The Washington times., 1911-09-10
IN LOCAL FINANCIAL CIRCLES
By I. A. FLEMING.

The Postal Savings Bank system is
doing, IL one may Judge from the con
] ditions since the system was put into
effect, Just what the lawmakers thought
It would do. that is, bringing funds Out
OF their hiding places, from stockings
and from pots in the earth.
OF course, 1t is too early to Judge the
full effect Of the system. when It shall
have been given years Of trial. Nat
urally 1t will take some money from
the banks. but the fraternity is moi
looking for any serious inroads on It's
cash.
That It has been n distinct help to the
market for Government bonds goes
without saying, as banks in all sections
of the country have complied with the
requirements Of the law for obtaining
| their proportion Of the savings deposits
by sending to the trustee their quota
Of bonds, and, for good reason, Govern.
| 100 per cent Of face value Is allowed
on Hawaiian issues 80 per cent, and or
municipal issues Is per cent.
1t Is specified in the law that only
| Government and public bonds backed
by the taxing power, shall be accepted
as security for deposits.
Washington banks with their usual
willingness to do gratuitous work
have acted as representatives of the
thousands Of banks over the country.
and have been kept busy sending mes
sengers back and forth TO the Trustee
Of the Savings Deposits. Some of the
banks have made little something on
from these transactions by furnishing
the necessary bonds, but the returns
are nothing compared with the service
The Postal Savings system win make
| some bankers pay interest on money
that they have had the use Of, free,
for years. But this matter Of paying
interest has come to be quite COM
general. also in the East, and as there
are many banks that pay larger inter-
est than the postal rate. the chances
are that they win not lose heavily.
Proflts to bankers in paying the Gov
ernment 2k interest on Postal Sav.
the request of the writer, the National
City Bank Of New York submits the
following statement showing profits per
annum to be derived from Postal Saw
ings deposits as follows:
Pct.
City Of cebu As Phiiippine). NJ .3s or o.eos
Hawaiian 4hls, 1915; @ ;:.;..-..... 100 or d,22o
seT Porto fSIa RIaae city a. GO or or
The estimates are based on an in
vestment In the bonds named OF 5000.
The Clearing House Association did
ers' ssociation-together they ought
70 be able to accomplish much and
eradicate many evils in local banking
conditions.
Advrtising is wise investment for
the banker, just as well as for the re-
taller. General publicity is well enough,
but something striking helps. The catch
line or slogan, call 1t what you may,
when persistenely reiterated, becomes
as well known as the bank that uses it.
A feature Of the recent bank state
ment in response to the cali of the
Comptroller of the Currency Is the fact
that savings banks have gained steadily
in deposits at time when other fiscal
institutions we're losing heavily.
Naturally, the savings banks lost none
of their millions on account of the with
drawal Of tax money by the Govern
ment But the other banks lost over
81, 500, 900 over the aggregate of the Gov
ernment funds withdrawn.
Much Of the success Of the savings in
stitutions has been due to persistent
advertising. Many OF the other banks
and trust companies are also doing
splendid publicity work.
Here's corking good catch line put
out by the National Savings and Trust
Company:
lone in Every Twelve of the Popula-
ton Of Washington Does Business With
U.s."
The Merchants and Mechanics Bank
uses many slogans. How effective is
Cupids advice to the lover:
Go On, Show Her Your Dank Book"
And another urges the object of d.
rect attentions to
Make Him Show You His Bank
Book!'
The Home Savings, a liberal adyer-
tiser. always gives seasonable advice:
Don't Go On a Vacation If You
Can't Spare the Money!"
Or
Glow Much Cash WIN You Have In