New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1853-04-28
Ratio of Div


The average ratio of the dividend to the investments
is ADS per cent for the institutions ont OF Boston, and
567 per cent for those in it, which shows obviously
enough the superior advantages OF large INSTITUTIONS
over small ones however economically the latter may
he managed Most of these institutions, or at any rate
the most important of them declare semiannual dlyl-
dend of four per cent. all deposits that have been
made for six months before. and whatever is earned
over the four per cent is divided in i've years on
enosts o not less than wears standing in proportion
10 the time during which the deposits have been IN the
bank Thus if the extraordinary dividend Is four per
cent deposit which has been IN the bank the whole
five wears since the last dividend will draw twenty per
cent and will thus have been earning elght per cent
per apnum if we neglect the compound interest on the
last dividend This arrangement is supposed to encoqr
age the permanence OF the deposit but IN the cy IN
sttutiops il does not 10 be wholly successful u
that end for the depOsitOrs and deposits, though
constantly increasing are subject To considerable
iuctustion from one dividend 10 another, whereby IL
happens that a good deal of money deposited
fails of participating at all in the dividends. In
case of the two principal City institutions (the new
third one is yet quite lncOnsderabe) Il Is easy 70 acer
tain very nearly the proportion OF the deposits which as
of receiving anv dividend BY reason OF uctuat0n Max
inc the ten wears of the Suffolk Savings Bank commence
one wear later so as include its extraordinary divl
depd of the present YEAR and We have about S9l9O as
the amount of the two extraordinary DIVIDENDS OF pc
cent declared BIZ the Suffolk Savings Bank and the PROV
deut Institution for Savings in the last ten years Dou0
Inc this sum we have the amount OF the dividends shared
nv about SOB coo of the invested capital at per
cent The total capital reported as invested during the
n wears is equal 10 about i0O0eOOO invested for one
year SubtractiDg the above sum, which drew per
cent there is another OF s2O0O,OOO which drew per
conf and the remaining S5000,0O0 nothing at all We
infer from this that the average, there Is always de-
nosted and nresed too in principal Savings Banks,
M less than 100000 which is earning nothing for us
ocu,rs on account OF fuctuaton And as these depos-
n. lose their dividends either by being withdrawn before
dividend is declared by not having been made three
months before one il follows that the half million stands
for douhle or treble that Of poor peoples money
which visits the Savings Bank in the course % year
without profit TO its owners
Whether the dividends could not be made higher con-
tenty with perfect safety of the deposits Is question
bicb will not undertake TO discuss But, az this mo-
nent when there is great avidy for tbe enlarge
menr of bank capital, arising quite as much from the
wish 10 borrow as to lend cannot fail 10 be seen tha
,vro institutions having the management Of S6O0O,OI
of funds which are not expected TO yield the owner
ouite six per cent and half of THAI payable only
in FIVE wears hare great power TO bless somebody
The oldest of these the Proyident, chartered il
Isle By its initial Bylaws, none of its twenty fou
Trustees could be borrowers and the Institution
TO receive deposits beyond the amount Of $780, 900
that being probably much as its officers supposed the
| could afford TO manage gratultousy. For long tim
its deposits have amounted to more than s3OoOW