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 ex 
tensively, 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 keep 
ing it from their creditors.” 30 Senator Sher 
man, 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.