Depositors in savings banks represent about twentynine in every hundred persons, and in 1906 the sum deposited amounted to £37,205,000 in the names of 1,152,000 persons.
There was distrust in the minds of the depositors, especially those whose holdings were small, and most of the banks were, at a very early period, subjected to the strain of repaying a large proportion of their deposits as they fell due.
In March 1907 there were 8159 depositors in the government savings bank, with £569,731 to their credit.
At the same date more than £ 10,000,000 stood to the credit of small depositors in post office and private savings banks, nine-tenths in the former.
All taxes on savings banks are distributed to the towns in which the depositors reside, the tax on non-resident depositors constituting a Literary Fund which is distributed to the towns on the basis of the number of pupils in each.
The banking system, which retains many features of the Scotch system, on which it was originally modelled, combines security for the note-holders and depositors with prompt increase and diminution of the circulation in accordance with the varying conditions of trade.
The largest class of depositors are the farmers, who more and more look to the banks for credit, instead of to the merchants and cotton speculators.
Per peso, and that new issues should be made only through the issue department and against deposits of gold, which deposits would be returned to depositors on the presentation of the currency issued.
The savings banks had on their books at the close of 1905 about 355,7 1 4 depositors, with £13,500,000 to their credit.
The bill also conferred the franchise on holders of a certain amount of stock, on depositors in savings banks, on graduates of universities, and on other persons qualified by position or education.
Emergency assessments, not to exceed 2%, may be made whenever necessary to pay in full the depositors in an insolvent bank; if the guaranty fund is impaired to such a degree that it is not made up by the 2% emergency assessment, the state banking board issues certificates of indebtedness which draw 6% interest and which are paid out of the assessment.
Any national bank may secure its depositors in this manner if it so desires.