120 
POSTAL SAVINGS 
portion in the various qualified banks. Post 
masters at non-banking offices now secure funds 
for meeting withdrawals of deposits by means of 
drafts on the postmasters to whom their remit 
tances have been made. 
Collateral Security 
The organic Postal Savings act of 1910 pro 
vided that the Board of Trustees should take 
from depository banks “such security in public 
bonds or other securities, supported by the tax 
ing 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 po 
litical 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 in 
serted 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 modi 
fied by rulings of Nov. 19, 1914.