The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1923-01-18
OF SAVINGS
INSTITUTION
Judge Lawrence at the
Woman's Club
Pleasant Meeting Held Yesterday Al
tcrnOOn In Library Parl0rs.
Music Featuras

A pleasant meeting of the Skowhe-
gan Woman's Club was held yester-
day afternoon in the parlors of the
Public Library with Mrs. Evelyn w.
Pratt, the club president, presiding.
The speaker of the afternoon was
Judge Fred +. Lawrence, bank exam
iner, and his subject. very ably hand
/, led, was THE Service of the Savings
institution Music features includ-
ed songs by Miss Evelyn M. st. Led
ger, accompanied by Mrs. Dora T. Nye
and piano solo LES Muscadines"
(Paul Wachs) played by Miss Louise
Stlnchfeltl. The hostesses were
Mrs. Ada X. Dascombe and Mrs. Mar
tha Griffin.
Judge Lawrence said in part
The mystery which i'm the average
mind surrounds the operations of the
bank is unfortunate, the more so be-
cause except with reference to details
of individual transactions 1t Is un
necessary. IT is especially desirable
that IN the field of savings banking,
where ignorance is the soil in which
the Wallingfords ply their trade, a
more widespread effort should be
made to enllghten the public and
connteract the growing impression
that every owner of a savings account
Or possessor of few hundred or even
a few thousand dollars Is a potential
investor. This impression is being
subtly fostered by those who realize
the value of an appeal to three con
spicuous human weaknesses. % the
acuuisitive instinct: ca the belief of
otherwise humble individuals in the
superiority of their own judgment; ;
by the insinuation that some imagin-
airy money power" is protting by the
use of their savings.
The specialized function of the saw
iugs institutio Including both the
mutual savings bank and the savings
departments Of commercial institu-
tons is To. accumulate and invest
the savings of a community, with the
highest nossible profit to the indiyid-
ua saver and the community. Moth
ing is more easily demonstrated to
him who takes the trouble to learn
than the fact that service so rendered
is ncomparably superior to any sim
liar service which he can render him
self In the nature of things 1t can
not he otherwise, for two very funda-
mental reasons too often ignored.
The first of these factors is diversi-
fication. This is an inescapable con-
dition of every sound investment pol
icy, aud one with which the ordin-
airy Individual cannot comply, for OBJ
vious reasons. The necessity for di-
yersificatiop arises from the fact that
prophetic vision was not an attribute
with which the Creator endowed his
creatures. There Is no ideal invest
ment, much less an ideal speculation.
There are styles in. investments as
we'll as investiture, and prophecy Is
as difficult In the one as the other.
The soundest judgment and the ripest
experience cannot overcome a failure
to recognize this fact. Distribution
of risk is imperative. but requires a
considerably larger fund than that
possessed by the average individual
The second fundamental reason is
that investment, particularly under
modern conditions. is an art and
science requiring constant observa-
tion and study of infinite detail. 1t
cannot be pursued as a hobby or avo-
cation The occasional temporary
exception no more refutes the prin-
ciple than does the exploit of one who
breaks the bank at Monte Carlo
constitute an argument in favor of
gambling as q practice. The study
of the complex conditions under
which modern investments are made
is the life work of the Investment or
savings banker to the successful ac-
complisbment of which he is spurred
yby the keen edge OF competition, the
disastrous consequence of failure. and
the whip of governmental and state
supervision. 1t Is a necessary conse-
uuence that the institutions which to-
day accept from individuals deposits
ranging from one to five thousand
dollars, allow four per cent interest
compounded semi-annually, and under
All ordinary circumstances permit
withdrawals Of any amount at any
time without loss OF interest to the
date of the last dividend, are rem
idering service which has no paral-
tel.