THE  POSTAL  SAVINGS  BANK  ACT

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ported  on  the  following  grounds:  the  greater
safety  of  the  funds  invested  in  government
bonds  or  secured  by  them  ;  the  stronger  constitutional ­
  position  given  to  the  bank;  and  the  fiscal
advantage  to  the  Government  in  times  of  emergency. ­
  They  were  opposed  principally  on  the
ground  that  they  would  result  in  the  withdrawal
of  funds  from  the  local  communities  and  in  their
transfer  to  financial  centers. 33
Postal  Savings  Bonds
Closely  related  to  the  subject  of  the  investment
of  postal  savings  bank  funds  in  government
88  Cf.  views  of  minority  members  of  Senate  Committee  on
Post  Office  and  Post  Roads,  House  Report  No.  1445,  61
Cong.,  2  Sess.,  pp.  102,  103.  Senator  Hey  burn  of  Idaho
said,  referring  to  the  bill  in  its  final  form,  a  few  days  before
it  became  law:  “This  is  a  through  ticket  to  the  money  of
the  country  to  New  York.  There  is  no  return  ticket  in  this
hill.”  Cong.  Rec.,  June  30,  1910,  p.  8816.  See  also  the
speech  of  Senator  Bacon  of  Georgia.  Ibid.,  June  21,  p.
8947.
I'or  a  criticism  of  postal  savings  banks  on  the  ground  that
they  will  draw  money  away  from  local  investments,  where  it
is  most  needed,  and  cause  it  to  flow  into  investments  of  a
national  character  bearing  low  rates  of  interest,  see  article
hy  George  E.  Roberts,  N.  Amer.  Rev.,  Feb.  15,  1907.
The  provision  that  the  funds  deposited  in  banks  might  be
withdrawn  and  invested  in  United  States  securities  by
direction  of  the  President,  whenever  in  bis  judgment  the
general  welfare  so  required,  was  strongly  criticized  on  the
ground  that  it  placed  a  large  and  dangerous  power  in  the
hands  of  the  President.