem sufficient and necessary to insure the safety
and prompt payment of such deposits on demand. The
funds received at the postal savings depository offices in
each city, town, village, and other locality shall he de-
posited in hanlcs located therein {substantially in pro-
portion to the capital and surplus of each such hanlc)
willing to receive such deposits under the terms of this
act and the regulations made hy authority thereof, hut
the amount deposited in any one hanlc shall at no time
exceed the amount of the paid-in capital and one-half the
surplus of such hanlc. If no such hanlc exist in any city,
town, village, or locality, or if none where such deposits are
made will receive sucJh deposits on the terms prescribed,
then such funds shall he deposited under the terms of this
act in the hank most convenient to s-uch locality. If no
such hanlc in any State or Territory is willing to receive
such deposits on the terms prescribed, then the same shall
he deposited with the treasurer of the hoard of trustees, and
shall he counted in making up the reserve of five per centum.
Such funds may he withdrawn from the treasurer of said
hoecrd of trustees and all other postal savings funds , or any
part of such funds, may he at any time withdrawn from
hanks and saving depository offices for the repayment of
postal savings depositors when required for that purpose.
Not exceeding thirty per centum of the amount of such
funds may at any time he witlidrawn by the trustees for
investment in honds or other securities of the United States,

REGULATIONS GOVEEISrilS^G DEPOSIT OF POSTAL SAVINGS FUNDS. 21

it heing the intent of this act that the residue of such funds,
amounting to sixty five per centum thereof, shall remain
on deposit in the hanks in each State and Territory unU-
ing to receive the same under the terms of this act, and
shall he a working halance and also a fund whicJi may he
withdrawn for investment in hands or other securities of
the United States, hut only hy direction of the President,
and only when, in his judgment, the general welfare and
the interests of the United States so require. Interest
and profit accruing from the deposits or investment of
postal savings funds shall he applied to the payment of
interest due to postal savings depositors as hereinhefore
provided, and the excess thereof, if any, shall he covered
into the Treasury of the United States as a part of the
postal revenue: Provided, That postal savings funds in
the treasury of said hoard shall he suhject to disposition
as provided in this act, and not otherwise: And provided
further, That the hoard of trustees may at any time dis-
pose of honds held as postal savings investments and use
the proceeds to meet witMrawals of deposits hy depositors.
For the purposes of this Act, the word " Territory," as used
herein, shall he held to include the District of Columbia,
the District of Alaska, and Porto Rico, and the word
"hank" shall he held to include sav^ings hanks and trust
companies doing a hanking husiness.]

Sec. 10. That any depositor iii a postal savings de- i'^sm savings
pository may surrender his deposit, or any part thereof,
in sums of twenty dollars, forty dollars, sLxty dollars, ^gE^^^^'^s® °^
eighty doUars, one hundred dollars, and multiples of
one hundred dollars and five hundred dollars, and receive
m heu of such surrendered deposits, under such regula-
tions as may be estabhshed by the board of trustees, the
amomit of the surrendered deposits in United States
coupon or registered bonds of the denommations of Denomina-
twenty dollars, forty dollars, sixty dollars, eighty
dollars, one hundred dollars, and five himdred dollars, interest.
which bonds shall bear mterest at the rate of two and
one-half per centum per annum, payable semiannually,
and be redeemable at the pleasure of the United States Redeemable af-

!• 1 1 /• 1 ter one year.

after one year from the date of their issue and payable. Payable after

•^ 1 ^ twenty years, in

twenty years from such date, and both principal and go^d coin.

interest shall be payable in United States gold coin of the

present standard of value: Provided, That the boiidSj^^^'^e^Jg^^'^^ds

herein authorized shall be issued only (first) when there

are outstanding bonds of the United States subject to

22 POSTAL SAVINGS SYSTEM.

call, m which case the proceeds of the bonds shall be
applied to the redemption at par of outstanding bonds
of the United States subject to call, and (second) at
times when under authority of law other than tiiat con-
tained in this act the Government desires to issue bonds
for the purpose of replenishing the Treasury, in which case
the issue of bonds under authority of this act shall be
in lieu of the issue of a like amount of bonds issuable under
authority of law other than that contained in this act:
SecTet&Txo! Provided further, That the bonds authorized by this
scrRie repiiiations act shall be issued by the Secretary of the Treasury

of l)ond issue. , , i,- i ■^ a -i

Board of. tnis- Under such regulations as he may prescribe: And pro-

in vostai savings vided further, That the authority contained in section

nine of this act for the investment of postal savmgs funds

in United States bonds shall include the authority to

invest in the bonds herein authorized whenever such

Exempt from bonds may be lawfully issued: And provided further. That
the bonds herein authorized shall be exempt from aU
taxes or duties of the United States as well as from taxa-
tion in any form by or under State, municipal, or local

