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Show SAVINGS BANK USEFUL i . PROMOTION OF THRIFT BUT ONE OF SYSTEM'S BENEFITS. Institutions Permit Use of Wage Earners' Earn-ers' Surplus as Capital for Country's Coun-try's Activities. The savings bank is an institution for the encouragement ot thrift among the people. In the laws which provide pro-vide for the establishment of these institutions account is taken of two primary facts: (1) That that country is in the best position whose people habitually lay aside a part of their earnings to the end that the possibility possibil-ity of poverty may be minimized and independence in old age may be assured. as-sured. (2) That the surplus earnings ot the people may be gathered into sums available for effective use as capital and so the industrial and other commercial activities of the country may be promoted and expanded. Savings banks, even more than commercial com-mercial banks, are institutions for the gathering and loaning ot capital. The bank could not pay interest on its deposits unless it has also a means of earning the money with which to make such payments. The funds collected col-lected by savings banks, paid in small amounts, are customarily invested in securities of a preferred kind and the possibility of loss is reduced to the lowest minimum possible. An individual indi-vidual could make such investments if he had the means, and individuals, of course, do make such investments. But the purchase of a $1,000 bond is a matter that cannot easily be negotiated ne-gotiated by a wage earner, and the ( savings bank is the Instrumentality through which the small contributions of the people are made easily available availa-ble for the purchase of such securities. secur-ities. Out of the profits from these investments the savings banks pay interest to depositors and the expenses ex-penses of the bank's administration. The laws of the several states guard the deposits of those who make use of savings banks with great care. In many states the kind and character of the securities In which these banks may invest their funds are defined and their purchase is subject to the supervision of the state banking authorities. au-thorities. The books of the banks are examined at frequent intervals and the operations of the bank's managers are narrowly watched. The law also recognizes the fact that the margin of profit to the banks out of these Investments is very small and that it is therefore necessary that they keep all their funds invested in earning assets. Savings banks do not habitually carry large amounts of cash, and it Is for this reason that the law privileges them to exact from their depositors thirty days' or mora notice of an Intention to withdraw deposits. de-posits. However, no well-managed bank ever has recourse to this notice except in times of national distress or peril. No scheme for the gathering of capital or the safeguarding of the surplus sur-plus earnings of the people has been so well devised as that of the savings sav-ings bank. It has stood the test of 100 years of satisfactory operation,' and today the savings banks o the country are more numerous and stronger than ever. No one makes a mistake of selecting a well-managed savings bank as the custodian of his money. |