INVESTMENT OF FUNDS 125 
annum, which rate shall be uniform throughout 
the United States and Territories thereof.” Al 
though there was considerable sentiment for a 
higher rate, the Board of Trustees, at its meet 
ing of December 31, 1910, fixed the rate at 2J 
per cent per annum payable January 1 and July 
1 each year “upon the average monthly bal 
ances.” The term “average monthly balances” 
was at first interpreted to mean the average of 
the balances held on the last of each month. In 
asmuch as the balances were normally growing 
throughout the month, the amount on the last day 
was unduly high, and this method of computing 
led justly to complaints on the part of depository 
banks. The basis was accordingly changed to the 
average daily balance, and this has been gener 
ally satisfactory. 
Profits Realized by Banks on Postal Savings 
Accounts 
Concerning the extent to which postal savings 
accounts have been profitable to depository banks 
it is unsafe to generalize. The profit varies with 
the prices of bonds acceptable as security; and 
the last few years have been years of unstable 
bond prices, and years of great uncertainty as to 
bond values in the future. It varies with the ex 
tent to which the deposits will cover the collateral