gs banks seek to keep invested as large a part as possible of
their assets, keeping only in ready cash enough to meet a possible
temporary excess of withdrawals over deposits. In contrast with the
policy of commercial banks with their demand deposits, the sound
policy for savings banks is to reserve the right to require notice of
intention to withdraw. The period of such notice varies from a
minimum of ten days to a maximum of about sixty days. In ordinary
circumstances it is not needful or usual for a bank to exercise this
right, but it is a needful safeguard in times of commercial crises.
This requirement of notice is greatly to the advantage of depositors
collectively and thus of the community as a whole. It is not an undue
limitation of the rights of the individual depositor. It is unfair
for the individual, in a period of financial stress, to seek his own
safety in a manner which is impossible for all, and thus to endanger
the interests of all.[9]

The mutual savings banks in 1914 had (on the average) but six tenths
of a cent of actual cash (and "checks and cash items") in their tills
for every dollar of deposits, but in addition they had for every
dollar of deposits four cents due on demand from state and national
(commercial) banks. In the aggregate these demand deposits amounted to
the large sum of $172,000,000, a large part of which bore a low rate
of interest.

The depositors in savings banks have a direct legal claim on the bank
as a corporation. The bank's only means of payment are its assets,
consisting of claims upon the owners of such wealth as houses,
factories, railroads, electric light plants, good roads, and school
buildings. Thus virtually the depositors have by their savings made
possible the building and equipping of these actual forms of wealth,
and have an equitable claim upon the usance of them, which claim is
met by the payment of interest and dividends to the savings banks.
Viewed in this way the great social importance of the savings function
appears, and the importance of developing the savings institutions.

Sec. 7. #Postal savings plan.# In many countries of the world the
governments have not only authorized private, corporate, and trustee
savings banks, but have provided public agencies where it is possible
for the citizens to deposit small amounts. Thus municipal, and what
are called communal, savings banks are operated by many European
cities; but the most effective and widely used a