Kot receivable authority: And provided further, That no bonds author-
as security for is- . Ill' inn •11 1 1 rr\

sue Of Circulating ized by this act shall be receivable by the ireasurer

notes by national ff.iTT-io • j- i • r • i •

banks. 01 the United States as security tor the issue oi circulating

notes by national banking associations.

unhod^'sTaSes Sec. 11. That whenever the trustees of the postal

bonds. savings fund have in their possession funds available for

investment in United States bonds they may notify the

Secretary of the Treasury of the amount of such funds

in their hands which they desire to invest in bonds of the

United States subject to call, whereupon, if there are

Bonds called United States bonds subject to call, the Secretary of the

for redemption. inn/.i • ri

Treasury shall call for redemption an amount of such
bonds equal to the amount of the funds in the hands of
the trustees which the trustees desire to thus invest, and
the bonds so called shall be redeemed at par with accrued
interest at the Treasury of the United States on and
after three months from the date of such call, and
B„„^g j.pj^j.„p^ interest on the said bonds shall thereupon cease: Pro-

to^boardof trus-^,^j^f^^ That the said bonds when redeemed shall be
reissued at par to the trustees without change in their
terms as to rate of interest and date of maturity: And

hoDds^soieL^^d. provided further, That the bonds so reissued may, in the
discretion of the Secretary of the Treasury, be called for
redemption from the trustees in like manner as they

KEGULATIONS GOVEENIXG DEPOSIT OF POSTAL SAVINGS FUNDS. 23

were originally called for redemption from their former
owners whenever there are funds in the Treasury of the
United States available for such redemption.

Sec. 12. That postal savings depository funds shall be^^jJ^f^J brSt
kept separate from other funds by postmasters and other ^P^^^^^^^^^y post-
officers and employees of the postal service, who shall be
held to the same accomitabihty under their bonds for
such funds as for pubUc moneys; and no person con-
nected with the Post Office Department shall disclose to Deposits held
any person other than the depositor the amount of any
deposits, unless directed so to do by the Postmaster Gen-
eral. All statutes relating to the safekeeping of and to safekoeping of

• , , . , f Til postalfunds made

proper accountmg for postal receipts are made appucable applicable.

to postal savings funds, and the Postmaster General may

require postmasters, assistant postmasters, and clerks at

postal savings depositories to give any additional bond he Additional

■, o -/ bond.

may deem necessary.

[Sec. 13. TJiat additional compensation shall l>e allowed ^^f^.^^^^^^^^lf^^^
postmasters at post offices of the fourth class for the^^^ff^^^yj^^
tran^saction of postal savings depository business. Such^-^^^^- seepage
compensation shall not exceed one-fourth oj one per
centum on the average sum upon which interest is paid
each calendar year on receipts at such post office, and
shall he paid from the postal revenues; hut postmasters,
assistant postraasters, clerics, or other eraployees at post
offices of the presidential grade shall not receive any
additional compensation ior such service.]

Sec. 14. That the sum of one hundred thousand dollars Appropriation,
is hereby appropriated, out of any money in the Treasury
not otherwise appropriated, or so much thereof as may be
necessary, to enable the Postmaster General and the
board of trustees to establish postal savings depositories
in accordance with the provisions of this act, including
the reimbursement of the Secretary of the Treasury for Reimburse-

. "^ . f ment of Secre-

expenses incident to the preparation, issue, and registra- 1 a r y of the
tion of the bonds authorized in this act: and the Post- ^Postmaster

' General may re-

master General is authorized to require postmasters and quire postal em-

^ -^ . plovces to trans-

other postal officers and employees to transact, in con- act" postal sav-

■t^ . , . mgs busmess.

nection with their other duties, such postal savings
depository business as may be necessary: and he is also ^Postmaster

