allowed or paid on any sum withdrawn for the time which may have elapsed since the date of the last credit of interest. The above rate is paid, free of taxes, on all deposits.

All depositors shall be subject to the regulations and bylaws of this institution.

The trustees may refuse a deposit at their discretion, and may also at any time return all or part of a deposit.

Interest or dividends will be credited to depositors only on the first days of January and July, and this interest, if not withdrawn, draws interest from the date of such credits, compounding twice every year.

Depositors, ordinarily, will be paid on demand, but the bank reserves the right, when it so desires, to require a notice not longer than thirty days for withdrawals.

A depositor must always present his Bank Book when depositing or withdrawing funds. If not presented personally an order properly signed and witnessed must accompany the Bank Book in case of withdrawals. Leposits, however, may be evidenced by certificates containing tie terms of payment.

Every effort will be made to protect depositors against fraud, but payment made to a person presenting a Bank Book shall be good and valid on the account of the owner, unless the Bank Book has been lost and notice in writing given to the Treasurer of the bank before such payment is made.

When a Bank Book has been lost the Bank shall prescribe the conditions on which a new book may be issued.

If a book of deposit be assigned or transferred by the depositor, it shall be the duty of the person to whom such book has been transferred to notify the bank thereof at once for its approval. If payment be made on a deposit book after it has been assigned, without notice of the assignment, the corporation or its officers will not be liable to pay the same to such assignee or holder, but will be fully discharged therefrom.

Instead of sending a check to the depositor in payment of interest due him he is simply given credit for the amount of the interest just as if he had deposited an equal amount of money. This interest draws interest the same as his other Compound savings. If one has on deposit $600 on January 1, Interest is 1916 and the bank pays 4% semi-annually he would Savings receive credit for $12 interest on July 1, 1916. If he Banks. makes no deposits or withdrawals he would be entitled to interest on $612 from July 1, 1916 to January 1, 1917. His deposits at the

Paid by

bank then would be $624.24. Of this amount $624 will draw interest for six months more, the cents being disregarded and interest being paid on dollars only. Even if no new deposits except the interest are made the interest each time is computed on a larger principal and hence is more than the preceding interest. When interest is paid on principal and interest in this way it is called compound interest.

Money drawing compound interest grows with astonishing rapidity. In the following illustrations the interest is compounded annually. The results are even more amazing when the interest is compounded semi-annually.

"There are two kinds of compound interest. Two illustrations may best explain them. One dollar deposited in a savings bank that pays four per cent annually will amount to $2.19 in twenty years. This is simple compound interest. One dollar, deposited every year for twenty years in the same. Simple and bank at the same rate of interest, will become $30.97. Progressive This is progressive compound interest. To get Compound the full and beneficial results of compound interest Interest. not only must you begin to save but you must keep steadily at it. When you see the effects of progressive saving you find out just how valuable it is to get the thrift habit.

"With humble sums impressive ends may be gained. Nearly every human being can save five cents a day. This amount, saved each day ($1.50 a month) and deposited in a savings What 5 bank that pays four per cent interest will amount Cents a Day to $182.50 in ten years. It will earn $40.06 will do in interest, making its total value at the end of that ten Years. time $225.56 rather a surprising result of the setting aside of a single carfare every day.

Ten Cents a Day will Amount to

"Take ten cents a day, which means a deposit of three dollars every month, and put it through the same process. In ten years you will have saved $365, which will have earned $80.36 interest, making a total of $445.36. This is the result of simply saving the price of an ordinary cigar a day. As you increase the sum saved each day the value of steady saving is only strongly impressed. Fifteen cents a day, or four dollars and a half saved each month and compounded will amount to $668.18 in ten years. Of this sum $120.68 is interest earned. Twenty cents a day or six dollars a month will amount to $890.99 of which $160.99 is interest. These sums saved would scarcely be missed

$445.36 in Ten Years.

If

from the purse of the average man. If you are able to put aside twenty-five cents a day or seven dollars and a half a month, at the end of ten years you will find $1,113.75 to your credit. you are able to make the daily saving thirty cents or nine dollars a month you will be worth $1,336.59. Forty cents a day or twelve dollars a month will roll up the tidy sum of $1,782.16, of which $322.16 is interest; while fifty cents a day or fifteen dollars a month will amount to $2,227.73, of which $402.73 is interest. Hence it is much to your profit to "despise not" the saving of small sums.

ly will

"Now let us see what the systematic or rather progressive saving of a dollar a week can do. In one year the fifty-two dollars saved will earn, at four percent, seventy-eight cents in interest, making a working principal of $52.78 at the start of the second year. At the close of the second year One Dollar you will have $107.67; at the end of the fifth year a Week at $285.86; at the close of the tenth year $633.65. In 4% Annualfifteen years this steady savings of a dollar a week Amount to would show a total result of $1,056.79. At four $2,197.92 in per cent this alone would yield a return of $42.27. 25 Years. At the end of twenty years this kind of saving would total. $1,571.59, while the first quarter-century would find you worth $2,197.92. This sum, if you then stopped saving, at four per cent would earn $87.91 a year. If you kept up the saving of a dollar each week for fifty years you would accumulate $8,057.16.

