46

POSTAL  SAVINGS

bonds  is  the  provision  of  the  act 34  that  any  depositor ­
  in  a  postal  savings  bank  may  surrender  his
deposit,  or  any  part  thereof,  in  sums  of  $20,  $40,
$60,  $80,  $100  and  multiples  of  $100,  and  $500,
and  receive  therefor  the  amount  surrendered  in
United  States  coupon  or  registered  bonds  of  the
denominations  mentioned  above.  These  bonds
bear  interest  at  the  rate  of  2£  per  cent,  payable
semi-annually,  and  are  redeemable  one  year  from
date  and  payable  twenty  years  from  date.  They
may  be  issued  “only  (first)  when  there  are  outstanding ­
  bonds  of  the  United  States  subject  to
call,  in  which  case  the  proceeds  of  the  bonds  shall
be  applied  to  the  redemption  at  par  of  outstanding ­
  bonds  of  the  United  States  subject  to  call,
and  (second)  at  times  when  under  authority  of
law  other  than  that  contained  in  this  act  the  Government ­
  desires  to  issue  bonds  for  the  purpose  of
replenishing  the  Treasury,  in  which  case  the  issue
of  bonds  under  authority  of  this  act  shall  be  in
lieu  of  the  issue  of  a  like  amount  of  bonds  issuable
under  authority  of  law  other  than  that  contained
in  this  act.”
Aside  from  its  relation  to  the  subject  of  the  retirement ­
  of  United  States  2  per  cent  bonds  and
to  various  proposals  for  banking  reform  which
were  before  the  public  in  1910,  this  provision  of