The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1890-05-26
GERMAN IDEAS
OF THRIFT.
The Savings Bank System Of
FrankfOrt-On-tie- Main.
CousuI-General Mason Tells CT the Methods by
Which the Germans Are Taught to Hoard
Their scanty Earnings.

C0nSul-General Mason, whose o1lclal res
idence is at Frankfort-on-the-Ma sends
to this Government an interesting report of
the sayings-bank system of that city, from
which the following brief abstract is taken :
Many of the great banking families of the
world had their origin in Frankfort, from
which branch houses have been established
in Paris, London, Vienna and New York.
There are not less than 200 banking houses,
public and private, in Frankfort, many Of
which are institutions with enormous cap
ital and wide-reaching connections. AS
would naturally be expected in city Of
this character, which, until twenty years
ago, had an Independent municipal autOn-
omy. the savings-bank system not only in
cludes some original features, but embCdies
in high degree the best results of expert
ence and competent management.
Nearly seventy years ago the Frankfort
Savings Bank, private institution. was
incorporated. At that time Frankfort was
free city, independent of all State
allegiance and control. 1t has three dis
tinct divisions or departments, as follows:
~ The Savings Deposit Bank (Sparkassel,
which includes a central bureau and two
branch offices in different quarters of the
city o. the Ersparungs Anstalt. separate
Dultdu uuucl vi management as liIO
preceding, differing from it in the fact that
ii collects from each depositor a stated
weekly deposit; and 90 the Penny Savings
Institution, which is a separate department
of the SparkasSe, but adapted in its
methods to the humblest class of deposit
tors, whose savings are limited to a
few pennies per day or week. All
of these departments are parts of one COM
prehensiye system, each with its own adj
ministrative officers, but all under control
of one central Board of Directors, who con-
Stitute and represent what is known as the
Polytechnic Association, chartered corpor-
alton, which has under its control, besides
the savings banks above mentioned, several
other institutions. among which the more
important are blind asylum, stenOgraphlc
institute and an important Industrial art
school. The growing authority of the
Polytechnic Association is vested in Pres
ldent and Board of Directors, by whom are
appointed the Directors of the savings
banks in the several departments OF that
Institution.
The Polytechnic Association was founded
IN June, 1876 ana on the l2tn oil June,
1922, it created and opened the savings
bank {Sparkasse). The ErSparungs An
Stalt was founded in 1926 as an independent
savings institution, with the special feature
Of collecting a weekly sum from each reg
istered depoSit0r, and it so remained until
November, 1866, when by resolution of its
managers it was placed under The control
of the savings bank (SpArkassel, and be-
came special department of that institu-
ton. A Third division was created Ia June,
1889. called the Penny Savings Bank, this
being intended for the benefit of the hum
blest class Of depositors.
SPARKASSE.
The savings bank proper includes a cen
trail bureau and two branch offices. The
main office is open from o'clock to II in
the morning, and from 3 o'clock to in the
afternoon; but the branch offices are only
open in the afternoon. Deposits may be
made in any sum from mark (23.S cents) to
1000 marks, but no ons person can deposit
over 5000 marks during the same year. and
the maximum sum which will be received
on deposit at any time from one person is
10000 marks, except at the option Of the
Directors. The present rate of interest Is
3 per cent, but this may be changed by the
Board OF Directors upon giving due notice.
Interest begins on the first day of the
month following the deposit. The depositor
is furnished with a depoSit-bOok bearing
a number and the seal of the bank, ! and
containing the regulations governing the
depositors, aud in which all deposits are
entered by the cashier or his assistant. and
at the end of each year the full amount
with interest Is written up.
Sums under 200 marks may be drawn out
at viii by any person having that amount
to his credit; for sums between 200 and 1000
marks a notice of four weeks must be
given, and over 1000 marks to the full
amount OF ones credit six months notice
must be given. Neither books nor deposits
Can be sold. Hypothetical or tran sferred,
except in case OF death when passed to an
inheritor, and when the entire deposit is
drawn out tie book is retained by the
bank and Cancelled. In 1923 the bank had
294 depositors, whose aggregate deposits
amounted to S6,934 marks; in 1870 there
were L. 314 deposltorS, and the banks capt.
a 7iR $50 marks and i'm 1898 thara
56,697 dep0Sitors, with an aggregate capital
OF S. 215, G97 marks. The receipts Tor that
veal alone were 6,319,276 marks, and the
capital withdrawn 5,15l,6J2 marks.
ERsPARUNGs ANSTALT.
The special object Of the Weekly Savings
Institution is TO induce people of small
but steady incomes to assume an Obligation
which eompels them to lay up a small sum
regularly. They are not compelled to go to
bank to make their deposits, but special
messenger waits upon them and collects it.
ANY one wishing to become depositOr
makes a personal application at the office,
receives copy OF the statutes and rules,
and pays one mark admission fee, and one
month thereafter is admitted to membership.
He then makes a statement Of the amount he
wishes to deposit weekly, say 90 pfennigs,
!, ., 5, i, Is, 8, 10, 10 or 20 marks, and the sum
so stated and registered can only be
changed at the beginning OF a new year. A
book of deposit numbered and bearing the
seal of the institution is given him when he
makes his first weekly payment. with the
date and amount written therein, and his
entire account is made up at the close Of
the year, or whenever he shall withdraw
portion OF his deposit from the bank Fifty
collections are made each year, the last two
weeks in December being omitted. IL a
depoSitor neglects or refuses to pay within
eight days, his account is closed. Mutual
deposits can only be made by man and
Wifp pitbpr 0f hmm wit . he
tire sum standing to their mutual credit.
The rate of interest is fixed by the man.
agement. Since November, 1882, it has
been 81 per cent. Changes in rates of in
terest must be announced six months be-
fore taking effect. Weekly deposits paid in
during the year commence to bear interest
on the LIST of January of the following year,
and the yearly interest is carried at the
close of the year to the credit of the depos-
itor. In comi uting interest, disbursements
to the depositor are only considered
when they exceed in amount the
sum of his own interest bearing de-
posts made during the current year.
and thereby reduce the amount of his in
terest-bearing capital deposited during a
previous year. In the case of person who
mas ceased making weekly payments, and
when the deposit has not been withdrawn.
Interest ceases at the end of three years.
Depositors can withdraw their money at will
After the death of a depositor no further
collections can be made from the widow or
heirs. and deposits cannot be attached for
private debts except by the judgment of a
court. Books of deposit cannot be pawned
or sold.
The following rules govern payments to
depositOrs: Two hundred marks or less can
be Withdrawn without previous notice; 200
to 500 marks, four weeks notice; 500 to 1000
marks, two mouths notice, and for all sums
above that limit, six months notice. The
same rules govern the DEPOSITS of a person
deceased, when his lawful representative
wishes to withdraw the deposits. The
same rules govern the closing of ac-
counts as in the savings banks. At the end
of each year an official statement is pub
lished, showing the condition of the bank,
and the amount of each deposit, and ali
revisions or corrections of the same, if any,
must be made within three months. The
system has proved successful. On the
last day of December, 1885, the Frankfort
Ersparungs Anstalt had 1o.94S deposltors,
of whom 1872 had begun during that year,
and their deposits. after deducting disburse.