120

POSTAL  SAVINGS

portion  in  the  various  qualified  banks.  Postmasters ­
  at  non-banking  offices  now  secure  funds
for  meeting  withdrawals  of  deposits  by  means  of
drafts  on  the  postmasters  to  whom  their  remittances ­
  have  been  made.
Collateral  Security
The  organic  Postal  Savings  act  of  1910  provided ­
  that  the  Board  of  Trustees  should  take
from  depository  banks  “such  security  in  public
bonds  or  other  securities,  supported  by  the  taxing ­
  power,  as  the  board  may  prescribe,  approve,
and  deem  sufficient  and  necessary  to  insure  the
safety  and  prompt  payment  of  such  deposits  on
demand.” 22  Securities  acceptable  under  this
provision  have  been  interpreted  to  be  limited  to
the  “general  obligations”  of  the  political  division
issuing  them  and  payable  “without  restriction  or
limitation  to  a  special  fund  from  the  proceeds  of
taxes  levied  upon  all  taxable  real  and  personal
property  within  the  territorial  limits  of  such  political ­
  division.” 23  Shortly  after  the  outbreak  of
22  In  the  amendment  of  May  18,  1916,  this  provision  was
reenacted;  but  after  the  words  “other  securities”  were  inserted ­
  the  words  “authorized  by  act  of  Congress  or.”  This
addition  had  reference  to  the  agitation  for  authorizing  postal
savings  funds  to  be  invested  in  the  securities  of  Federal
land  banks,  the  bill  for  the  establishment  of  which  was
then  before  Congress.
23  Rulings  of  Board  of  Trustees,  Nov.  18,  1913,  as  modified ­
  by  rulings  of  Nov.  19,  1914.