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  proposed ­
  by  Senator  Borah  was  adopted  shortly  before ­
  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  securities ­
  bearing  interest  at  less  than  2|  per  cent  per
annum.”  This  amendment,  however,  did  not  survive ­
  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  provisions ­
  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)  depositors ­
  and  deposits;  (3)  investment  of  postal
savings  funds.