Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-12-17
ATLANTA BANKS CUT
SAVINGS DEPOSIT RATE

Because of the large amount of ready
money that is in the hands of the people
of this section, and that is being deposited
i'm the banking institutions of this city
I'm the form of savings accounts, five of
the banking houses of Atlanta have
agreed to cut the rate on savings depos-
It's from 4 to 1-2 per cent per an
mum.
All five of the banks that have en-
tered into the agreement to lower the
interest rate paid to the people for cash
deposits are members of the Atlanta
Clearing House association. The one re-
naming bank in this organization, the
Central Bank and Trust corporation, has
decided to maintain its former rate of
4 per cent.
1t is significant to note that two of
the leading savings banks of the south,
the Georgia Savings bank and the Union
Savings bank, have not altered their rate
on deposits, and will continue to pay 4
per cent.
Interest on savings accounts has been
paid semi-annually, per cent on July
]. and 2 per cent on January J. and the
notice issued by the five banks entering
into the cut states that the new rate o.
1-2 per cent will be paid in the same
manner, / "a per cent on July !, and
"a January 1. the interest dating from
January 1, 1910. The notice signed by the
five banks is as follows:
THE AGREEMENT.
Atlanta, Ga, December l, 1909.-We. the
undersigned banks, hereby notify the de-
positors in our savings departments that
after January 1, 1910, interest on all saw
ings deposits will be paid at the rate of
g 1-2 per cent per annum. Interest paya-
BILE July l and January / of each year.
Atlanta National bank, by C.. K. Cur
rier, president; Lowry National bank, by
Robert j. Lowry, president; Fourth Ma
tional bank. by j. w. English. president,
American National bank, by w. L. Peel
president; Third National bank, by Frank
Hawkins president.
This action on the part of the banks
mentioned is not to be viewed with alarm
by any one as it is, in reality, the high
est testimonial to the prosperous oondi-
ton of the community and the state
/ A prosperous season, excellent weather,
and sky-high cotton have combined to
put more money into the hands of the
public in the form of ready cash than
has been there for many year
The people of Atlanta have confidence
in their financial institutions, and the
banks have been literally flooded with
cash deposits. All the banks that have
entered into the agreement, while not saw
ings banks. maintain savings depart
ments operated in connection with their
business, and just now they find them
selves in the position. singular enough.
of possessing all the ready cash they can
use.
MONEY is EASY.
Not only is this true of the Immediate
present, but indications for the future
are that money will continue to be
"easy"-that is that it will not be hard
for the banks to put their hands upon
cash as desired without paying heavy
rates of interest for it. Hence the cut.
Savings banks in the proper sense,
maintained and operated for this class of
financial business alone, and banking in
stitutions which make feature of their
savings account departments, will not, In
the nature of things, change their interest
rates.
The Central Bank and Trust
corporation, the Georgia Savings
Bank and Trust company and the
Union Savings bank and other financial
concerns that make a speciality of saw
ings accounts will maintain the per
cent rate on all deposits. payable semi
annually in per cent dividends.
At present there is approximately $2S,-
000, 900 on deposit in the Atlanta banks, OF
which at least one-fouAh is drawing per
cent per annum. A glance will show that
$4,000 is paid out in interest on savings
accounts every year-$56,0O0 at a time-is
quite a sum in cash. and this naturally
increases in direct ratio to the interest
rate. It is understood that all other banks
| in the city, except the five members OF
! the Clearing House association which
have entered into the agreement to cut,
will maintain the old rate of per cent.