148

APPENDIX  A

Treasurer  of
board  of  trustees. ­

Security  furnished
  by
banks.

Postal  savings
funds.
Distribution  in
local  banks.

Member  banks
of  the  Federal ­
  reserve
system  given
preference.

Wlhere  no  local
bank  exists.

Deposits  with
treasurer.

with  the  Treasurer  of  the  United  States,  who
shall  be  treasurer  of  the  board  of  trustees,  in
lawful  money  as  a  reserve.  The  board  of  trustees ­
  shall  take  from  such  banks  such  security  in
public  bonds  or  other  securities,  authorized  by
act  of  Congress  or  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. ­
  The  funds  received  at  the  postal  savings
depository  offices  in  each  city,  town,  village,  and
other  locality  shall  be  deposited  in  banks  located
tal  and  surplus  of  each  such  bank)  willing  to
therein  (substantially  in  proportion  to  the  capireceive
  such  deposits  under  the  terms  of  this  act
and  the  regulations  made  by  authority  thereof  :
Provided,  however,  If  one  or  more  member  banks
of  the  Federal  reserve  system  established  by  the
act  approved  December  twenty-third,  nineteen
hundred  and  thirteen,  exists  in  the  city,  town,
village,  or  locality  where  the  postal  savings  deposits ­
  are  made,  such  deposits  shall  be  placed  in
such  qualified  member  banks  substantially  in
proportion  to  the  capital  and  surplus  of  each
such  bank,  but  if  such  member  banks  fail  to
qualify  to  receive  such  deposits,  then  any  other
bank  located  therein  may,  as  hereinbefore  provided, ­
  qualify  and  receive  the  same.  If  no  such
member  bank  and  no  other  qualified  bank  exists
in  any  city,  town,  village,  or  locality,  or  if  none
where  such  deposits  are  made  will  receive  such
deposits  on  the  terms  prescribed,  then  such  funds
shall  be  deposited  under  the  terms  of  this  act
in  the  bank  most  convenient  to  sues  locality.  If
no  such  bank  in  any  State  or  Territory  is  willing
to  receive  such  deposits  on  the  terms  prescribed,
then  such  funds  shall  be  deposited  with  the
treasurer  of  the  board  of  trustees  and  shall  be
counted  in  making  up  the  reserve  of  five  per