The Virginia enterprise. [volume] (Virginia, St. Louis County, Minn.) 1893-19??, 1902-04-18
SAVINGS BANKS.
Bulvarks that Have Withstool
Financial Crises Bravely.

Bulvarks that Have Withstood
Financial Crises Bravely.
The savings banks in America have
generally weathered the financial storms
in fine shape. says John Gilmer Speed in
Ainslee's. The irst crisis of serious
import was in 1887, the second in 1857.
the third in 1873. and the fourth in 1898.
In the first of these. if the managers
mad been faint-hearted, nearly all of the
savings banks would have failed, as none
OF them was then strong with great re-
serves. Most of them not only boldly
faced the situation, but also paid the
interest which they had not earned, the
money being advanced personally by the
trustees. In the later panics no other
precaution has been necessary than to
enforce the privilege, not ordinarily ex-
ercised. of combining the withdrawal of
deposits to certain times following for
NAL notification of an intention to with
draw.
The rate Of interest possible for a
savings bank to pay is regulated, as has
been before suggested, by the rate paid
by the government on it's securities. This
rose IN the Civil war period and has been
steadily declining. before the Civil war
the rate paid by the savings banks was
rose to per cent. and so stayed for
some time: after the war, when there
was great rise in values, and previous
to the panic Of 1873; not only z per cent,
was paid, but several extra dividends as
well. Since 1873. the decline in the
rate OF interest has fallen until at pres
ent the ruling, rate is 3,A per cent,
per cent. The savings bank scheme,
however, as 1 understand it, is
not to, supply a depository for the
accumulation of funds on which
the deposit0rs shall live, but in case of
continuous thrift to be a place of tenta-
tive deposit pending investments in 9th
er things. If be right, the falling off in
the rate OF interest is not OF the greatest
Importance to the depositors individually,
though to maintain higher rate would
be Of consequence individually and COL
lectively, for to do so would involve ILL
security of investment.
II have spoken before Of the strength
Of the savings banks of the country i'll
the aggregate. There is no way to get
at the exact facts, as these banks re-
port to the comptroller of the currency
pulslon., But the report of that officer is
reasonably accurate. and the last avail
able report is for the fiscal year ending
June 80, 1901. At that time there were
1902 mutual savings banks, 81 CONNER
clal banks with savings departments
ana 3zO STOCK savings banks. The de-
positors numbered G,373,09S, the average
deposit was $408.30, while the aggre-
gate deposits amounted to $2,6O1, 1885,
POI. What an immense sum this is!
All the money in circulation in the Unit
ed States would not pay it off. Nor
could half of it be invested in the in
terest-bearing securities of the United
States if all of them were available for
that use. And it is probably very well
that the savings banks are obliged to
seek other investments. as they exert
in the security market an excellent con-
sentative influence.
II have prepared a table showing the
amounts of several of these aggregations
of value in the aggregate and per capita:
Population Of United States
Census 1900 .............. 76,3OOO00
Money in circulation. ....... $1,999, $4,000
DEBT Of United States: 1,2,so4s:s1i
Per capita debt. ........... $3.50
Total value of property in
United States :.......,... 100, 0o0, 0oo, 600