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POSTAL  SAVINGS

their  market  value  (unless  the  market  value  is
above  par  value).  This  last  class  consists  of  securities ­
  meeting  the  conditions  mentioned  for
class  (c),  except  for  the  fact  that  they  refer  to
places  having  a  census  population  of  not  more
than  30,000.
Under  date  of  March  30,  1917,  the  Board  of
Trustees  added  farm  loan  bonds  authorized  by
act  of  Congress  approved  July  17,  1916,  to  the
list  of  securities  constituting  group  (  a)  which  are
acceptable  at  their  par  value;  and  on  April  24,
the  board  added  to  the  same  list  interest  bearing
certificates  of  indebtedness  of  the  United  States
Government.
As  collateral  for  postal  savings  deposits,  mu-,
nicipal  bonds  have  been  by  far  the  most  popular
type  of  security  offered  by  banks;  and  the  demand ­
  for  high  grade  municipal  bonds  for  postal
savings  collateral  has  been  a  substantial  influence
in  the  market  for  a  number  of  issues.  It  is  an
interesting  fact  that  not  a  dollar  has  yet  been  lost
by  the  postal  savings  system  through  inadequacy
of  security  given  by  depository  banks.
Rate  of  Interest  Paid  by  Depository  Banks
Section  9  of  the  organic  Postal  Savings  act
says  that  the  rate  of  interest  paid  by  depository
banks  shall  he  “not  less  than  2j  per  centum  per