The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-12-27
) SAVINGS BANK DIVIDENDS
ofs.Interest to 10000 or $4,000 People in
y ----.-.-. MINNEAPOLIS. - =

81. minneapolis.
There is perhaps no subject of more
general interest to the people of Mime
apolis than reliable information about saw
ings banks. 4 In q recent interview with
a Journal reporter, Mr.. Adam Hannah,
the careful and experienced treasurer OF
The Savings Bank of Minneapolis, said:
1T is very peculiar condition of mind
into which the people Of Minneapolis,
especially that class patronizing savings
banks, have fallen when they think that
any financial; institution that pays more
than 8 per cent is not respectable. This
idea shows the financial fallacies that are
apt to prevail when proper degree of
competition does not exist 1 think it is
almost entirely due to this condition, and
is local., because the best savings banks
in New York are paying 31k per cent.
Many savings banks in Pennsylvania pay
4 per cent. Nearly all the savings banks
in Iowa, not so we'll situated as Minnesota
banks, pay per cent. a.. :l.,i:,< =,
+ Tributary to Minneapolis is the finest
agricultural territory In the world, and
its development is hardly begun If you
doubt it, go into the country and notice
the poverty of the farmers buildings and
the scarcity of live stock, deficiencies
which can be cured by a supply of capital
at reasonable interest. The country needs
a large amount of money and people in
Minneapolis possessed Of it are entitled
to fair interest for its use. Considering
that the basis of all our wealth is the
land, it is interesting to inquire what rate
of interest the farmer actually pays The
best farm mortgages pay from 67s to Z
bunch OF ) farm loans that. average less
/ than $40 per acre, covering the best land
| in the northwest which average per
cent. Here is a gross profit of 1873 per
cent on the 3 per cent deposits, which is
certainly a highly respectable margin"
& t1,0,,
New England states and Illinois send
their money to territory surrounding Min
neapolis and receive a Jet return of from
Is to 6h per cent For ten years l have
been returning this rate to corporations
! IN Edinburgh, Scotland, and the invest
ments have been Invariably successful.
their business. They are able to take
a broad view Of the world and do not
tconsfder that all the good securities are
| to be found in one county or one small
portion of a. state - .',.@
! IT am familiar with the arguments used
against higher rates for savings banks.
who are so conservative as to be imprac-
ticable. It is possible to make a financial
| failure Of an institution that will invest
| in government bonds only. Government
bonds are not the only security in the
country that are absolutely safe and are
sufficiently convertible for all practical
purposes. - - --~ r.. -.1t +
"A large amount Of money in we'll con-
Quoted savings banks remains on deposit
\ from years end to years end. and Il a
/ little more Involvement were given the
deposit would remain still more stationary.
| I have become convinced OF this by a
close study of the deposits and with
drawals relating to the 5 per cent certiti-
| Gates of deposit which our small bank
began to issue about year ago. 1t is
gratifying to note that very few such
withdrawals occur, whereas many pass
book accounts are more or less transient
These per cent certificates form most
solid basis for savings institution. They
| coax the small saver into making his saw
tings always an even 500 more. Thee
1 teach him self-denial by the knowledge
I that if he withdraws his deposit Before
the first of the year, he loses his inter
!. lest. I am thoroughly convinced that thi
class Of deposit meets long-felt want
3 and as soon as the people Of Minneapolis
fully understand and realize this new fea
{ ture in savings banks, they will not b.
" slow, to take advantage of it, and will re
Iyise their opinions on the responsibility Q
Ia rate of interest in excess of per cent.