ORGANISATION OF SAVINGS BANKS AND THE I:\VESTMENT OP THEIR CAPITA!, 8l 



The decline apparent from these figures is also shown in the excess 

 of withdrawals over deposits since the year igoo. 



Excess of Withdrawals 

 over Deposits 

 years crowns % 



1900 5.442,345 140.00 



1905 2,621,033 122.50 



1910 681,042 105.29 



1911 631,060 104.90 



This diminution of deposits in the postal banks is the more remark- 

 able, because the number of post-qffices authorised to act as savings 

 banks has been increasing during the last few years ; from 1,575 in 1884 

 to 2,652 in 1900, 3,245 in 1910 and 3,286 in 1911. These figures show 

 that the postal banks which corresponded to 88 % of the post-offices existing 

 in 1884, corresponded in 1911 to 99.27 %. And, as the deposits have 

 diminished not only in absolute value, but also in proportion to the 

 average amount entered in each book, we may conclude that the postal 

 savings banks in Sweden, while their funds have decreased, have still a 

 great economic and social mission. They leave to private savings banks the 

 custom of those who can accumulate larger savings, and who seek for 

 adequate interest, and devote themselves to the service of the poor who 

 prefer for their small savings the greater convenience and security offered 

 by the postal banks to the higher rates offered by the private savings banks. 

 Where the latter exist, the postal banks, all organised on principles of 

 pubUc utiHty, confine their labours to poor and thinly populated districts, 

 where they alone can aid the humblest classes of society in their efforts to 

 save money. 



It must also be pointed out that, in consequence of this, the cost of admin- 

 istration has increased and rose in 1911 to 296,845 crowns, and the average 

 cost of every transaction is 35 ore, a figure which, however, cannot be consid- 

 ered high when compared with the expenses of postal banks in other 

 countries (i). 



The rules governing the Swedish postal banks must now be considered. 



Of these one of the most important as confirming the social charac- 

 ter of the savings banks and depriving them of any possibiHty of making 

 profits, is that, as in similar institutions in nearly all other countries, 

 the profits on their investments, after deduction of the interest to deposit- 

 ors and the cost of administration, must be exclusively appropriated to 

 the use of the bank itself, and especially to its efforts to encourage sav- 

 ing among the poorer classes. 



The deposits may be made in coin, in coupons of government bonds or 

 in special stamps. 



(i) Sec Bulletin of Economic and Social Instiiulions, no. 8. Aug. 1913. p. 105. 



