148 
APPENDIX A 
Treasurer of 
board of trus 
tees. 
Security fur- 
nished by 
banks. 
Postal savings 
funds. 
Distribution in 
local banks. 
Member banks 
of the Fed 
eral reserve 
system given 
preference. 
Wlhere no local 
bank exists. 
Deposits with 
treasurer. 
with the Treasurer of the United States, who 
shall be treasurer of the board of trustees, in 
lawful money as a reserve. The board of trus 
tees shall take from such banks such security in 
public bonds or other securities, 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 de 
mand. The funds received at the postal savings 
depository offices in each city, town, village, and 
other locality shall be deposited in banks located 
tal and surplus of each such bank) willing to 
therein (substantially in proportion to the capi- 
receive such deposits under the terms of this act 
and the regulations made by authority thereof : 
Provided, however, If one or more member banks 
of the Federal reserve system established by the 
act approved December twenty-third, nineteen 
hundred and thirteen, exists in the city, town, 
village, or locality where the postal savings de 
posits are made, such deposits shall be placed in 
such qualified member banks substantially in 
proportion to the capital and surplus 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 pro 
vided, qualify and receive the same. If no such 
member bank and no other qualified bank exists 
in any 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 sues 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 the board of trustees and shall be 
counted in making up the reserve of five per