Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-10-02
THRIFT IN GERMANY
The Savings Bank System in the Father
land.
The whole Teutonlc Race Seemingly
gifted with the Habit Of Frugal-
ity and Forehandedness.
Berlin Letter in the chicago Recor,.

In Germany the savings bank system Is
managed by the municipal governments,
instead Of the national authorities. as In
England, France, Belgium. Italy and other
European countries. The system dates back
for nearly a century, and, with the excep-
ton of some unimportant details, is uni
form throughout the empire. German thrift
is proverbial. There are nc other people in
the world who can do without Injuries and
things that they do not actually need with
80 great degree Of contentment. From
the cradle the children are taught econ
omy. 1t is as much q matter of education
as the catechism. In some Of the schools
the children are instructed to gather dur
ing their play hours. and on their way to
and from their homes. all such apparently
valueless objects as old bottles, tin cans,
junkshops and the proceeds deposited to
the credit OF the child In the nearest saw
ings bank. The same spirit that inspires
this economy has caused the number Of
pire to exceed the number Of households.
1t Is often the case that every child and
every servant In a family has his own ac-
count at the bank, which, when 1t amounts
to certain gum, Is withdrawn for perma-
nent investment.
The usual rate of interest paid by the
municipal savings banks in Germany Is 3
per cent, and, although their management
ing inspectors Of The general government
exercise a supervision over them. There is
usually general Office, with director in
chief at the city hall, whose principal duty
Is to receive remittances from branch off,
ces that are established in every ward.
These funds he invests in government
bonds or In securities Of equal value. The
latitude of investment is much greater than
IL allowed the postal savings bank author
tiles In England and France. The funds
may be invested in gilt-edged real-estate
mortgages and even in the erection of
buildings. but before this is done the propo-
sition must be submitted to the committee
OF the common council which has jurisdic-
ton over the savings banks. This COM
sm1ttee, which Is composed of practical
fnanciers, bankers, merchants and manu-
lecturers and men who are in the habit Of
handling money, acts as q sort Of board Of
directors for the system.
In Berlin there are seventy-nine branch
offices, with 4S3 eco depositors out of a
population of 100000, and the total de-
posits are little more than sc, 1000, 600 In
Dresden the savings banks show a still
larger utility In proportion to the popula-
ton. Although the number Of people in
Dresden is only about one-fifth as many as
in Berlin. there are half as many depos-
Hors in the savings banks, and the depos-
Its exceed $22,O0O.O00. In some of the other
cities the proportion is much larger In
the town Of Aix-la-Chapelle, for example.
with only ITO. 4S9 population, there are ever
10000 depositors, with credits Of more
than 1900, 00O In Altoona, a city Of 49,
900 people, there are over 10000 depos-
itors. with nearly $2O,OO0OOO to their credit.
The late Emperor Frederick was q great
believer in the postal savings banks sys-
tenn. and If he had lived 1t is probable that
1t would have been adopted in Germany
long ago.
In addition to the municipal savings in
situations, there has been a system Of pri-
vate associations known as the Eberfeld
banks. in southern Germany for the last
seventy-f1ve or eighty years, which are
managed on plan very much like that of
ordinary savings institutions in the United
States, with some improvements. They
are under the supervision of the govern
rnent and are inspected from time to time
by public officials. There Is generally q
central office, at which deposits are re-
ceived and checks are paid and branch
offices at various convenient locations for
the receipt of deposits alone. The amount
Of deposits Is limited by law to 5000 marks
The rate OF interest is fixed annually on
January l by the hoard Of directors, and
formal advertisement is made Of that fact
in the newspapers. At present 1t is per
cent. Under the rules of the bank not
more than 200 marks can be checked out
on any one day, four weeks notice must
and under, and six months notice of larger
sums, although the board Of directors can
suspend this rule, at their discretion.
The first bank Of this kind was estab-
lished In Frankfort in 1893, and during the
first year there were 294 depositors with
credits amounting to SG,934 marks. At the
last report there were Sc, 697 depositors out
Of a population of 229,O0O, with credits
amounting to SO, 215,697 marks.