42 CHILE - INSURANCE AXD THRIFT 



have not deferred payments and reimbursements. It is even a fact that 

 during these periods there has not only been no diminution but also a slight 

 intensifioation of the movement of deposits. During the months of 1914, 

 which were characterized by general cautiousness and the paralysis of bu- 

 siness and of agricultural and industrial work, as a consequence of the Eu- 

 ropean war, the savings banks had to repay the deposits of many unem- 

 ploj^ed labourers and workmen. This demonstrated completely to the 

 whole working-class population the adv^antages they could derive from 

 the banks in times of famine and umemployment. The banks were able 

 to meet the withdrawals without any moratorium. General confidence 

 in them was strengthened; and the remarkable circumstance was produced 

 that at this abnormal time the increase of deposits in the banks of the 

 centre and south not onh- compensated for the important withdrawals 

 from the banks of the north — in consequence of the crisis in the saltpetre 

 industry — but caused the total business of the year to show considerable 

 improvement .on that of 1913, as is seen from the foregoing table. 



The reserve funds accumulated by these two institutions, the San- 

 tiago Bank and the National Bank, amoimt to 3,361,234 pesos. In view 

 of the fact -that the annual profits begin to reach a considerable sum, the 

 administrative council of the bank ho]:)es the time is not distant at which 

 their reser\'es will enable them directly to advance social progress in the 

 country and the development of its wealth. 



The management of the banks has modified their organization where- 

 ver experience has made this advisable in view of the constant progress. 

 Deposits on current account with a special service of cheques have been 

 introduced, as a complement to the ordinary savings deposits which bear 

 interest at a higher rate but which are limited in amount and subject to 

 certain rules. Thanks to these deposits on current account the small 

 proprietor, small tradesman or manufacturer who has a deposit in a sav- 

 ings bank can also deposit his other funds there, thus localizing the move- 

 ment of his business. The usefulness of deposits of this class compen- 

 sates for the costs entailed by small savings deposits, and allows moreover 

 the accounts called privileged to enjo}' a special rate of interest. 



In all the offices of Chilian savings banks a service of cheques pa3'able 

 at sight and of telegraphic orders has been established. The service- of 

 savings stamps exists throughout the country- and aims at coUecling 

 savings less than ten pesos in amount. Post offices and thrift among school- 

 children are responsible for popularizing this device. The nione3''-boxes 

 have also been very well received, 8,000 of them having been distributed 

 in four ^-ears. 



§ 3. Measures favouring the working class in towns 



AND in the country. 



The work accomplished for the working class by the savings banks 

 of Chile is not limited to the direct encouragement they give to popular 



