The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1912-09-14
WHERE a MANS MONEY IS SAFE


Copyright, i912. By O. ~ keyx)
In the State of New York more than
$500, 900 people have deposited in the saw
ings banks more than s1,5000o0.o0o. In
Pennsylvania there are less than 10000
savings banks depositors and their aggre-
gate deposits are about slso.o0o.ooo The
average deposits In New York are more
than $50 for each depositor. while in
Pennsylvania they are less than $500
This contrast has oft been cited and
various conclusions are drawn from 1t.
The most common conclusion, which r.
correct for the most part, is that on ac-
count Of Its very stringent savings banks
laws and the strong enforcement Of these
laws, the State Of New York has given
to its people a very great confidence and
faith in the savings banks; whereas. In
Pennsylvania the laws are not SO strict
and the savings banks are not quite SO
universally trusted and looked to as the
only source Of safety in putting away
money in small amounts.
The contrast Is cited here for another
reason. The writer has a statement for
1911-19l2 showing statistics for local build
ing and loan associations. In New York
12s.5o0 people have about s50.0O0.tD0 In
building and loan associations of the local
class. In Pennsylvania, 443. coo have near
ly 500. 100000 in such institutions. In
other words, in New York for every man
who deposits money In a local building
and loan association there are twenty-one
who put 1t in the savings banks: while
in Pennsylvania there are about as many
depositors In one sort of institution as in
the other.
There are three rich States. Pennsyi-
vania. Ohio. and New Jersey, in which
the local building and loan association
has at least as much of the public con-
fidence as the savings bank. In Ohio the
deposits in the building and loan associa-
tons are more than double the deposits
In the savings banks, properly speaking.
There are a good many sensible people
who feel that in New York this splendid
idea Of cooperative savings has not had
its proper growth. Mr.. Van Tuyl super
intendent Of banks in New York. seems
to be one OF them. In his report this
year he says:
Il believe that they are just beginning
to occupy the field for public usefulness
that is open for them. and that the future
presents great possibilities for the devel-
opment and extension of this system of
cooperative finance. Such associations.
II properly organized and conducted along
conservative lines, could be advantage
ously formed in every considerable vii
lage in the State which is too small TO
support savings bank. and in larger
places have a special and distinct field
which Is all their own"
In the same report, however. Mr. Van
Tuyl touches upon one Of the causes that
has prevented the growth OF this kind OF
institution in New York. In years gone
by there was a great number of so-called
national building and loan associations.
While the local associations have their
members in one locality and do all their
business at home on a cooperative basis.
the national association had Its member
ship scattered and did business in a big
wide sweeping way. some times all over
the country. These national associations
did not as a class turn out well: only q
few Of them survive. and while most of
these now conform to sensible practices II