The Postal Savings System and the Banks

Abstract

The United States Postal Savings System is today meeting with considerable opposition from bankers. Bankers' organizations, both local and national, are advocating its modification or elimination. Several bills directed to that objective were introduced in Congress during the last session, and, when the new Congress convenes, further attempts to procure such legislation will doubtless be made. At the same time, fewer local banks are accepting postal savings funds, the number having declined from 5,400 to 3,200 since 1934. To understand the attitude of the bankers and to appraise properly their contentions necessitates an historical review of the relationship between the system and the bankers as expressed through their public utterances and their actions.