CONCLUSION

131

some  period  of  readjustment.  The  type  of  depositor ­
  who  uses  the  postal  savings  system  is  not
the  one  who  will  be  induced  to  withdraw  deposits
in  order  to  invest  the  funds  in  securities  yielding
a  higher  rate  of  interest.  To  accomplish  much
in  the  direction  suggested  would  require  an
amendment  to  the  Postal  Savings  act.  The  fact
that  savings  banks,  with  few  exceptions,  are  not
members  of  the  Federal  reserve  system  is  not  a
strong  argument  against  this  proposal,  because
there  is  no  sound  public  policy  in  encouraging
them  to  join  as  active  members. 1  The  Federal
reserve  system  is  primarily  a  system  for  commercial ­
  banks.  Could  not  our  best  grade  savings
banks  wisely  be  put  on  an  equal  footing,  at  least,
with  commercial  banks  which  are  members  of  the
Federal  reserve  system,  with  regard  to  qualifying
as  depositories  for  postal  savings  funds?

1  The  Federal  Reserve  Board  has  recommended  to  Congress ­
  an  amendment  to  the  Federal  reserve  act  authorizing
mutual  savings  banks  not  having  a  capital  stock  to  become
associate  members  of  the  Federal  reserve  system,  under  certain ­
  prescribed  conditions.  It  is  a  very  desirable  amendment. ­
  Federal  Reserve  Bulletin,  Feb.  1,  1917,  p.  101.