114 
POSTAL SAVINGS 
Cong., 2 Sess.), whose history has previously been 
narrated in connection with the discussion of the 
raising of the limits on deposits, 15 was passed by 
both houses of Congress, authorizing deposits of 
postal savings funds “in solvent banks, whether 
organized under national or State laws, and 
whether member banks or not of a reserve bank, 
. . . being subject to national or State super 
vision and examination. . . On September 
11, 1914, President Wilson vetoed this bill, and 
communicated his reasons therefor in a veto mes 
sage to Congress. 10 In this message he said: 
“When the Federal Reserve act was passed it 
was thought wise to make the inducement to 
State banks to enter the Federal reserve system 
as many and as strong as possible. It was, there 
fore, provided in that act that Government funds 
should be deposited only in banks which were 
members of the Federal reserve system. The 
principle of such a provision is sound and indis 
putable. The moneys under the control of the 
Government ought to be placed only in those 
banks which are most directly under the super 
vision and regulation of the Congress itself. It 
was recognized, also, that the scattering of gov 
ernment deposits in small amounts among too 
18 Supra, pp. 85-87. 
16 House Doc. No. 1162, 68 Cong., 2 Sess.