The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-05-20
lmes o. Ma
To the People of Washington
From The Washington Times of May is

rate OF interest and the paid interest on the low
est days balance of the month and the other paid
interest the average daily balance of the month";
and if everything else were equal with these two
banks-capital, management, opportunities, and ex-
penses-t is clear that the bank figuring on the low
>. est days balance of the month would put the
other bank of business because of the lower rate
it would pay to depositors.
With the one systematic daily balance system
two per cent two per cent full measure 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 balances
might mean one per cent or more all the way up to
full two per cent. Or it might mean more than
a quarter of one per cent, or even less. The same
thing would hold true in proportionate measure if
the rate three four per cent
Without actually knowing-and there is way
can know definitely will venture the guess that
here in Washington the forty fifty thousand or
more checking accounts basis of two per cent
interest on balances actually getting, whole,
less than one per interest. And this would be
due wholly to what seems to me to be false theory
of doing busness-an DID, very, very old theory that
has come down from the past and remained too long,
1t in sense reflects the integrity of the bankers
OF the city. The thing is done in many other
cities. 1t is inheritance and habit, but ii is
ertheless, bad because is misleading Its only usti
fcation is that it is and has been, but ises because
they have been not good enough for today.
What | wanted especially to talk with you about
is our savings plan Without question it is
the fareSt and squares and most generous and most
elastic plan savings that has been
put out in any country-anywhere under Gods blue
sky.
Other houses, many of them, pay four per cent,
as do, but they tie up the poor savings depositor
with so 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
anv day quite the the big man, and he
should be able to get it and get interest on it so
long as the bank has had it. To frame rules that
rob man OF weeks and months of nterest-well-
nigh six months, and under certain conditions
more-when necessity presses him, is monstrous.
This. too is a come-down from the past and it has
STAYED long.
The Munsey Trust Company will not be party
to any such antiquated, cast-iron methods 1t will
give to the small savings depositor every advantage
it gives to the biggest deposition 1t will hedge itself
about with rules that take away from him days
interest say nothing OF months OF interest. Money
deposited in The Munsey Trust Company will draw
interest every day it deposit, the day OF
deposit. Every business day in the year is deposit
day, and every business day of the year is one
which money may be drawn and without the penalty
of losing days interest. And interest will be
pounded quarterly-four times year.
1t is to be assumed that money placed in
ings account 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 deposit less than six months. We Tx upon SIN
months the shortest time on which we can allow
four per cent but provide way for a man to get
his money in less time, to get whenever he wants
it. and with interest on smaller interest basis, three
per cent. H.
Man hates compulsion-hates any plan that COM
pels him to tie himself up hard and fast to any given
scheme for six months. Man wants freedom in bank
ing as in other things-wants freedom and security.
Depositors 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 institutional in
character Rock of Gibraltar in strength. All this
presupposes further increase in capital-many in
creases, hope.