In our system of banking, there are at least three types of institutions distinguishable, the savings bank, the investment bank and the commercial bank.

The organization of savings banks is along entirely different lines from either the investment banks or the commercial banks, and is easily distinguishable from them. They usually encourage savings on the part of the people, endeavor to collect such savings otherwise hoarded by the populace, and, after acquiring them in sufficiently large numbers and amounts, use them in loans on such security as real estate, and by investments in Government bonds, high grade railroad bonds, and such other securities as are designated legal investments for trust funds by the State wherein the savings bank is located. In this way they release such funds for productive purposes. Legislative enactments make the operations of savings banks of a most conservative nature, and every effort is made, on the part of the public, through its legislature, to protect the depositors as well as to maintain a system of savings of a quasi-public nature. The funds of savings banks are usually tied up for a long period of time, and the security on which loans are made by them is often of a character that cannot be marketable to the full advantage, except at an opportune time