"Looking at the saving of a dollar a week from a different angle, you find that at the end of thirty years every one of the fifty-two dollars that you had at the end of the first year had increased about fifty-eight times.

"It has been figured out that a man who has deposited five dollars a week, every week, in a savings bank that pays four per cent can, at the end of twenty years, draw out six dollars a week and still leave his wife at his death all the money that he had originally deposited.

"If a man or woman is able to save a dollar a day the results are big. This amount, put into a savings bank that pays four per cent annually will amount to $1,967.98 in principal and interest at the end of five years, and $4,455. 74 at the end of ten years.

"Fifty dollars put into a savings bank each year will amount to the following sums at the end of twenty years; $50 Saved at three per cent annually it will aggregate $1,383.38; Each Year at three and a half per cent it will roll up $1,463.42; at 3% will at four per cent it will amount to $1,548.46; at four $1,383.38 in and a half per cent annually the total will be 20 Years.

'Amount to

$1,639.15, while at five per cent annually it will mean a total of $1,735.96.

"This figuring out of compound interest returns might be continued indefinitely. Sufficient results have been given, however, to show two very important things that the average man or woman who wants to attain a competency must bear in mind, and they are: first, that money will earn more money; second,that the only way to share the result of this kind of labor is to begin to save and then keep constantly at it.

"It might be helpful, in this connection, to see some practical applications of the benefits of compound interest and saving. One of them is what might be called an automatic pension. It has been calculated that if a man whose income remains the The Benefits same year after year will deposit one-third of that income each month in a savings bank that pays four Compound per cent, he will be able to retire at the end of Interest. thirty-five years, and thereafter he or his heirs If he will steadily

of

will receive the full amount of his income. deposit a quarter of his income in the same way he will be able to retire on full pay at the end of forty-one years. A fifth of his income, saved and deposited in this way, will enable him to stop work on full income saved at the end of forty-six years, while a deposit of one-tenth of his income will retire him at the end of sixty years.

"To be able to retire on half income as a result of this kind of steady saving is easier. This can be achieved in twenty-four years by the deposit of one-third of the wages in a savings bank each month; in twenty-eight years by the deposit of one-fourth of the wages; in thirty-two years by the deposit of one-fifth of the income, and forty-five years by the steady saving of one-tenth of the wages.

"What is the depositor to do if he needs a sum of money urgently just before an interest payment? There is a very simple way out of it and in the explanation is a helpful lesson. Let us assume that the depositor has put $1,000 on deposit in a savings bank that pays four per cent interest, with payments Savings Bank Book January 1, and July 1. His first interest date is may be used July 1, and this means that he will get $20 in inas Collateral terest if his thousand dollars is still on deposit. Security. An emergency arises that makes it imperative for him to have $800 for twenty days on June 10. If he draws this out of the savings bank he will lose the interest on it for the six months. What is he to do? He can take his savings bank book to a commercial bank, use it as collateral, and borrow the $800.

Assume that he is charged six per cent interest on this money. This means that it will cost him about $2.60.

Now, if he had drawn the $800 out of a savings bank he would have forfeited $16 in interest. This means that by following the plan just outlined he paid only about $2.60 for the use of the money. Thus he not only practiced economy but maintained the integrity of his savings account. Therefore, it is important for the savings depositor to know just when the interest payments in his bank are made, and not to withdraw money at times when the interest might be forfeited. This, combined with steady savings, is the only way to obtain the big benefits of compound interest."

From Saturday Evening Post.

Banks.

Many people prefer the government's guarantee to repay their savings to that of banks. They deposit their savings in postal savings banks and receive interest from the government at the rate of 2% a year. When the deposit is $20 Postal or more it may be exchanged in multiples of $20 for Savings 21% government bonds. According to the government regulation an individual shall not have interest bearing deposits in excess of $1000. He may deposit larger amounts if he wants no interest upon them. No one may deposit less than $1.00 but for ten cents he may purchase a card upon which he may accumulate ten cent stamps until the whole amounts to one dollar. The card then may be exchanged for a savings certificate. Deposits may be made at any of the larger post offices.

One of the most widely used means for the investment of money in small amounts is furnished by the life insurance companies. The life insurance company in return for Life the payment by the insured person of a fixed annual Insurance. sum called the premium, agrees to pay to the insured at the expiration of a certain number of years a definite sum of money. If the person insured dies before the time for the payment by the company is reached, the insurance company pays the agreed sum to another person called the beneficiary, named by the insured in the policy, or agreement by which the insurance is purchased. This form of life insurance is called Endowment endowment insurance and commonly is written for Policy. twenty year periods although it may be written for other periods.