^ •^ -^ 1 e 1 1 General may

authorized to make, and with the approval of the board make rules and

' « . . regulations sub-

of trustees to promulgate, and from time to time toject to approval

1 11 t r • -I 1 1°^ hoard of trus-

modify or revoke, subject to the approval of said board, tees,
such rules and regulations not in conffict with law as he

24 POSTAL SAVINGS SYSTEM.

may deem necessary to cany the provisions of this act
into effect.
crSiMlf St a 't*l Sec. 15. That all the safeguards provided by law for the
pH^bte to postal protection of public moneys, and aU statutes relatmg to
savings funds. ^]^q embezzlement, conversion, improper handluig, reten-
tion, use, or disposal of postal and money-order funds and
the punishments provided for such offenses are hereby
extended and made appHcable to postal savmgs deposi-
tory fmids, and all statutes relating to false returns of
postal and money-order business, the forgery, counter-
feiting, alteration, improper use or handling of postal and
money-order blanks, forms, vouchers, accounts, and rec-
ords, and the cUes, plates, and engravings therefor, with
the penalties provided in such statutes, are hereby ex-
tended and made apphcable to postal savings depository
busmess, and the forgery, counterfeiting, alteration, im-
proper use or handling of postal savmgs depository
blanks, forms, vouchers, accounts, and records, and the
dies, plates, and engravings therefor.
paySt ^f" &t Sec. 16. That the faith of the United States is solemnly
posits. pledged to the payment of the deposits made in postal

savings depository offices, with accrued interest thereon
as herein provided.
of^^JrfsM'iu'be Sec. 17. That the final judgment, order, or decree of
rfghts'^^in^ posta°i ^^J court of Competent jurisdiction adjudicatmg any
savings funds, piglit or interest in the credit of any sums deposited by any
person with a postal savings depository if the same shall
not have been appealed from and the time for appeal has
expired shall, upon submission to the Postmaster General
of a copy of the same, duly authenticated in the manner
provided by the laws of the United States for the authen-
tication of the records and judicial proceedings of the
courts of any State or Temtorj" or of any possession
subject to the jurisdiction of the United States, when the
same are proved or admitted within any other court
within the United States, be accepted and pursued by the
board of trustees as conclusive of the title, right, interest,
or possession so adjudicated, and any payment of said
sum in accordance with such order, judgment, or decree
shall operate as a full and complete discharge of the
United States from the claim or demand of any person or
persons, to the same.

Approved, June 25, 1910.

REGULATIONS GOVERNING DEPOSIT OF POSTAL SAVINGS EUNDS. 25

AN ACT MAKING APPROPRIATIONS FOR THE SERVICE OF
THE POST OFFICE DEPARTMENT FOR THE FISCAL YEAR
ENDING JUNE THIRTIETH, NINETEEN HUNDRED AND
THIRTEEN, AND FOR OTHER PURPOSES.

Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assernbled,

Sec. 10. * * * And provided further, That all expendi- -^"*^*-
tures in the postal savings system shall be audited by
the Auditor for the Post Office Department: And pro-
vided further, That the Postmaster General shall select 0^^°^^!:°^'*^^®'^
and designate the post offices which are to be postal sav-ofj^^^^^'snate
ings depository offices, and shall appoint and fix the tj.'^^^^^o/s "gl
compensation of such superbitendents, inspectoi's, and'^™-
other employees as may be necessary hi conducting, su-
pervising, and directiag the business of such offices, in-
cluduig the employees of a central offioo at Washington,
District of Columbia, and shall prescribe the hours drn'-ho^Efb^k/es*
ing which postal savhigs depository offices shall remain
open. He shall also from time to time make rules and latTonT^^o^dB^
regulations with respect to the deposits in and with-Siir*^ ''"^'
drawals of moneys from postal savings depositories and
the issue of pass books or such other devices as he may
adopt as evidence of such deposits or withchawals. The
provisions of the Act approved June twenty-fifth, nine- i^fofamend^d.^'
teen hundred and ten, are hereby modified accordingly.

n* 'P T* ▼ T* T» •1*

Approved, August 24, 1912.

AN ACT TO AMEND THE ACT APPR0\T:D JUNE TWENTY-
FIFTH, NINETEEN HUNDRED AND TEN, ENTITLED "AN
ACT TO ESTABLISH POSTAL SAVINGS DEPOSITORIES
FOR DEPOSITING SAVINGS AT INTEREST WITH THE
SECURITY OF THE GOVERNMENT FOR REPAYilENT
THEREOF, AND FOR OTHER PURPOSES."

