Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-12-20
VERY IMPORTANT
FINANCIAL EVENT.
Voluntary Increase In the Rate of Interest
BY the Strongest Savings Bank in the
World ana Explanation by
Its Presidcnt
BY JOHN D. HICKS.

" .
president The Bowery Savings Bank)
New York. Dec. 15.-One Of the nota-
BILE financial events OF the past week
was tie voluntary increase by the
Bowery Savings Bank of the rate of
interest paid to depositors from 3ls to
"A per cent per annum 1t is a step for
all the savings banks in the country to
follow. Mr.. John D. Hicks. president
of the bank, at our request, has writ
ten as follows on this event of national
Importance.
The position occupied by savings
banks in the financial world. in the
industrial development of the period.
and also as educational forces is not
generally understood. When people
think of these institutions they regard
) them merely as big or little repositories
OF the savings of the thrifty classes
oil the working portion of the commu-
nifty. Primarily that is what savings
banks are. That was originally the OBJ
1ect of their creation: but while that
central idea is still kept in view, while
II Is the animated spirit of these store
houses of small savings, they have In
the progress of years been developed
into establishments of the very highest
Importance in the domain of finance.
TO the people they are of the greatest
use In two ways. First. they provide
a safe place for their savings. and sec
3 OAaN' NHSS isJP " IQIuiSl lHe eullIe
community with those conveniences
which contribute so much TO the sum
of modern civilizations
Take, for instance, the savings banks
OF the State Of New York. In round
figures their deposits amount to more
than one thousand million dollars For
investment purposes that is a stipend
Gus sum. and without the facilities pro-
vided by these banks and the conf
dence reposed in their management.
-
1t could not have been concentrated for
any purpose whatever. All of 1t, ex-
cept. perhaps. a mere fraction. would
remain hidden away, inactive. inopera-
tive and a source Of worriment to its
owners.
Through the instrumentalities of the
savings banks. however, it is all. or
nearly ALL thrown into remunerative
action. and thereby contributes TO the
advancement of society. If it had not
been available for investment purposes
many cities. towns and villages that
are now equipped with all the conve-
nicnces Of modern times would have
TO endure the deprivation of them.
Fewer water works would be in exist
ence. fewer school houss. fewer church
ediilces. aud To that extent the masses
would suffer morally and materially.
AS an educational force the savings
banks are OF the highest value. Among
the one hundred and twenty thousand
centage are children-that is, parents
or guardians deposit in the name of
names of their children. can conceive
or no better method of impressng
habits of thrift and frugality upon the
rising generation and thereby helping
to make them good and useful citizens
They are thus taught i'm the most
effective way the value OF property and
the benefits accruing from 1t. This
fact, thoroughly Impressed upon their
do IOt, tI,1f 4
be laid for the requirement by them
in after years of a competence. and 1t
may be what Is called a great fortune
Whatever career they embark in inevi-
tably better fits them for their work
and strengthens them In all tie com
petitions of life.
The suggestion has been made-in
fact, the demand has been put forth in
one of the party platforms-that the
Federal government should estab lIsh
what are called postal savings banks.
and we are pointed TO the experience
In this line Of some foreign countries
] do not see how under our system.
the government could enter upon any
such undertaking, and. If It did. how
1t could successfully and prchiaely
manage 1t. And who would be the
safe managers or custodians Of TIE
FUNDS OF the so -called savings banks?
Surely not the average politician, Who
would be the judge of the investments
- "'I'ei viz btDOSilS SHOuiD De tnd0P
in order to pay interest? There are no
government bonds In the market. md
If they were the interest on them would
be less than that paid by the savings
banks. There are plenty of govern
ment bonds 10 be had but they are
paying less than>2 per cent. Interest.
I do not think the practical difference
lii the way of postal savings have Deen
sufficiently considered by the political
financicrs who run national political
conventions.