IX. SAVINGS BANKS IN THE UNITED STATES.
There are no worthier financial institutions in the country to-day than the savings banks. Most of these are organized on what is known as the mutual plan. They have no capital, no stockholders, and all the assets are held in trust for the benefit of the depositors. They are managed by a board of trustees, who serve without pay. The investments which the banks are permitted to make are generally restricted to high-class securities insuring safety. The savings banks in New York State, especially, are closely restricted in investing their funds, and failures in recent years are almost unknown. A deposit in one of these banks is hardly less safe than an investment in Government bonds. The savings banks are the primary schools of economy and thrift, and I believe that an extension of the mutual savings bank system throughout the country, under proper legal safeguards, would be of the greatest benefit to the people of the United States.
The deposits in banks of this kind are usually limited by law to amounts not exceeding $3000 to one depositor, as they are not intended to be used by the wealthier class of people. The following statistics will be found interesting.
SAVINGS BANKS IN THE UNITED STATES, 1857–1897.
(Statement of condition for each period of ten years.)
| 1857 | 1867 | 1877 | 1887 | 1897 | |
|---|---|---|---|---|---|
| Number of banks | 231 | 371 | 675 | 684 | 980 |
| Number of depositors | 490,428 | 1,188,202 | 2,395,314 | 3,418,013 | 5,201,132 |
| Amount of deposits | $98,512,968 | $337,009,452 | $866,218,306 | $1,235,247,371 | $1,939,376,035 |
| Average to each depositor | 200 | 283 | 361 | 361 | 372 |
In addition to the mutual and stock savings banks in the United States, a system of school savings banks, introduced into the schools of the United States by J. H. Thiry, of Long Island City, N. Y., is worthy of mention. Such banks have been very successful in inculcating habits of thrift and economy among the children of the country.