The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1908-06-02
MUNICIPAL SAVINGS BANKS.

Some account of the municipal saw
ings banks of Germany is given by the
American consul at Hanover, Robert
j. Thompson. in a report to the Wash
ington government, and it should be
of special interest in this country in
view of the agitation for a postal saw
ings system. These banks altogether
have about $4,000 600 accounts, aggre-
eating $3,213, 100000, among a popula-
tion of some 6O,OOO,OOO. They are es-
sentially municipal institutions and
their deposits are guaranteed by the
several municipalities. The consul
evidently thinks we'll of the pubic
guaranty policy, for he says it forms
a bulwark Of confidence in the security
of private wealth and earnings that
cannot be shaken by hard times, pan
jcs or bank failures" Moreover, the
public guaranty does not appear to
plOLhONS lSChlSSS DduhluS Vi lI40hoS SS-
ment, for the consul can find only
one instance of bankruptcy or failure
among these municipal savings insti-
tutions-that being the loOting of a
bank by the director many years ago,
whose defalcation was at once made
good by a special tax levied by the
city where the bank was located. This
makes savings deposits as secure as a
municipal bond.
There are two municipal savings in
situations in the city of Hanover
which has a pupuiation of about 24O,-
600. These two banks have no less
than 1855 individual accounts which
aggregate deposits Of $21, ,719, 400, max
ing the average for each account about
$3.50, and would indicate that the
banks are used more exclusively per-
haps by people of small means than
are the savings banks of Massachu-
sets One Of these banks pays in
terest at the rate of per cent and the
other at 31a; and their hours for re-
Ceiving deposits are from to y and
8 to p. m. 1t seems that these insti-
tutions make a profit even after pay
ing rather high interest rates for a
European country, and after a reserve
fund has been accumulated to the eX-
tent of 10 per cent of deposits, the
profits go to the city which applies
them to the department of charities
and corrections and for beautifying
the city-causing the consul to re-
mark
Thus sense Of municipal pride andI
patriotism is appealed to, and with
the highest form of guaranty of safety
the ayment of Q fair and liberal rate
OF interest, the establishment of num-
erOus branches for receiving deposits,
and the adoption of hours suitable to
the convenience Of working people,
the German savings banks set a fine
example to other countries.
We shall do quite as well here in
letting the savings depositors have all
penses of bank management. But the
public guaranty feature is worthy of
consideration; and especially to be
commended to the attention of Amer
jcan states which have established no
saving system and which are urging
the national government to do for
them through a postal savings system
what they should and can easily do
for themselves, is this German feature
of municipal institutions. If so CEN
tralized a government as Germany
follows successfully policy of close
localization in the matter of prOmot-
ing thrift and prudence among the
people, much more should such a pol
icy be adhered to in so extended a
country as our own under a govern
ment OF divided powers which recog-
nizes the vital Importance of main
tanning a large degree of local self
government.