THE  POSTAL  SAVINGS  BANK  ACT  47

the  law  had  four  distinct  merits,  which  may  be
called  respectively  legal,  educational,  political
and  fiscal:  (1)  The  legal  merit  was  that  it
strengthened  the  constitutional  position  of  the
bank  as  an  instrument  of  the  Federal  Government ­
  with  which  to  borrow  money  on  the  credit
of  the  United  States.  (2)  The  educational  merit
was  that  it  would  encourage  thrift  by  providing
a  safe  investment  for  postal  savings  bank  depositors ­
  when  their  deposits  should  reach  the  limit  of
$500  then  fixed  by  law,  and  that  it  would  encourage ­
  the  making  of  investments  (as  contrasted ­
  with  bank  deposits)  by  offering  to  the
poor  man  perfectly  safe  bonds  in  small  denominations ­
  which  would  yield  an  interest  rate  larger
by  one-half  of  one  per  cent  than  the  rate  paid  on
postal  savings  bank  deposits.  (3)  The  political
advantage  was  that  it  would  tend  to  place  the
public  debt  more  largely  in  the  hands  of  the
poorer  classes,  as  is  the  case  in  F  rance,  and  to  tie
their  interests  more  closely  to  those  of  the  Government. ­
  (4)  The  fiscal  advantages  were:  that
it  would  in  time  presumably  give  the  Government ­
  the  power  to  float  bonds  (not  carrying  the
privilege  of  being  used  as  security  for  national
bank  note  circulation)  at  a  substantially  lower
rate  of  interest  than  would  otherwise  be  possible  ;
and  that  it  would  open  a  possible  way  for  the
conversion  of  the  $63,945,460  three  per  cent