THE FIRST THRIFT CONFERENCE 39 



nized as a private establishment under the general law of 2 J August i86i, 

 and it formed a corporation in virtue of the decree of 27 June 188 1. which 

 approved its bydaws. 



In order to extend the advantage of thrift to other provinces and 

 encourage it throughout the country, the council of the Mortgage Credit 

 Bank accepted from the government a further charge to form other sav- 

 ings banks in different towns, with the help of sums supplied for such end 

 by the State. New banks, were thus founded between 1901 and 1910 in 

 Valparaiso, I(iui(|ue, Concepcion, Antofagasta, Taica, Chilian, Valdivia, 

 Serena, Curico, Ternuco, Tacua and San Felipe. 



As the activit}^ and the working of these establishments won complete 

 approval, the public authority prescribed by the law of 22 August 1910 

 that all those in existence and all which should in future be constituted 

 should be grouped in a single institution called the National Savings Bank. 

 Its direction was entrusted to the council of the Mortgage Credit Bank ; 

 it received complete administrative autonomy and full liberty to organize 

 its activity. * . 



We should note however that this fusion did not affect the Savings 

 Bank of vSantiago which continued to do business within the province from 

 which it took its name in the most complete inde[)endence of the National 

 Savings Bank, altbjugh it frlfilled the lattcr's function of a central bank 

 within Santiago province where it reigned exclusively. Thus it has come 

 about that there are now two organs of thrift in Chile : the Savings Bank 

 of Santiago, a private establishment ; and the official National Savings 

 Bank. The two are absolutely independent of each other, but generally 

 act in agreement in order to encourage thrift and popularize its principles. 

 Moreover both are directed by the managing council of the mortgage cre- 

 dit bank. 



Since 1911, that is since its formation, the National Savings Bank 

 has founded central offices at Rancagua, Canquenes, I/inares, Angeles, 

 Asorno and Puerto Monti ; and these make, together with those founded 

 in the preceding period, a total of eighteen central offices. In addition 

 thirty-five Viranch offices and many post-office agencies are active in the 

 country. 



Since they have been founded the Chilian savmgs banks have always 

 conducted their business with perfect regularit3^ Their administrati\'e 

 council, which has most extensive powers, has reformed and modified their 

 organization with a view to a better discharge of their tasks. 



At first the by-laws allowed deposits to be invested only in letters of 

 credit of the Mortgage Credit Bank. This investment seemed at first 

 to be justified because it fulfilled the legal provision authorizing this in- 

 stitution to employ its funds for the. encouragement of savings banks. 



But subsequently, in order to allow depo.sitors to utilize their depo- 

 sits rapidly as a means of becoming landov.'ners, and also in order to encou- 

 rage the formation of small holdings, the administrative council made the 

 decision — still recent — that deposits may also be used for the purchase 

 of properties to be ceded immediately to depositors, on certain conditions. 



