Freeland tribune. (Freeland, Pa.) 1888-1921, 1902-06-27
A BANK FOR EACH HOUSE
NEW PLAN FOR UTILIZING SMALL
SAVINGS OF THE PUBLIC.

| a Peripatetic Receiving Teller-"Houso
| Accounts" Started $3.50 De-
posit-Gain of 5000 New Depositors
| in Month.
1t is a matter of record that in no
country in the world are the public's
cash savings and available capital 50
consistently utilized for the service of
the money market as n America. 1t
reeded the currency-hoarding panic of
1893 to show the American public what
q revolutionary change would be
brought upon our financial system by
return Of the plan Of keeping cash
savings in old stockings and il Chin
ney pieces-a practice still prevalent
in many quarters of the European Con
tirent. The almost universal use of
checks begins the saving in the circu-
| lating medium, and a highly developed
| clearinghouse system saves, in the pro,
portion of 100 to 4, the necessity for
| cash transfer in settlelen. CT bank
| balances.
Where the check is little Used CT Eot
| at ALL the savings hank steps in, aud by
| its offer Of three and one-half to four
per cent. for use of wage-earnec's
surplus petty cash, diverts the circu'
lating medium, to the extent Of $780,.
| C00,0O0, from the pockets Of the citi.
zen to the great money markets. There
still remained, however, G sun enor-
nous in the aggregate, though divided
into insignificant portions, which failed
to reach even the dinc-savings insti-
tutions, because its owners were I'M
willing OF too careless to undertake
frequent trips to the bank to deposit
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
u been introduced by several of the
large city savings banks. The theory
is that by sufficiently ingenious az
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-
| pcsitor. 1t was estimated for the Even
ing Post, this week, that from 5000 to
0CO0 new depositors had been added in
that way in q few months. Its pro-
jectors 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 Einia-
tCre safes on payment of $3.50 by
new depositor. This represents the
value CT the safe, and is credited irlme.
L.ately to the person opening the aC.
count.
The safes ere distributed by means
of houseto toulouse canvass, and pass
books issued at the time that the initial
deposit is made. Then collector who
holds the key calls once Q month and
opens the safe, entering the value of its
contents on the pass-book Of the de-
| positor. The collections range all the
way from fifty cents to $780, and rep
resent perhaps the savings Of two or
three members Of q family. The chief
advantage Of the scheme lies in the
fact that it permits tie deposit of the
smallest amounts, the safes being con-
structed in such way as to prevent
the withdrawal of funds once depos-
| tied. Banks that have adopted the
plan say that depcsitors thus secured
remain on their books fer years, and
prove profitable customers. Since sta.
tistics show that it costs savings banks
on the average So for every new Gus
toner secured, tie new plan is eco
rorlical, Notwithstanding the original
outlay Of $1,000 or $1,000 for safes.
Such system CT auxiliary banks is
rapidly gaining favor with trust corr
panies at the West. A person familiar
with their use said: "These little banl;s
arc accomplishing great things. Thei'
success is based on the theory that q
| penny saved is penny made, and tie
way they arc growing in favor in
dicates that they arc filing q long-fclt
want. 1 believe that the iGea is thcr-
oughly legitimate, ard adds to the use-
fulress of savings institution by pro-
viding for the accumulation OF chance
| funds. That is what we most need
for the average person never realizes
that laying aside ten cents day at
four per cent. interest amounts to
| Sill in five years. That is computed
on the basis of $40 working days.
'"Then, too, the scheme is available
for all members of q family, and en-
corrages young people to save during
tie formative years when the habit of
thrift, once formed, remains generally
through lie. If people wait to accu-
mulate S5 or SO before making 4 saw.
ings bank deposit, there is danger that
the sum will be frittercd away. Eut
if the chance coins arc put away in 4
strong box from which they cannct
he extracted the same temptation to
spend does net texist."-Ncw York Pest.