26 
POSTAL SAVINGS 
deposits in the community in which the deposit 
was made.” 6 
This latter provision was of course part of the 
arrangement for keeping “at home” money de 
posited in the postal savings banks. Funds to 
meet withdrawals were to be paid by postmasters 
out of their daily postal receipts. Each postal 
savings bank, moreover, was to keep a small 
working balance to its credit at a local or neigh 
boring bank. The size of this “emergency credit” 
was to be determined for each postal savings bank 
by the Board of Trustees and might be increased 
or diminished at the discretion of the board. “If 
the emergency credit is insufficient to meet the 
demands of his office, he [the postmaster] must 
immediately report the fact to the Board of Trus 
tees, which reserves the right to defer payment 
until the necessary funds can be furnished the 
postmaster.” 7 A five per cent reserve against all 
deposits was required to be kept by the trustees 
at the Treasury in Washington. 8 
Thus postal savings banks were protected by 
a fourfold arrangement against dangers arising 
from sudden runs. In the first place, the post 
master had the use of his daily cash balance, in 
6 Sec- 8- , 
7 Postal Savings System Regulations, promulgated by 
authority of the Board of Trustees, section 16. 
8 Postal Savings act, sec. 9.