The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1920-05-25
BIG CITY BANKS
KEEN ON PARTIAL
PAYMENT SCHEME
q IN ST. LOUIS AND 4 IN LOUIS
WILLIE ARE OPENING MANY
NEW ACCOUNTS.
BIG INDUSTRIES FAVOR 1T
Saves the Banks Big Expense In Elk,
tending Their Business and De.
posltors Are Also Gamers.

Banks In the larger cities through.
out the Eighth Federal Reserve Dis.
trict are rapidly awakening to the
unusual opportunities afforded them
to obtain new accounts and extend
their business through the new plan
of selling Treasury Savings Certif.
Gates on installments.
Here is a plan that permits ad.
vantages to accrue to the purchaser of
the certificates and also to the bank
that handles them. Ordinarily 1t costs
a bank no incOnsiderable sum TO get
a new savings account started. And
the cost incurred does not benefit the
new deposltor, for the money expend.
ed goes to solicitors, advertising and
other necessary expense.
But with the governments new
installment plan it Is different. The
marchinery of the Treasury Depart
ment reaches out and gets new bust
ness. Those who have been non-savers
are taught the advantage of saving and
investing in the worlds best securities
United States Liberty Bonds, Treas
ury Savings Certificates and Savings
Stamps.
in many instances the saver cannot
acquire 500 Treasury Savings Ger
tifcate and make full payment. That
is where the installment plan makes
its big appeal. The plan does away
with the irksome, to some, work of
buying Thrift Stamps, FASTING them in
books, and then exchanging them for
Savings Stamps and finally exchang-
ing them for Treasury Savings Certif-
Gates.
The purchaser makes a small pay
ment down, and this initial payment
is deposited in the bank In which he
wishes to open his account. 1t Is to all
intents and purposes merely new
savings account. 1t draws interest
just the same as any other of the
banks savings accounts. The pur-
chaser makes his deposits in the bank
and when he gets enough deposited to
pay for the Certificate, making the
price of the Certificate the amount
fixed by government regulation, the
certificate is turned over to the de-
pOsltor and the bank then credits the
customer with one dollar, so that even
when his account is practically wiped
out by the payment Of his Certificate
he is started on a new savings ac-
count with the dollar furnished by the
bank.
The bank loses nothing, because ii
has the new account, and has been
at absolutely no expense In getting
1t. The depositor has saved the money
that would otherwise have been spent
for things not necessary, and in addi-
ton he gets the dollar from the bank
added to his interest
In st. Louis there are 81 banks that
have taken kindly to the instalment
plan, and they are opening daily scores
Of new savings accounts. In Louis
Vile, KY, there are four banks that
are profiting by the plan, and are eX-
tending their business rapidly.
These small accounts, while they do
not profit the banker IL they remain
small, often attract other business,
and more than pay for themselves in
the long run.
In Louisville there was one case
where a pupil in one of the public
schools opened an account to buy on
the installment plan a Savings Ger
tlficate. The pupil became so inter
ested In his plan, and talked TO his
father so much about it, that the
father went to the bank and opened IA,
similar~.account, depositlng $1,000, his
limit, In Treasury Savings Certificates
for one series, ~and getting "A $1,000
Liberty Bond, purchased at the pre-
vailing price, which is below par.
The heads of the big industrial
plants all over the country are en-
thusiastlc over the new installment
plan. They encourage their employees
TO open their accounts at the banks,
acquire the Certificates, and get a suf-
ficient sum ahead with which to begin
payments on home.
The men at the heads of the big in
dustries know that II their employees
are savers, and that If they are buying
their own homes, they take a better
interest in their work, and they are
not so ready to quit their Jobs as when
they live in the hand-to-mOuth fash
ion that characterlzes so many per-
sons.