Be it enacted by the Senate and House of Representatives
of fJie United States of America in Congress assembled,
That sections two and thirteen of the act approved
June twenty-fifth, nineteen hundred and ten, entitled
"An act to establish postal savings depositories for
depositing savings at interest with the security of the
Government for repayment thereof, and for other pur-
poses," be hereby amended to read as follows:

26 POSTAL SAVINGS SYSTEM.

otheTofficiari^fi "Sec. 2. That provisions of section three of the act

™^*^ostaF savta"s °^ J^^J ^^^^' cightoon hundxcd and eighty-four, entitled

matter. <^Yn act making appropriations for the service of the

Post Office Department for the fiscal year ending June

thirtieth, eighteen hundi'ed and eighty-five, and for

other purposes,' are hereby extended and made applicable

to all official mail matter pertaining to the business of

Cost of carrying t}ie postal savings svstem ; and hereafter the board of

postal savings ^ id ^ 7 ^ ^ ,-..

mail no longer to trustccs f or the control, supervision, and administration

be reported to . .

Congress. of the postal savings depository system shall not be

required to show in the annual report prescribed by
section one of the act of June twenty-fifth, nineteen
hundred and ten, estabhshing such system, the amount
of work done for that system by the Post Office Depart-
ment and postal service in the transportation of free mail.
No extra com- "Sec. 13. Postmastcrs, assistaiit postmasters, clerks,

pensation to post- ■" rvci •i-i

masters or postal or Other employees at post offices of the presidential

employees for j. ^ j. x

tr ansae tingo;rade, and postmasters at post offices of the fourth class,

postal savings® ^ sr r^ _ ^ 7

business. shall not be allowed or paid any additional compensa-

tion for the transaction of postal savings depository
business."

Approved, September 23, 1914.

AN ACT TO AMEND THE ACT APPR0\T:D JTNE TWENTY-
FIFTH, NINETEEN HUNDRED AND TEN, AUTHORIZING
THE POSTAL SAVINGS SYSTEM, AND FOR OTHER PUR-
POSES.

Be it enacted ly the Senate and House of Representatives
oj tJie United States of America in Congress assemhled, That
such part of section six of the act approved Jime twenty-
fifth, nineteen hundred and ten, authorizing a system of
postal savings depositories, as reads " but no one shall
tauonlemoved!'" t>e permitted to deposit more than $100 in any one cal-
endar month" is hereby amended to read as follows: ''but
the balance to the credit of any person, upon which
teYe?t"?b?aring interest is payable, shall not exceed $1,000, exclusive of
cfidft'^^of^'a d*^ accumulated interest"; and said act is further amended
positor. gQ ^]^g^^ ^j-^g proviso in section seven thereof shall read as

follows: ''Provided, That the board of trustees may, in
their discretion, and imder such regulations as such
intel-'^Jt-beaJin""^*^^^^ ^^^ promulgate, acccpt additional deposits not to
deposits. exceed in the aggregate $1,000 for each depositor, but

upon which no interest shall be paid."

EEGULATIOXS GOVERNING DEPOSIT OF POSTAL SAVINGS FUNDS. 27

Sec. 2. That postal savings funds received under 'the ^^^gP°si*<'^y
provisions of this act shall be deposited in solvent banks,
whether organized under National or State laws, and
whether member banks or not of the Federal reserve
system established by the act approved December
twenty-third, nineteen hundred and thirteen, being sub-
ject to National or State supervision and examination,
and the sums deposited shall bear interest at the rate of of^m^s™ ^^^^
not less than two and one-fourth per centum per annum,
which rate shall be uniform throughout the United States ^^^^^ *» ^« inl-
and Territories thereof; but five per centum of such funds ^^^'^ p^^ <^^^^

' -1 reserve.

