127 
INVESTMENT OF FUNDS 
of government security for the thrifty poor, and 
particularly for those whose deposits in the postal 
savings banks have reached the legal maximum. 
These bonds have been issued on the first day of 
each January and July since the postal savings 
system was put into operation, and the total is 
sue up to the close of the fiscal year 1917 was 
$10,000,000. Of this sum approximately 87 per 
cent was, on request, issued in the registered 
form, which indicates, in the judgment of the 
Third Assistant Postmaster-General, “that they 
were purchased for permanent investment.” 30 
On November 8, 1911, it was reported in the 
newspapers that some of these bonds had been 
sold at 92J. The report, which was apparently 
false, 31 caused some anxiety, and the Board of 
Trustees, who were authorized by the Postal 
Savings act (section 10) to invest postal savings 
funds in these bonds, promptly passed a resolu 
tion to purchase them at par upon the application 
of any holder, and to make immediate payment 
therefor in cash. Up to February 1, 1917, the 
board had purchased $2,045,920 worth of these 
bonds. 
80 Ann. Rep., 1916, p. 11. 
31 The New York Times of November 18, 1911, quoted 
Postmaster-General Hitchcock as saying that “the only 
basis for the rumor of an actual sale at that price [92%] 
was an offer . . . by a New York broker to purchase $200 
of the bonds below par, which was not accepted by the 
holder."