The herald., 1897-05-22
oFEEcn on THn HnRALp.

OTEICD OF THE HDHALDy
Los Angsles May q, 1897.
Nunicipat savings banks have long been
established in Germany and are found in
almost all the large towns In the empire.
In most of the important German towns
the number OF depositors in the publicly
managed savings banks considerably ex-
ceed the whole number OF families in the
town. In some cities the depositors are
twice ~ numerous a. the households.
The rules and methods of municipal saw
ings banks differ considerably in matters
Of detail. Most Of them pay a yearly In
terest Of about 8 per cent. The conven-
ience OF depositors u served In the larger
places by the maintenance Of q great num-
ber OF branch offices scattered through
the different wards and neighborhoods.
Thus the Berlin savings bank system has
seventy-five or more receiving offices. and
the Hamburg system has about forty.
Berlin has more than 100000 depositors,
with total deposits approaching $4,000. 900
marks. The Hamburg deposits had passed
the 1oo000.000 marks point several years
ago, and were rapidly growing in volume.
Dresden makes the remarkable showing
OF nearly 100000 outstanding depositors'
books. with total deposits we'll exceeding
$1,000 900 marks Leipsic, Madgeburg, Han
over, Dusseldorf and others carry, in pro-
portion to the population, marvelously
large sums In the municipal savings banks.
distributed among the very great number
Of depositors. 1t would seem that in AK
La Chapelle almost every man. woman
and child holds bank book. At the be-
ginning Of 1890. 10000 savings bank books
were outstanding there. with credits of
more than 75.0O0.0 900 marks. The banks are
administered by the public authorities at
4 minimum Of expense. Thus funds are
invested in imperial. national or municipal
interestbearing securities. It IL the policy
to pay az high rate as possible to de-
positors.
s c. c. Colby, ex-Canadian cabinet min
lister. who recently made trip to the
United States, has, since his return to
Canada. talked freely Of what he con-
siders the evils Of the United States ma
tionat banking laws. He says the defec-
tiveness of the United States banking sys-
tenn is responsible for great deal of the
depression that has been noticeable of late.
In his judgment the system does not meet
present requirements, the banks being pre-
cluded from giving the necessary accom-
modations to move crops, ETC., and as a re-
suit there have been many failures. Mr..
Colby believes the silver agitation was an
outcome Of the insufficient banking facili-
ties Of the country. The Canadian sys-
tenn of banks with large capital with
branches in different centers and power to
issue currency guaranteed by the govern
ment. he believes. would work to the ad-
vantage of the United States and he says
the new secretary OF the treasury. Lyman
J. Gage. is favorable to this plan.
The Bank Of England is allowed by law
to Issue paper notes to an amount which
is equal In American money to $S4, 900, ,000
After that amount has been issued the
bank may also make further issues of
paper notes. as its directors may choose
on the following conditions: For every
paper pound beyond the amount named
the bank must keep In its vaults an equal
amount of either gold or silver. The law
provides that the reserve shall consist Of
at least three-fourths gold and only one
fourth may be silver.
The British consul at Rouen reports that
In order to escape the French protective
tariff Swedish horseshoe nail maker has
founded factories in different parts of
France, and great Scotch firm of lino-
leum makers Is erecting works near
Rouen. Near the same place is an old
established English industry, which sends
many hundreds of tons Of artificial wool
(prepared from woolen rags) annually to
Dewsbury, where 1t serves for making
cheap cloth and shawls.
4 +
The Chicago board of trade will retire
an issue Of $1.250,0O0 per cent bonds, SUBJ
stituting for them a similar issue Of 1 per
cent bonds.
\ \ +
The secretary of the treasury has deter
mined to cancel the new 81, 81 and IS silver
certificates outstanding as they come into
the treasury The total foots up $16,cS0.-
600 ones. $s,144.oOo twos and O,oOO.0 900 fives
$5, ,424. 900 In all.
Bond Investments.
The Mutual Fire Insurance connapv ~