The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1889-02-28
AN EXAMPLE FOR TEE SOUTH.
What Mr.. Edward Atkinson Says of Saw
ingn Banks.
( Manufacturers Record.7

have asked the commissioner of savings
banks Of Massachusetts to give US the
latest figures of the deposits in this
State, and the figures relating to the
past which give in a certain way the
result of the business. Since you have
asked me to describe once more the
S savings bank system Of this State, aud
to give Ioy view ofits effect upon the
socia. order and the economic condi-
tions of the people, I will endeavor to
doso.
I believe the system has been carried
cut TO fuller extent in Massachusetts
THAI IN any other State, although the
savings banks Of the other New Eng
: land States and of New York closely
resemble ours. I have not the latest
figures of the total deposit in all these
States, but1 think that the total de-
posits Of all the savings banks in New
England and the State ofNew York on
the first of January came very close
upon 81 300, ,0Oe, 600. They are largest
ratio to the population and the number
of fdepositors in this State. There are
176 savings banks in Massachusetts.
These banks are virtually trusts, con-
trolted by unpaid trustees, but managed
by executive officers, who are paid
salaries proportionate to the importance
of the bank and the amount of lis de-
posts. Their investments are limited
by law to certain classes Of securities
United States bonds, bonds of New
England States, cities and towns,
mortgages upon real estate IN Massa-
chusetts, personal or corporation notice
guaranteed by three sureties, approved
by tue trustees, and in some cases
secured by collateral stock in national
banks.
On the S1st of October, 1888, the
funds belonging to, the depositors in
these banks amounted 60 1881 POS, 1866
standing at the credit of eS3,202 open
! accounts. The population of Massachu-
sets is about 2,00o, 600; therefore there
is an open savings bank account for
nearly every other person in the State.
THERE'S noway of determining positive
~ what part of these deposits belong
to people of considerable capital, and
what part to those who are commonly
called working people, The limit Of
deposit and accumulation of the credit
of any one account is $1,000. It has
been estimated that about 75 per cent.
elongs TO those who
mar De classed as working people, OF
people who are in the receipt of small
incomes.
The first savings bank was estab-
lished in Massachusetts, in 1916, since
which date the total sum deposited in
all the banks has been over 81 $50, ,000,-
600. There hss been lost from the fail
ure Of banks in 72 years less than one
seventh Of one per cent, and but
slight fraction Of this small percentage
resulted from dishonesty. In other
words, the total loss on Sl,450, 100000
placed in the charge OF unpaid trustees
for yhe benefit Of the mass of the people
OF tais State from bad investments, de-
fective titles, dishonesty and specula-
tior, all told, has been substantially
So, 2,e00,0 coo, and no4mole. There is
probably no other branch of business of
this magnitude conducted within the
Limits of the State, on which the losses
have been so slight.
Il is an open question whether or not
the greatest benefit to the mass Of the
people from the savings bank system is
secured by the inducement they offer
to save and invest small sums of money,
orin the lending the deposits upon
mortgages on real estate, by means Of
which very large numbers of the work
ing people Of the State have been en-
abled to become owners Of their dwell
ing places. Another benefit from the
lending of the funds has consisted Of
large loans made upon sufficient securi-
ty 20 manufacturing corporations OF
establishments, thereby converting the
deposits Of the operatives in the savings
banks into the working capital of the
.sez {ssSsies in which the money has been
I'D. Very large sums have been
led in this way to factory corpora
ls. The data do not exist for max
an exact comparison, but my own
apression is very strong that deposi-
sr il a savings bark at Lowell, for in
ssEaase,s Who has kept BIS moSags aSsgsssee-
posit for thirty years, has received a
better income than ifhe had become an
owner of the stock Of the factory in
which he has earned his money.
The growth of deposit is not readi-
" unde, stood by any who has not ex-
arnined the subject. Forinstance' When
the Newburyport Institution for Say
ines was established in 1920, Henry
Johnston, it's president, made the hrst
deoosit of twenty dollars. This deposit
has remained ever since, interest being
added and accumulations every hve
vears from time to time. In 1855 the
amount of that deposit was $771.
wheindirect effect of savings banks
noe only upon private character but
upon public character as well-if such
an expression may be allowed-may
also be considered. Let it be assumed
that a savings bank had been estab-
lished in given State or county, city
or town which had been subjected to
nisgovernment or which had not yet
been consolidated in an orderly way,
tha first question that would arise