ADMINISTRATIVE ORGANIZATION 53 
Selection of Depository Post Offices 
The postal savings system was inaugurated in 
January and February, 1911, by the opening of 
one postal savings bank in each State and Terri 
tory. From that time forward the work of ex 
tending the system to other places proceeded 
rapidly. By the end of the fiscal year 1913 banks 
had been opened in 12,151 post offices, including 
all Presidential offices and about 4,000 offices of 
the fourth class, also in 667 branches and sta 
tions. This fiscal year showed the high water 
mark in the number of banks. The Department, 
however, had moved too fast in opening new 
banks, particularly in fourth class post offices. It 
was pointed out by Representative William H. 
Stafford of Wisconsin, 4 in Congressional debate, 
that of the 4,000 fourth class post offices 3,000 
either had no deposits at all or deposits of only 
one dollar. On the fee basis then used for com 
pensating postmasters for their services in postal 
savings work, in these 3,000 offices average com 
pensation allowed was 27 cents a year. 5 Yet the 
auditors of the Post Office Department kept a 
separate account with each of these offices, and 
4 Cong. Rec., Dec. 15, 1913, p. 928. 
5 Representative Madden of Illinois, a member of the 
House Committee on Post Office and Post Roads, Cong. 
Rec., Dec. 10, 1913, p. 654.