DEPOSITORS  AND  DEPOSITS

93

but  did  not  urge  the  point,  for  he  admitted  that
the  evidence  so  far  available  was  that  minors
were  not  using  the  postal  savings  banks  very  extensively, ­
  and  that  comparatively  few  of  those
who  did  use  it  would  have  deposits  of  over  $1,000.
Senator  Smoot,  of  Utah,  in  the  course  of  debate
on  the  earlier  bill,  said  there  was  one  class  of
people  who  would  go  to  the  limit  of  $2,000.  “I
have  received  a  number  of  letters,”  he  said,
“stating  that  there  were  people  who  used  the
postal  savings  banks,  depositing  their  money  in
the  post  offices  of  the  country,  with  the  purpose
of  preventing  the  money  from  being  garnisheed;
.  .  .  .  and  they  felt  perfectly  safe  about  keeping ­
  it  from  their  creditors.” 30  Senator  Sherman, ­
  of  Illinois,  said  that  he  also  had  received
many  complaints  on  this  subject  from  a  great
variety  of  people. 87
Postal  savings  deposits,  being  debts  of  the
United  States  Government,  are  exempt  from
taxation  under  Section  3701  of  the  Revised
Statutes,  which  provides  that  “all  stocks,  bonds,
treasury  notes  and  other  obligations  of  the
United  States  shall  be  exempt  from  taxation  by
or  under  State  or  municipal  or  local  authority.”
Senator  Hitchcock,  of  Nebraska,  thought  that
36  Ibid.,  April  27,  1914,  p.  7808.
37  Ibid.,  April  27,  1914,  p.  7808.