Daily camera., 1897-12-22
THRIFT IN GERMANY.
Savings Banks We'll Patronized IN
the Faderland
The Whole TeutOnic Race Seemingly
Gifted with the Habit Of Fry
EnIity and Forehand-
edness.

|
edness.
In Germany the savings bank sys-
tenn is managed BY the municipal gov
ernmcnts, instead Of the national all
thoritics, as in England, France, Be-
giu1n, Italy and other European coun-
tries. The system dates back for near
ly "a, century, and. with the exception
rof some unimpOrtant details, Is UNI
form throughout the empire. German
thrift is proverbial. There are no other
people in the world who can do without
Injuries and things that they do not
actually need with SO great degree
Of lcontentment. From the cradle the
children are taught economy 1t is as
much q matter of education as the
catcchism. In some of the schools the
children are instructed to gather during
their play hours, and on their way to
and from their homes, al such ap-
pnrently valueless objects as old bottles,
tin cans. refuse metals, etc, which are
sold to the junkshops and the proceeds
deposited to the credit of the child
in the nearest savings bank The same
spirit that inspires this economy has
caused the number of "depositors in
the savings banks of the empire TO oE-
coed the number of households. 1t is
often the case that every child and
every servant in q family has his own
account at the bank, which, when 1t
amounts to certain sum, is withdrawn
for permanent investment.
The sllsual rate CT interest paid by
the municipal savings banks in Ger
many Is, three per cent, and although
their management is intrusted to the
municipalities, the banking inspectors
,of tic general government exercise
ISupcrvision over them. There is usual
" a general office, with Z director in
chief at the, city hail, whose principal
duty is to receive remittances from
branch Offices that are established in
every ward. These funds he invests
in government bonds or in securities
of equal valne. The latitude OF invest
ment is much greater than is allowed
! the postal savings banks authorities
in England and France. The funds Iaay
be inYcsted in 'gilt-edged real estate
mortgages, and even in the erection OF
buildings, but before this is done the
proposition must be submitted to the
committee Of the common council
which has jurisdiction. over the saw
ings banks. This committee, which is
composed OF practical fnanciers, bank
ers, merchants and manufacturers and
men who arc in the habit Of handling
money, acts as q sort Of board Of di-
rectors for The system.
In Berlin there are 70 branch Offices,
With 4S3 600 dcpositors out Of ropnla-
| ton of / 500 goo, and the total deposits
are q little more than %40,G00,0C0. In
Dresden. the savings banks show a still
larger utility in proportion to the pop
ulation. Although the number Of peo-
pie in Dresden is only about one-fifth
as many as in Berlin, there are half
as many dcpositors in the savings
banks, and the deposits exceed &@2 &c.,
900. In some Of the other cities thc
proportion is much larger. In the town
| of la-Chapelle, for example, with
only 11o,489 population, there arc over
10000 depostors, with credits OF more
than $4,000 OG0. In Altoona, a city of
14OGJO people, there are. over 10000
depositors. with nearly $2O,000,CO0 to
their credit
The late Emperor Frederick was
great believer in the postal savings
bank system. and if he had lived it is
probable that it would have been adopt
ed in Germany long ago.
In addition to the municipal savings
institutions, there has been a system
Of private associations, known as the
for the last rs or 80 years, which are
managed On q plan very much like that
of ordinary savings institutions in the
United States, with some Improvements.
They are under the supervision of the
| government, and are inspected from
time to time by public officials. There
is generally a central office, at which
deposits are received and checks are
paid, and branch offices at various con-
vcnient locations for the receipt Of de
posits alone. The amount of deposits
is limited by law to 5000 marks. The
rate of interest is fixed annually on
January l by the board OF directors,
and formal advertisement is made Of
that fact in the newspapers. At pres
ent it is three per cent. Under the
rules of the bank not more than eco
marks can be checked out on any one
day, four weeks notice must be given
for the withdrawal of LOGO marks and
under, and six months notice of larger
sums, although the board Of directors
can suspend this rule at their discre-
| ton.
The first bank Of this kind was es-
| tablished in Frankfort in 1898, and dur
| ing the first year there were 294 de-
! positors, with credits amounting to S6.-
| 934 marks. At the last report there were
56,697 depositors out of population of