shall be withdrawn by the board of trustees and kept
with the Treasurer of the United States, who shall be boa/d '^ o"i' Yrus-
treasurer of the board of trustees, in lawful money as a ^^*^"
reserve. The board of trustees shaE take from such
banks such security in public bonds or other securities, iiished"*ybai^'
authorized by act of Congress or supported by the taxing
power, as the board may prescribe, approve, and deem
sufficient and necessary to insure the safety and prompt
payment of such deposits on demand. The funds re-
ceived at the postal savings depository offices in each Postal savings
city, town, village, and other locahty shall be deposited j^^js^^^jon in
in banks located therein (substantially in proportion to
the capital and surplus of each such bank) willing to
receive such deposits under the terms of this act and the
regulations made by authority thereof: Provided, how-
ever, If one or more member banks of the Federal reserve Member tanks

' of the Federal

system established by the act approved December ^^s"^'® system

"^ . . '' ^^ , given preference.

twenty-third, nineteen hundred and thirteen, exists in
the city, town, village, or locality where the postal sav-
ings deposits are made, such deposits shall be placed in
such qualified member banks substantially in proportion
to the capital and sui'plus of each such bank, but if such
member banks fail to qualify to receive such deposits,
then any other bank located therein may, as hereinbefore
provided, qualify and receive the same. If no such
member bank and no other qualified bank exists in any baSk e^?s '°*^
city, town, village, or locality, or if none where such
deposits are made will receive such deposits on the terms
prescribed, then such funds shall be deposited under the
terms of this act in the bank most convenient to such
locality. If no such bank in any State or Territory is
willing to receive such deposits on the terms prescribed,
then such funds shall be deposited with the treasurer of Deposits with

treasurer.

28 POSTAL SAVINGS SYSTEM.

the board i>l ti"U3tees and shall be counted in making up

the reserve of five per centum. Such funds may be

All funds avail- withdrawn from the treasiu'er of said board of trustees,

mint of' deposi' and all Other postal savings funds, or any part of such

*""• funds, may be at any time withdrawn from the banks

and savings depository offices for the repayment of postal

savings depositor when required for that purpose. If at

Excess deposits any time the postal savings deposits in any State or Ter-

bo invested in ritorv shall excecd the amouut which the qualified banks

United States , ^ .„. . i i r i •

bonds. therein are wilhng to receive under the terms oi this act,

and such excess amount is not required to make up the re-
serve fund of five per centum hereinbefore provided for, the
board of trustees may invest all or any part of such excess
amount in bonds or other securities of the United States.
All funds ex- When, in the j udgment of the President, the general welfare

be invested by and interests of the United States so require, the board of

direction of the . , ^■, , «• ,i , i •

President. ti*ustees may invest all or any part oi the postal savmgs

funds, except the reserve fund of five per centum herein
provided for, in bonds or other securities of the United
Board of trus- States. The board of trustees may in its discretion
ct^ ^olt&i ?iv- purchase from the holders thereof bonds which have been
hoiders!^*^ ^^°^ 01" niay be issued under the provisions of section ten of the
act of June twenty-fifth, nineteen hundred and ten.
Interest and Interest and profit accruing from the deposits or invest-
payment of inter- ment of postal saviugs fuuds shall be applied to the pay-
ment of interest due to postal savings depositors, as here-
Excess to beinbefore provided, and the excess thereof, if any, shall
tai revenue. be covercd iiito the Treasury of the United States as a
Unauthorized part of the postal rcveuue : Provided further, That postal
fimds forbidden, saviugs fuuds in the treasury of said board shall be sub-
ject to disposition as provided in this act, and not other-
wise: And provided furtlier, That the board of trustees
Di.sposai of in- may at any time dispose of bonds held as postal savings

vestment bonds. , , i .-i i, j._-j.ii ^ c

to meet with- mvestmcuts and use the proceeds to meet withdrawals or

deposits by depositors. For the purposes of this act the

MeaninR ofword ''Territory" as used herein shall be held to include

ern orj . ^^^ District of Columbia, the District of Alaska, and Porto

Savings banks Rico, and the word ''bank" shall be held to mdude sav-

and trust com- . ■, -, iij_ • ^ • ii't_"

panies. lugs banks and trust companies doing a banking business.

Repeal of con- Sec. 17. That all laws or parts of laws in conflict with
the provisions of this act are hereby repealed.
Approved, May 18, 1916.

'^MBM^m

'}'Xo

ojjjlj

li^

Syracuse, N. Y.
PATJW.21,W0B

U.C.BERKELEY LIBRARIES

CDmfil7E7D

UNIVERSITY OF CAUFORNIA LIBRARY