ORGANISATION OF SAVINGS BANKS AND THE INVESTMENT 01<" THEIR CAPITAL ^^ 



is high when compared with that paid by private savings banks in most 

 of the European States. Nowithstanding this, the withdrawals in some 

 years exceed the deposits. The following table shows the progress of the 

 ordinary banks from iS6o to 1910 : 



Table II. — Progress of Ordinary Savings Banks from i860 to 1910. 



Year 



Number 



of 

 Books 



Deposits 



in I per 



millions I Inhabitant 



of 1 (in 



crowns | crowns) 



per Book 



(in 

 crowns) 



Number 



of 

 Books 

 per 1,000 

 Inhabi- 

 tants 



Excess of 

 Deposits (+) 



or of 

 Withdraw- 

 als (-) 

 (in 1,000 

 crowns) 



Yearly 



Rate 



of 



Interest 



i860 

 1870 

 1880 

 1890 

 1900 

 1910 



1^7.675 

 353,867 



27.29 

 57-3'5 



7 

 14 

 32 

 57 

 85 

 146 



145 

 162 

 192 

 256 



356 

 518 



49 



85 



167 



224 



239 

 282 



518 

 7.390 

 4,469 

 3,690 

 2,893 



+ 15,586 



4.76 

 4-95 

 4-85 

 3-85 

 458 

 4-49 



As these figures show, the absolute and relative importance of the de- 

 posits, as well as of the number of books, have increased considerably during 

 the last thirty years, while the rate of interest, in spite of various important 

 fluctuations, has on the whole tended to diminish. 



As we know from the preceding section, the Swedish statistics do not 

 show the distribution of depositors according to trade or profession, 

 Though it is impossible to give exact figures, yet from a knowledge of the 

 organisation and topographical distribution of savings banks in Sweden. 

 it may be affrmed that a considerable part of the savings belong to the rural 

 population. In fact of 436 banks existing in 1910 about 326 were in the 

 country, and of those in cities many had founded branches for the agricul- 

 tural population. These savings banks have serious competitors in cities 

 in the ordinary banking establishments but, owing to the great difference 

 in the rate of interest paid by private savings banks and that paid by 

 the postal banks, there is no competition between them. 



The statistics show the amount of the sums entered in the books ; it 

 is seen from them that 75.4 % of the books contained, in 1910, savings not 

 exceeding 500 crowns and 73.2 % of the total deposits was shown in books 

 in which the amounts exceeded 2,000 crowns. 



If we inquire how the ordinary savings banks employ the funds at their 

 disposal, including initial capital, reserves and all other sums in their 

 hands, we shall find that, having full liberty ensured to them by law, they 

 have made very profitable investments. They generally prefer mortgages, 

 chiefly on rural property. 



The following table shows that in 1910 the savings banks invested 

 56 % of their funds in mortgages : 



