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The Savings Bank and Other Investments

THE SAVINGS BANK AND OTHER INVESTMENTS.

The forehanded an buys content and distributes it to others.

An officer of a wealthy corporation made the statement recently that of all the money he had invested over a long period of years that left in the savings bank had yielded the best results. He further specified the following reasons: 1. The safety of the savings bank.

2. The remarkable power of compound in terest, if given time to work.

3. The simplicity of making deposits.

4. The possibility of depositing any sum, however small.

As a rule, the savings bank limits any single account. This is generally three thousand dol Lars. When this sum is reached the depositor opens an account in another bank. Hence there is practically no limit to the amount that may be thus deposited.

Not all people who save give the savings bank first place in their plan of operation. The use made of it by another investor il lustrates this.

He earns a fair income, owns his home, and can put aside regularly about sixty dollars per month. For a number of years he has fol lowed this plan : 1. On the tenth of the month, say of Jan uary, to pay all current bills. These include all accounts for the preceding month received on January first; the pro rata amounts for such expenses as taxes and fuel; his personal allowance and the allowance for his wife.

2. He carries in the Atlas Savings Bank an account of two hundred dollars as emergency cash. The purpose of this deposit is to serve as insurance against any unexpected expense. Should a portion of it be so demanded, he regards its use as a loan which he extends to himself and repays it as he would to anyone else.

3. All other savings (which approximate sixty dollars a month) are deposited in the Citizens' Savings Bank. When the deposit amounts to seven hundred dollars he pur chases a bond in the denomination of five hundred dollars, keeping a regular deposit of two hundred dollars in this bank.

4. Both savings bank accounts are in the joint names of himself and his wife.

5. As bond coupons fall due he deposits them as cash in the Citizens' Savings Bank, and they in turn augment the amount that is devoted to bond purchase.

In this particular instance the man is of the well-to-do type. In the fund referred to as "emergency cash," we find a sugges tion that should be followed by the hum blest householder. In the history of every , family, the occasion is sure to arise when money is needed that cannot be spared from current income. Every family that, even by the practice of the severest economy and self denial, can put aside even a few dollars, is in sured against what often seems, and only too frequently is, a financial disaster.

Many a family will run along in its af fairs for a year or two without encountering any but the regular expenses. This run of what is commonly called easy times or good luck is apt to entice people into spending all they have in the mistaken idea that times will always be as easy and luck always as good. But if human affairs are noted for anything it is for their variation. The hint of good times is : Be prepared. Even as little as three, four, or five dollars a month will in two years accumulate into a fund that is worth while; that may be enough or nearly enough to help a family out of an unexpected bad situation.

Five dollars a month may seem little or much, but no one knows the actual force of it until it has been put to work. Sixty dol lars a year, deposited in advance, and earning compound interest at four per cent, will work to a practical end for a depositor. For ex ample : We often look over s series of figures like this and say to ourselves : "I could never save seven hundred and forty-nine dollars and six teen cents ! That is more than I can spare." The obvious answer to this objection is this : You are not called upon to save seven hun dred and forty-nine dollars and sixteen cents. All you have to do is to save regularly, about sixteen cents a day and the seven hundred and forty-nine dollars and sixteen cents will take care of itself. The depositor needs to be reg ular only so far as the small amount is con cerned, then the big amount becomes auto matic.

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