The Jennings daily record. [volume] (Jennings, La.) 1900-1903, 1902-05-30
ABANK FOR EACH HOUSE
NEW PLAN FOR UTILIZING SMALL
SAVINGS OF THE PUBLIC,

ACCOuhVe StoTuou uu SS'oV NC
posit-Gain of 5000 New Depositors
I'm = Month.
1t is a matter of record that in NO
country in the world are the pubiic's
cash savings and available capital so
consistently utilized for the service of
the money market as in America. 1t
needed the currency boarding panic of
1893 to show the American public what
q revolutionary change would be
brought upon our financial system by
a return of the plan of keeping cash
savings in old stockings and in chin
ney pieces-a practice still prevalent
in many quarters of the European Con-
tinenf. The almost universal use of
checks begins the saving in the circu-
iating medium, and highly developed
clearing house system saves. in the pro-
portion CT 100 to 4, the necessity Tor
cash transfer in settlement of bank
balances.
Where the check is little used or not
at all. the savings bauk steps in. and by
its offer of three and onehalf to four
per cent. for use of a wage-earDer'S
surplus petty cash. diverts the circu-
lating medium, to the extent of s.. 5OO,-
5000. from the pockets OF the citi-
zen to the great money markets. There
still remained. however. q sum enor-
nous in the aggregate, though divided
into Insignificant portions, which failed
to reach even the Gime-savings insti-
tutionS, because its owners Were IN
willing or too careless to undertake
frequent trips to the bank to deposit
it. If they Kept it by them, it was
likely to be spent. The securing OF this
fund for productive uses has long been
an object of study with bank managers.
and the interesting problem is now in
fair way to being solved
Family banks" so-called, have late
~ been introduced by several of the
large city savings banks The theory
is that by sufficiently ingenious ar
engagements, petty savings which would
otherwise escape the money market
may be obtained by visits of agents
of the bank at the house of the de-
positor. 1t was estimated for the Even
ing Post, this week, that from 5000 to
5000 new depositors had been added in
that way in few months. Its pro
iectors stated their belief that the plan
represents the best means yet devised
FOR encouraging thrift among wage
earners. The scheme is very simple.
and consists simply in giving out minia-
ture safes On payment OF $3.50 by q
new depositor. This represents the
value of the safe. and is credited mme
diately TO the person opening the 3c-
count.
The safes are distributed by means
nj N
books issued at the time thar the initial
deposit is made. Then q collector who
holds the key calls once q month and
opens the safe, entering the value OF it's
contents on the pass-book of the de-
positor. The collections range all the
way from fifty cents to 500. and rep
resent perhaps the savings of two or
three members of a family. The chief
advantage of the scheme lies in the
fact that it permits the deposit of the
smallest amounts. the safes being CON
structed in such a way as TO prevent
the withdrawal of funds once depoS-
tied. Banks that have adopted the
plan say that depositors thus secured
remain on their books for years. and
prove profitable customers. Since STA
tiSticS show that it costs savings banks
on the average 81 for every new Gus
toner secured, the new plan is eco
nomical, Notwithstanding the original
outlay of $1,000 or $4,000 for safes.
Such II system of auxiliary banks is
rapidly gaining favor with trust COM
panies ar the West. 4 person familiar
with their use said: These little banks
are accomplishing great things Their
success is based on the theory that 4
penny saved is penny made. aud the
way they are growing in favor in
Gicates that they arc filling lopg-felt
want. ! believe that the idea is thor
oughly legitimate, and adds to the use
fulness of savings institution by pro
viding for the accum ulation Of chance
funds. That is what we most need
for the average person never realizes
that laying aside ten cents day ct
four per cent. interest amounts to
S171 la five years. That is computed
on the basis of 313 working days.
'"Then, too the schemA is available
for all members of family. and en-
courages young people to save during
the formative years when the habit of
thrift, once formed, remains generally
through life. If people wait to accu.
mulate SIS or $40 before making q saw
ings bank deposit, there is danger that
the sum will be FILTERED away. But
If the chance coins are put away in a
strong box from which they cannot
be extracted the same temptation to
spend does not exist"-New York Post.
How Birds Migrate.