The legislation aimed to get money out of hiding

In 1912, carrier service was announced for establishment in towns of second and third class with $100,000 appropriated by Congress.[35] From January 1, 1911, until July 1, 1967, the United States Post Office Department operated the United States Postal Savings System. An Act of Congress of June 25, 1910, established the Postal Savings System in designated Post Offices, effective January 1, 1911. The legislation aimed to get money out of hiding, attract the savings of immigrants accustomed to the postal savings system in their native countries, provide safe depositories for people who had lost confidence in banks, and furnish more convenient depositories for working people. The law establishing the system directed the Post Office Department to redeposit most of the money in the system in local banks, where it earned 2.5 percent interest.

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