This section is from the book "Banking Principles And Practice", by Ray B. Westerfield. Also available from Amazon: Banking principles and practice.
The earliest savings banks were founded in Philadelphia in 1816, in Boston in 1816, in Baltimore in 1818, and in New York in 1819. These were of the mutual type.
The growth of mutual and joint-stock savings banks is indicated by the figures4 in the table on page 438 for the census years.
The most rapid growth appears in the decade 1900-1910. Between 1910 and 1919 the deposits of the savers increased from country and that our per capita savings are second only to those of Germany.
4 Taken from the Report of the Comptroller of the Currency, 1919, Volume I, pp.167-168.
Year | Number of Banks | Number of Depositors (In millions) | Deposits (In millions) | Average Due Each Depositor | Average per Person in the United States |
1820 | 10 | 8 | $ 1 | $131.86 | $ .12 |
1830 | 36 | 38 | 6 | 183.09 | .54 |
1840 | 61 | 78 | 14 | 178.54 | .82 |
1850 | 108 | 251 | 43 | 172.78 | 1.87 |
1860 | 278 | 693 | 149 | 215.13 | 4.75 |
1870 | 517 | 1,630 | 549 | 337.17 | 14.26 |
1880 | 629 | 2,335 | 819 | 350.17 | 16.33 |
1890 | 921 | 4,258 | 1,524 | 358.03 | 24.35 |
1900 | 1,002 | 6,107 | 2,449 | 401.10 | 31.78 |
1910 | 1,759 | 9,142 | 4,070 | 445.20 | 45.05 |
1915 | 2,159 | 11,285 | 4,997 | 442.83 | 49.91 |
1916 | 1,864 | 11,148 11,366 | 5,087 | 456.31 476.60 | |
1917 | 1,807 | 5,417 | |||
1918 | 1,819 | 11,379 | 5,471 | 480.79 | |
1919 | 1,719 | 11,434 | 5.902 | 516.18 | |
$4,070 million to $5,902 million, or 45 per cent. During this decade, however, the price level and cost of living increased 108 per cent (Bradstreet), and therefore the savers have suffered despite their thrift, since their savings, including the increases by interest and additional deposits, have decreased in purchasing power.
A comparative statement based on the Report of the Comptroller of the Currency, 1919, Volume I, pp. 209-210, of the use made of savings banks in various leading countries is given in the table on page 439.
From this it appears that the use of the postal savings banks in the United States is very meager compared, absolutely and relatively, with the use in other leading countries, and that we rank low in the relative proportion of our people who have savings bank deposits of any kind. On the other hand, it appears that our individual accounts (probably reflecting the difference in standards of living) are very much larger than in any other
Country | Savings Bank | Number of Depositors (In millions) | Deposits (In millions ) | Average Deposit Account | Average Deposit per Person |
France......... | Private | 85 | $ 3 | $ 34.92 | $ .90 |
Postal | 1,922 | 591 | 74.64 | 14.93 | |
Germany............ | Public and corporate | 27,205 | 5,105 | 187.68 | 76.53 |
Italy........... | Communal and corporate | 2,473 | 491 | 198.71 | 13.45 |
Postal | 6,472 | 431 | 66.73 | 11.82 | |
Japan.......... | Private | 9,705 | 99 | 10.29 | 1.79 |
Postal | 13,893 | 154 | 11.14 | 2.78 | |
United Kingdom. | Trustee | 2,015 | 261 | 129.84 | 5.99 |
Postal | 14,746 | 957 | 64.90 | 21.92 | |
United States . .. | Postal | 565 | 167 | 295.88 | 1.57 |
Mutual and joint-stock | 1,434 | 5,902 | 516.19 | 55.30 |
The distribution of the mutual savings banks shows a high concentration in the North and East. The figures in the table on page 440 show the situation on June 30, 1919.
The statistics of the joint-stock savings banks are less useful for the reasons that in many states they are included with the state banks, and in others (New Jersey and Minnesota) with the mutual banks. Of the 1,097 joint-stock savings banks reported by the Comptroller, 926 were in Iowa.
 
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