INVESTMENT  OF  FUNDS

107

trustees  for  investment  in  bonds  or  other  securities ­
  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  under ­
  national  or  State  laws,  being  subject  to
national  or  State  supervision  and  examination. ­
  .  .  .” 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  savings ­
  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  opposition ­
  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.