New-York tribune., 1920-12-19


showing an increase in savings of 2.8
per cent in the three months beginning
September l, as against gain of IA
per cent in the preceding eight months
Of the year, indicate lnther conclusive-
ly that thrift is now being more widely
emphasized.
Moreover, the hundreds of thousands
of unemployed who now find themselves
without income and without savings
for "the rainy day" will be the first 20
put aside a part of their pay when
they go back to work, in the opinion
of II. F. Rawll, organizer of the Christ
mas Club, which has for eleven years
pushed the idea of putting aside a
small amount in the bank each week
and drawing out the total for fifty
weeks just before Christmas A larger
number of banks than ever before will
undertake the plan next year, and 5
great increase in the number of par
ticiPants is foregone conclusion.
Idea Has Rapid Growth
The growth of the Christmas Club
idea has been rapid and steady, except
in 1917 and 1913, when the United
States government was selling Liberty
bonds Buyers of government bonds on
the installment plan were numbered in
Christmas Clubs plan for installment
purchases was responsible for the sale
Of $500 100000 worth of bonds.
The eclipse of the Christmas Club
IDEA Of Liberty bonds in the war was
not due so much to the desire to buy
government securities as to the fact
that banks did not have sufficient space
or clerical" forces to handle both de
partments and naturally gave prefer
eHce to the government task, according
to Mr.. Rawll. His organization was in
strumental IN making the installment
plan in the loan drives a success by in
teresting prominent financial institu-
tlons in underwriting large amounts so
that small banks were able to accom-
modate larger number of purchasers
than they otherwise would have been
able to do if they had had to under
write the whole amount of the bonds
they sold themselves. The cooperative
plan adopted for the Fourth Loan and
improved upon for the Victory Loan
was the result of an evolution of the
Christmas Club idea.
But the Christmas Club again be-
came popular when Liberty bond pur-
chases were no longer necessity, and
this year, despite what has been called
the debauch OF spending in the first
few months, 100000 persons made
deposits in banks to be withdrawn for
Christmas, end now they have S127,-
100000 for Yuletide happiness, or to
start savings accounts.
New Savings Accounts Started
1t would net be surprising to bankers
and the Christmas Club organization to
see a great many new savings accounts
opened this year This feature has
been stressed in recent years, and par
Icj to n hn .;cf,
have come to realize how easy it is to
save when once a start is made are put
ting their money back in the bank in
increasing numbers so that their funds
are now drawing interest
10 emphasize the advantages Of regu-
lar savings accounts, no interest is paid
Oh Christmas Club deposits. Moreover,
banks would not feel justified in paying
interest on such deposits, for the rea-
son that ordinary overhead expenses
amount to almost as much as the in
tcrest on the deposits. For instance,
total deposits Of $lh0,000 would average
only $4,000 for half a year, the in
tcrest on which would be $2,25O C per
cent forSsiX months). Cost of clerical
hire and overhead would amount to
nearly this sum.
Figures recently compiled show that
new savings accounts in banks adopt
ing the Christmas Club have increases
from per cent to 80 per cent in eight
years, and increasingly large amounts
of savings are going back into old ac-
counts, as checks are sent out each De-
cember, according to figures compiled
by the banks.
Inducements for Savings
Various schemes have been tried to
inculcate thrift by urging savings ac-
Ct nccfs 81 tohI
has been to present passbook to
Christmas Club members with an in
itial deposit of 81 made by the bank on
condition that the depositor keep at
least $25 in the account for year.
Once an account is started in this way |
it has been found it is almost invari-
ably continued and the sums on deposit |
gain rapidly.
The first Christmas club was formed
twelve years ago in Harrisburg. Pa. |
1t was then worked on small scale by
one business house, which collected
m nimum weekly sum and returned it |
in lump at the Christmas season.
The success of the plan on a small
basis led others TO undertake. it on
larger scale.
Plan Grows in Favor
ut is really wonderful thing how
PcoPle nave TAKEN hOIu OF tne christmas
Club ideA." said Mr.. Rawil. "Some |
years ago it was called peanut bus- |
ness by the banks and the people
would not take an interest in it,"
Rawil WAS one of the pioneers in the
held. He was an accountant in q busi-
ncas house at Harrisburg when he
earned Of the plan carried on by the
nouse for Christmas savings. He then
and there began investigating its pos
abilities on national scale.
IAN my business is done OH con-
'ract hasis with the banks" said Mr..
Rawil For seven years they guaran-
tee to pay me per cent Of the interest
On the money deposited IL in turn l
will advertise the scheme in their town
Or community and will furnish them
with the needed supplies in the bust