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POSTAL SAVINGS 
deposited; and it varies with the actual amount 
of deposits obtainable—in many cases the ac 
counts are too small to be worth the trouble. 
Many banks have not found it to their advantage 
to qualify as depositories, while others have real 
ized good profits on such deposits, 28 and in many 
communities the competition for them is keen. 
The advantage of advertising oneself as a de 
pository of United States postal savings funds is 
valued highly by many banks. 
Postal Savings Bonds 
A discussion of the postal savings system 
would be incomplete without a reference to the 
postal savings 2£ per cent bonds authorized by 
the act of 1910. 29 The primary object of these 
bonds, which are issued in denominations as low 
as $20, is to provide a safe and convenient form 
28 The writer has on his desk a circular issued by a promi 
nent bond house, in which are computed the rates of interest 
that would be realizable on the net investment in the case of 
$100,000 par value of six different high grade bonds, against 
which it is assumed the maximum postal savings deposits 
allowed by the Department’s regulations would be received. 
The rates per annum on the net investments vary from 4.8 
per cent to 19.36 per cent. 
Banks often complain of the large “amount of red tape” 
that deposits of postal savings funds entail. 
20 The bonds are redeemable at the pleasure of the United 
States after one year from date of issue, and are payable 
twenty years from date of issue.