INVESTMENT OF FUNDS 
117 
Abolition of Postmasters' “Emergency Credits” 
Each postmaster now as heretofore is in 
structed to apportion his deposits of postal sav 
ings receipts among all the banks in his city or 
town, which are qualified as postal savings deposi 
tories, substantially in proportion to their respec 
tive capitals and surpluses. 18 All of the postal 
savings funds so deposited are to be entered to the 
credit of the Board of Trustees of the postal sav 
ings system. Prior to July 1, 1913, however, 
there was one exception to this latter rule, and 
that was described as follows in the official regu 
lations : 
“[This rule applies except for] an amount 
which will be specified by the board as an emer 
gency credit for use by each postmaster in meet 
ing withdrawals by depositors when he has insuf 
ficient funds on hand for such purpose. The 
18 This system which is apparently essential to the meet 
ing of two of the postulates of American postal savings— 
“keeping money at home” and satisfying “competing” 
banks—often becomes exceedingly cumbersome. Why this 
is true will be evident when one bears in mind that in most 
cities and towns' the postal savings deposits each day are 
small, while in a large proportion of places there are several 
banks among which the postal savings funds must be appor 
tioned. As early as 1912, for example, there were 40 quali 
fied depositories in Chicago, 30 in Philadelphia, 19 in New 
York, and between 10 and 12 in a number of other cities. 
Com. & Fin. Chron., A. B. A. Conv. SuppL, Sept. 21, 1912, 
p. 191.