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94 POSTAL SAVINGS 
the bill, if passed, would encourage tax dodging 
through the withdrawal of money from ordinary 
banks just before assessment day and its tempo- 
raiy deposit in postal savings banks. 38 
The tax dodging argument apparently did not 
make a very strong appeal. The fact that the 
interest rate proposed to be paid by the Govern 
ment was but 2 per cent on the first thousand 
dollars, and nil on the second, the proposed limi 
tation to $2,000 on the total amount that could 
be deposited, the ease with which a would-be tax 
dodger could dodge taxes on cash funds without 
recourse to postal savings deposits, and the fact 
that Federal, State and city bonds paying higher 
interest rates than postal savings deposits were 
exempt from taxation—all of these facts weak 
ened decidedly the appeal of the tax dodging 
argument. 
As to the argument that the raising of the de 
posit limits would encourage evasion of debt, the 
proponents of the higher deposit limit argued 
that there had been very little evidence of such 
evasion under the old limits, and that the new 
ones were not high enough to make the danger a 
serious one. Furthermore, said Senator Bryan, 
of Florida, who was sponsor for the bill in the 
Senate, the question whether the additional de- 
88 Ibid., p. 7304.