The business done by these banks is confined to the re-ceiving of deposits in small sums, usually limited not to exceed a certain amount from each depositor, upon which deposits interest is paid at rates varying from 2 to 4 per cent per annum.

Some of these banks, known as "stock savings banks," are organized with capital stock, which participates in the profits over and above the interest paid on deposits, but the greater part of the business is done by "mutual" savings banks, conducted entirely for the benefit of the depositors, who receive in the form of interest all the profits made over and above the necessary expenses, and a moderate portion of the profits is laid aside in a surplus fund to provide for any unexpected losses which might occur.

"Stock" savings banks arc managed usually by directors, or trustees, chosen annually by the shareholders, but the management of "mutual" savings banks is usually entrusted to a board of trustees, composed of the organizers or incorporators of the bank, and continuing indefinitely thereafter, vacancies occurring from death or disqualification being filled by the surviving members of the board. These trustees have the power to appoint the officers and clerks to conduct the business, and, within the limitations of law, to prescribe how the affairs shall be managed. No trustee is allowed to receive any compensation whatever for his services, unless employed regularly as an executive officer, nor is he allowed to borrow any of the funds of the bank, nor to be in any way indebted to it.

The profits are made chiefly by lending out the deposits on the security of real estate estimated to be worth twice as much as the amount loaned on it; also by purchasing for investment United States bonds and bonds issued by States, counties, cities or towns. To a limited amount they are sometimes permitted to invest in railroad bonds and stocks and in bank stocks.

Deposits in savings banks, unlike those in commercial banks, are made with the intention of allowing them to remain for a certain length of time, and in this view the funds are largely invested in loans on real estate, which are usually prohibited to commercial banks because such investments cannot ordinarily lie quickly converted into cash wherewith to pay off depositors if they desire to withdraw their funds. To provide against any sudden withdrawal, deposits in savings banks are usually made under the distinct agreement with the depositor that the bank is entitled to 30 or 60 days' notice from him of his desire to withdraw bis deposit at the end of that time. This is to afford the bank some time within which to sell its securities, or otherwise arrange to provide the cash to meet demands of depositors. This rule operates sometimes, too, to check any panic arising among the depositors, from idle rumor or otherwise, as to the safety of their deposits, for it gives time for proving the falsity of the rumor and re-establishing confidence among the depositors.

The business of a "stock" savings bank can usually be discontinued, if it is in a sound condition, by a vote of two-thirds of the shares, or of a "mutual" savings bank by a vote of two-thirds of the number of trustees. In ease of the unsoundness or insolvency of a bank of either class, a receiver may be appointed, by the courts or by other provision of law, to collect its assets and pay off the depositors, as in the case of a "commercial" bank.