THE POSTAL SAVINGS BANK ACT 
49 
The opposition to authorizing the investment 
of postal savings bank funds in 2 per cent bonds 
was very strong, particularly in the Senate; and 
to save the bill from defeat an amendment pro 
posed by Senator Borah was adopted shortly be 
fore the bill came to its first vote in the Senate. 
It provided “that no part of said funds shall, in 
any event, be invested in bonds or other securi 
ties bearing interest at less than 2| per cent per 
annum.” This amendment, however, did not sur 
vive the overhauling which the bill received in the 
House; and when the bill was returned to the 
Senate it contained no limitation whatever as to 
the character of United States securities in which 
postal savings bank funds might be invested. 
We have now discussed the movement leading 
to the establishment of a system of postal savings 
banks in the United States and the chief provi 
sions of the organic postal savings bank law of 
1910. It will be our next task to discuss the 
workings of the system since it opened its doors 
for business January 8, 1911. For convenience 
the subject will he treated under the following 
heads, to each of which a chapter will be devoted: 
( 1 ) administrative organization, and the selection 
of post offices for postal savings banks; (2) de 
positors and deposits; (3) investment of postal 
savings funds.