Savings Banks

The depreciation of the franc has rendered necessary large in creases in the maximum sum permitted to be held by any single depositor. Before the war, it was only 1,50o francs. This limit was raised in 1916, 1919, 1925 and again in 1926, and in accord ance with the provisions made in the last year, it stands at 12,000 francs for an individual, and at 50,00o for a "society." As 1,500 francs pre-war equal 7,500 francs to-day, it will be seen that the limits have been raised by a far greater extent than was required by the depreciation of the franc.

Germany.

German Savings Banks are organised into thirteen District Associations, together with two separate banks owned by the provinces of Rhineland and Westphalia. Prior to the war, deposits therein amounted to 29,700 million marks. The post-war position is shown in the following table. All figures are in millions of marks.

These statistics afford a clear example of the way in which savings lose their real value when the currency collapses. The real shrinkage began in the closing year of the war, and continued until, with the final disappearance of the old mark in 1923 as a result of inflation, savings had fallen to one-twentieth of their pre war volume.

Following the revaluation of the mark at the ratio of one new Reichsmark to one billion paper marks, legislation was passed to determine the amounts due by savings banks to their depositors. It was obviously impossible to reach an arrangement that was both equitable and practicable. The following provisions were made:— Savings accounts in public savings institutions or in savings banks under Government supervision were revalued by dividing the Estate "available for distribution," i.e., the revalued assets of the savings banks and other available assets of the debtor. The amount so distributed was to aggregate not less than 121% of the gold mark value of such deposits. (Authority, Moody's Manual of Investments, 1928.) In other words, every attempt was to be made to secure for depositors one-eighth of their original savings.

Once confidence was restored by the revaluation of the mark, savings again began to accumulate. By the end of January, 1928, they had reached 5,094 million marks. It will clearly be a long process to overcome the destructive effects of the war and the subsequent period of inflation, so as to restore savings bank deposits to the pre-war level. (N. E. C.)