with which the distribution to the funds was unable to beep even pace. —
The following summary shows the different binds of investments.
1880 1890 - 1900 1910 1913
Bonds, outstanding claims on communes
and the lik e ................................... 16'04 % 11*60 % 16'48 % 13*79 % 14*91 %
Outstanding claims on private persons:
against mortgages ........................ 42*70 » 51*54 > 51*37 » 56*11 > 57*21 >
against su re tie s ....................................... 30*76 > 24*61 » 17*98 » 16*43 » 14*80 >
Cash and other accounts............................10*50 > 12*25 » 14*17 » 13*67 » 13*08 »
It will be seen from the above summary that the outstanding claims
bacbed by guarantor have been relatively decreasing, whereas investments
in mortgages have been coming into more and more extensive use. However,
the loans made against bacbers’ names still bulb pretty largely in
the minor savings-banbs located mostly in the country, where there is; a
personal bond between the banb and its customers. According as the banbs
increase in size, transactions of this bind are seen to figure less prominently
and the money which the public has entrusted to the banb will be invested
preferably in mortgages or in bonds. In 1913 the figures worbed out ;as
follows :
In Savings-Banks where Bonds, .
the aggregate Balance communal
of Deposits was claims etc.
Under 50 000 kr. 0 29 %
50000— 100 000 » 2-43 >
100 000— 250 000 • 4-90 >
250 000— 500 000 > 4-03 >
500 000—1000 000 j 4-75 >
1 000 000—5 000 000 > 9-58 >
Over 5 000 000 kr. . . 20*10 »
Claims on private persons against
Mortgages and
Mortgages Guarantors
Securities
Guarantors
Securities
35*23 %
37*15 »
38*59 »
38*89 >
41*52 >
46*23 >
55*30 >
2*68 %
8*85 >
9*58 >
7*74 »
8*29 »
9*19 ».
4*63 >
54*04 %
43*23 >
38*16 »
38*76 »
34*54 »
20*57 >
7*22 »
Cash
and
other
Accounts
7*76 %
8*34 >
8*77. »
10*68 »
10*90 >
14*43 >
12*75 »
The expenses of management of the savings-banbs amounted in 1913 on an
average1" to 0*43 %, in ratio to deposits, and formed 1*09 j f o i the total amount
of money passing through the hands of the bank.
The rate of interest for deposits' was on a general average for the savings-
banks of 1913 4*49 % (effective interest 4*48 %), though with great fluctuations
for banks of different size. In 39 .savings-banks, in which the..average of, the
deposited capital was about 1 825 000 kronor, the interest was 4 %, in 311
savings-banks with an average capital of about 2 560 000 kronor, i||t ,was
4Va °/o, and in 73 savings-banks, in which the capital deposited was on an
average 814 000 kronor, the interest was 5 %. — The apparent anomaly that
the smaller savings-banks, in spite of their comparatively heavy working expenses,
can afford to give a higher interest than the bigger banks, is readily accounted
for by the nature of their loan transactions. It has been explained above that
it is especially the smaller banks that carry on the more lucrative business of
lending to customers on the security of backers’ names.
The new schedules prescribed for savings-bank returns have enriched savings-
banks statistics with a fresh body of data. Of very particular interest are the
data relating to the interest charged on loans to customers. In 1913 the lowest,
generally adopted, rate of interest for loans against mortgages was 5 %. In
loans granted on the security of * guarantors the rate of interest was higher, as
a rule by a half or one per cent.
In 1884 the Post-Office Savings-Bank was founded. This institution,
which receives deposits and mahes payment (after due notice) through
the Post Office, belongs to the State, which has entered into a guarantee
for the security of the money deposited in it. The administration of
the Post-Office Savings-Bank is in the hands of a Board composed of the
Postmaster-General, in the capacity of Chairman, and four members: notably
one Bureau Chief in the Post Office Board, who is told off as adviser
in “savings-bank matters, one member nominated by the King, one of the
Commissioners (directors) of the Bank of Sweden, and one of the National
Debt Board. BHThe progress of the Post-Office Savings-Bank system is
exhibited by the following figures, giving the averages for some years:
Average Balance, kr. :
per Year Pass- per Head of
Number
of
Offices
Number o
Pass-books
1884 . . 1575 79 513
1890 . . 1942 237 060
1900 . . 2 652 566 805
1910 . . 3 245 557337
1911' 1 . 3 286 565 759
1912 . . 3328 569 534
1913 . . 3 360 575 700
Depositors’
Balance,
kronor
827 641
13 016 554
56 461391
46 253411
47 186 406
47 716785
48 075 655
book
10*41
54*91
99*61
82*99
83*40
83*78
83*51
pop.
0*18
2*72
10*99
8*37
9*42
8*61
. 8*53
It will be seen that the Post-Office Savings-Bank has not made very
rapid progress. Indeed, during the last decennium there has been a
backward ebb, as will best be realized by comparing the withdrawals and
the deposits. In 1900 the withdrawals were as much as 140 % of the
deposits; the difference between them was close on 5 ^ million kronor.
In 1913 the corresponding figures were 109*00 %, and somewhat over I1/*
million kronor.
In Sweden the Post-Office Savings-Bank has been particularly appreciated
in sparsely populated regions, which, but for its existence, would
have had to do without a savings-bank. But, owing to the advantages
it holds out, the chief of which is its ready accessibility, it has managed
to thrive pretty well in places well supplied with privlate savings-banks.
As regards the balance per pass-book, it is interesting to compare the
Post-Office Savings-Bank with the private savings-banks. Whereas in
the private savings-banks the average value of a pass-book has been
gradually rising, the development in the case of the Post-Office Savings-
Bank has gone in the reverse direction. I t is true that the average
value of these pass-books steadily rose from 1884, when it was 10*41 kronor,
up to 1899, when it was 107*69 kronor; but afterwards it sank steadily
(except for the years 1903—04), down to 1909, when it was 81*73
kronor. In recent years there has been a slight rise. ■—• The chief mission
of the Post-Office Savings-Bank from the very outset was to form an
always getatable and absolutely safe savings-bank for persons of small
means, and particularly for the rising generation. During the first
years of its existence, however, the Post-Office Savings-Bank did
not make any tangible progress in this regard. The sale of savings