Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-05-19

the lowest DAVIS balance of the month"; and the
other paid interest on the average daily balance
of the month, and if everything else were equal
with these two banks-capital, management, OPP
portunties, and expenses-it is clear that the
bank figuring the lowest days balance of the
month would soon put the other bank out Of bust
ness, because of the lower rate it would pay to
depositors.
With the one systematic daily balance svs-
tem-tWO per cent means two per cent full meas
the actual amount Of money in the bank
for the month. And, likewise three per cent
means three per cent, and four per cent four per
cent
With the other system. two per cent on bal
ances might mean one per cent or more all the way
up to a full two per cent. Or it might mean
more than quarter OF one per cent, even less.
The same thing would hold true in proportionate
measure IT the rate were three or four per cent
Without actually knowing there is no
way | can know definitely will venture the
guess that here in Washington the forty or fifty
thousand or checking accounts basis of
two per cent interest on balances actually get
ting whole less than per cent interest.
And this would be due wholly to what seems to me
to be false theory Of doing business-an DID, very,
very old theory that has come down from the past
and remained too long. 1t in reflects
the integrity of the bankers of the city. The
thing is done in many other cities. 1t is in
heritance and habit, but it is nevertheless bad,
because it is misleading It's only justification is
that it is and has been, but Uses because they have
been are not good enough for today
What | wanted especially to talk with YOU
about is our savings account plan Without ques-
ton, it is the farest and squarest and most gen
erous and most elastic plan for savings accounts
that has ever been put out In any country-any-
where under Gods blue sky.
Other houses, many Of them, pay four per
cent, we do, but they tie up the poor savings.
depositor with many conditions that he has
nothing of the freedom of the big man in handling
his money.
The small man may have use for his money
any day quite the the big man, and he
should be able to get it and get interest on it
long as the bank has had it. To frame rules that
rob man of weeks and months OF interest-well
nigh six months, and under certain conditions
even more-when necessity presses him, is mon
strous. This too, is a come down from the past,
and it has stayed too long. -
The NIunsey Trust Company will not be a
party to any such antiquated, cast-lron methods.
It will give to the small savings depositor every
advantage it gives to the biggest depositor. 1t
will hedge itself about with rules that take
away from him days interest, to say nothing
of months of interest. Money deposited in The
Munsey Trust Company will draw interest every
day it is deposit, save the day Of deposit. Every
business day in the year is deposit day. and every
business day of the year is one on which money
may be drawn, and without the penalty of losing
a days interest. And interest will be compounded
quarterly-four times year
It is to be assumed that money placed in
savings account is SO placed with the intention
Of its remaining for time, but it is possible
conditions may SO change that the depositor must
have his money. By our plan he can get it at any
time and with interest, the only difference being
his interest would be figured at three per cent
instead of four if on deposit less than six months
We fix upon six months as the shortest time on
which we can allow four per cent, but provide
way for man to get his money in a less time, to
get it whenever he wants it, and with interest on
a smaller interest basis, three per cent.
Man hates compulson-hates any plan that
compels him to tie himself up hard and fast to
any given scheme for six months. Man wants
freedom in banking in other things wants
freedom and security. Depostors get both of
these at The Munsey Trust Company.
One word more. My aim is to build The Mum
sey Trust Company into great banking house
here in the National Capitalize make it institu-
tional in character-a Rock of Gibraltar in
strength All this presupposes further increase
in captal-many increases hope.