INVESTMENT OF FUNDS 
107 
trustees for investment in bonds or other securi 
ties of the United States”; (3) a sum, which 
normally should not be less than 65 per cent of 
the total postal savings deposits, to be kept on 
deposit “in solvent banks, whether organized un 
der national or State laws, being subject to 
national or State supervision and examina 
tion. . . .” 8 
Postal savings funds deposited in banks were 
to bear interest at a rate of not less than 2j per 
cent, and the Board of Trustees was to require 
depository banks to give adequate security for 
such deposits, in the form of “public bonds or 
other securities, supported by the taxing power.” 
Investment in Bonds 
Aside from the purchase of a few postal sav 
ings 2J per cent bonds ($1,558,500 in all down to 
June 30, 1916) from their holders in order to 
maintain their parity, 4 the trustees of the postal 
savings system have made no purchases of bonds 
whatever. The banks, despite their early opposi 
tion to the system, showed great eagerness in 
most localities to secure postal savings deposits, 
8 The word “bank” was declared by the law (sec. 9) to 
“include savings banks and trust companies doing a banking 
business.” 
4 Infra, p. 127.