CONCLUSION 
131 
some period of readjustment. The type of de 
positor who uses the postal savings system is not 
the one who will be induced to withdraw deposits 
in order to invest the funds in securities yielding 
a higher rate of interest. To accomplish much 
in the direction suggested would require an 
amendment to the Postal Savings act. The fact 
that savings banks, with few exceptions, are not 
members of the Federal reserve system is not a 
strong argument against this proposal, because 
there is no sound public policy in encouraging 
them to join as active members. 1 The Federal 
reserve system is primarily a system for com 
mercial banks. Could not our best grade savings 
banks wisely be put on an equal footing, at least, 
with commercial banks which are members of the 
Federal reserve system, with regard to qualifying 
as depositories for postal savings funds? 
1 The Federal Reserve Board has recommended to Con 
gress an amendment to the Federal reserve act authorizing 
mutual savings banks not having a capital stock to become 
associate members of the Federal reserve system, under cer 
tain prescribed conditions. It is a very desirable amend 
ment. Federal Reserve Bulletin, Feb. 1, 1917, p. 101.