122

POSTAL  SAVINGS

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has  passed  upon  the  legal  acceptability  of  all
bonds  submitted  as  security  for  postal  savings
deposits. 25
The  Board  of  Trustees  in  its  first  Regulations
for  the  Guidance  of  Banks,  issued  December  31,
1910,  made  the  following  ruling 26  in  regard  to
the  securities  acceptable  for  postal  savings  deposits: ­

"The  following  described  securities  at  rates  respectively ­
  designated,  will  be  accepted,  [and  no
other]  ...  (a)  Interest  bearing  bonds  of  the
United  States,  bonds  issued  by  the  Government
of  the  Philippine  Islands,  and  bonds  of  the  District ­
  of  Columbia  and  the  Government  of  Porto
Rico  will  be  received  at  their  par  value,  (b)
Bonds  of  any  State  of  the  United  States  and
bonds  of  the  Territory  of  Hawaii  will  be  received
at  90  per  cent  of  their  market  value,  such  market
value  not  to  be  considered  as  exceeding  par.
(c)  Bonds  of  any  city,  town,  county,  or  other
legally  constituted  municipality  or  district  in  the
United  States  which  has  been  in  existence  for  a
period  of  ten  years,  and  which,  for  a  period  of
ten  years  previous,  has  not  defaulted  in  the  pay-25
  An  account  of  his  work  in  this  connection  and  summaries ­
  of  his  decisions  will  be  found  in  his  annual  reports.
26  Regulations  for  the  Guidance  of  Banks  Qualifying  as
Depositories  of  Postal  Savings  Funds,  etc.,  issued  by  authority ­
  of  the  Board  of  Trustees,  1911,  pp.  4-5.