Douglas daily dispatch., 1928-01-08

Two m1ll1On, nlneCy-IOur CnOuSanQ
three hundred and forty-eight dollars
owned by an army of thrifty people
in Douglas lies in the banks of the
city to their credit as savings accounts
That is within approximately three
quarters OF a million of dollars of the
amount that stands to the credit OF
the business interests and individuals
who carry their bank cash in the
checking account The money which
beolngs to that army of the thrifty
and there are slightly less than $500
in the army here = if apportioned
among the residents of the city would
provide $160 for every man, woman
and child in the city, basing the dis
tribution on population of $4,000
people, one of the late estimates. Here
are the grand totals of checking and
savings accounts in the city's three
banks, according to the officials OF
the banks last week:
Savings accounts ....,...... 2,094, ,34e
Checking accounts .... 1921 ,202
Z If the total of the two items be
made and the amount of cash per
capita, as shown by those accounts be
estimated, it will be found that the
banks hold $4,915,55O of working cap
ital belonging to their customers
which if distributed among all the citi-
zenS of Douglas would give to every
individual the sum of $378 In other
words, the amount of money on deposit
in the banks represents a very healthy
per capita for the people of the city.
Safety in Loan Total
counts represent only a portion of the
banking strength of Douglas. The total
footings for the three banks, which in
cludes their property and the funds
held by them as credit to their GUS
toners, based on their last report on
call to the banking authorities last
October, showed the sum of $5,464,-
$40 $50, thus accounting for $549, ,320 over
and above the funds credited to the
customers. That money also is over
and above the sum required to return
to the people who, have placed their
money in the banks to their personal
account one hundred cents for every
dollar they put there. And that sug-
gests, another bulwark of strength OF
the banks of the city.
"A
money for their shareholders and also
with which to pay the interest that
they allow their customers who leave
their funds in savings accounts, the
banks have loaned to their customers a
total of So 2.569,629 or slightly more than
half of the funds now in their keeping
in both classes of deposits, factor OF
commendable safety to the patrons OF
the banks, it is stated by people IN
position TO Judge such, matters. In
other words, the banks loan account
considered jointly, shows that the total
| of all loans is approximately one-thlro
of million dollars less than the hall
of their joint assets. And in this fac
tor. too. is found another encouraging
thing for the people who have money
| to deposit in banks. 1t leaves the banks
of Douglas in a position OF strengCn
because of the apparent flexlblllCy o.
their assets as it must follow that the
| money not accounted for under the
head of loans rests in some such SAFE
| corner as in government and munlclpa
bonds and similar proper sols:ces ol
use for banking funds. Bonds and such
securities are a better source OF re-
lance for the banks, should there ever
come a time of tight money. than the
| loans to the individual or the business
firm or corporation. When money getS
scarce the first to feel the effects OF
it are the people owing the loans tc
the bank. They depend upon the use
of their borrowed cash to carry or
their business and their hope of paying
/ 14r fro 40 fnfOilQG
proper handling of the goods and mer-
chandise which that money helped &c
procure. On the other hand, the inter
est upon the bonds and securities was
provided for at their issuance anc
usually may be depended upon with
high degree of certainty
Savings Deposits Growth
In the banking world, there has beer
a gradual change coming over the
country and probably few places show
II more markedly than the banks o.
the city of Douglas. Some 20 years
ago. the savings accounts of the banks
Of the United States totalled $3,48O,-
600 600, taking the round numbers tol
1.-THE record. Just 20 years later, or a
i the close of 1926, the total of the saw
1 1NgS SHOWN WdS @S,O0O,oOV'Voo ~
i total number of persons who belonged
to the thrift army which puts ava!
i it's money in savings accounts ina
work while they sleep by bringing then
Interest at the end of the year, haC
grown from 8,027, 1872 to 15,161, ,799. s.
i il appears that while the number en-
rolled as depositors in savings account
had not quite doubled, their effort
!; had resulted in total almost tnre
times the amount saved by the smalle
number.
In the last fact is found one OF tn
problems that confronts the banke
! today. The ratio of his savings de
! post cash is growing too rapidly 10
: his checking account so that his con
, stant need is to seek new and sal
; channels for the employment of th
1,ic oOY1trO1 tn Ioa OnYto a II