THE POSTAL SAVINGS BANK ACT 
45 
ported on the following grounds: the greater 
safety of the funds invested in government 
bonds or secured by them ; the stronger constitu 
tional position given to the bank; and the fiscal 
advantage to the Government in times of emer 
gency. 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withdrawn and invested in United States securities by 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.