it

44

POSTAL  SAVINGS

in  bonds  or  other  securities  of  the  United  States,
but  only  by  direction  of  the  President,  and  only
when,  in  his  judgment,  the  general  welfare  and
the  interests  of  the  United  States  so  require.”
Postal  savings  funds  deposited  in  banks  were
to  bear  interest  at  a  rate  of  not  less  than  2^  per
cent.  The  provision  in  the  Senate  bill,  that  banks
might  give  indemnity  bonds  as  security  for  deposits ­
  of  postal  savings  bank  funds,  was  cut  out,
and  in  its  place  was  inserted  the  provision:  “The
Board  of  Trustees  shall  take  from  such  banks
such  security  in  public  bonds  or  other  securities,
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.”
These  provisions  for  the  regular  or  contingent
purchase  of  government  securities  were  supoffices
  in  each  locality  were  to  be  deposited  “in  banks  located
therein  (substantially  in  proportion  to  the  capital  and  surplus ­
  of  each  such  bank)  willing  to  receive  such  deposits
under  the  terms  of  this  act  and  the  regulations  made  by
authority  thereof.  ...  If  no  such  bank  exist  in  any  city,
town,  village,  or  locality,  or  if  none  where  such  deposits  arc
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  such  locality.  If  no
such  bank  in  any  State  or  Territory  is  willing  to  receive
such  deposits  on  the  terms  prescribed,  then  the  same  shall
be  deposited  with  the  treasurer  of  the  Board  of  Trustees,
and  shall  be  counted  in  making  up  the  reserve  of  five  per
centum.”  Sec.  9,  Post.  Sav.  act.