10. Identification

Of course, the treasurer or paying teller must assure himself that he is paying to the proper person, and this is often a question of no small difficulty. To aid in identification and insure paying to the rightful persons, the rule is very rigid that the depositor's pass book must be presented, in which the amount withdrawn is entered. In the case of hanks of discount and deposit, checks, as we have seen, are generally given to others to present for payment. Even in depositing money in such hanks it is not essential lor the depositor to present his pass book; it may be received without making such an entry.

11. Payment By Check

Sometimes a depositor pre fers to receive a check on another bank in payment instead of money, especially when he wishes to send the sum drawn away. As savings banks keep one or more accounts with a bank of discount, a depositor is sometimes accommodated.

12. Death Of Depositors

One peculiarity of the busi ness of savings hanks is, depositors die, or go away, and the bank loses sight of them. If they die, their children perhaps do not know that they have any money in the bank, and thus the deposit in one sense becomes dead. There is a law in every state providing that property escheats to the state when the individual ownership of it ceases, but the state rarely comes into possession of any. Within a few years the state of New York has passed an excellent law, providing that when a savings-bank depositor has not appeared for three years, either to make or withdraw a deposit, or have the interest entered in his book, the bank must advertise his name in the daily newspapers. The effect of this law is to diminish the number of doubtful or unknown depositors. It is true that the law causes no inconsiderable amount of work to determine whether claimants are honest or not. In many cases they do not know whether their claim is rightful or not; in other cases they try to get what they know does not belong to them; so that a bank must scrutinize very carefully all the demands of individuals who appear in response to such notices.

13. Growth Of Deposits

In 1821 several persons made a deposit of $5 at the Bank for Savings, New York City, in favor of one of their number. The account had remained unchanged, except for the interest, which was periodically added, until 1901, when the bank advertised for information concerning the heirs of the depositor's family. The card was published in the New York City newspapers, where it was seen by a person who knew the depositor. She was still living, and when the matter was told her recalled the circumstance of the deposit. Having proved her identity, the bank paid her $202.04, to which the original balance had grown. Many of the larger city savings banks have had similar cases. Within a reasonable limit every effort is made by them to close accounts that have not been disturbed for a long period. But the aggregate of the sums thus lying in a dormant condition is small compared with the amount of the active accounts. There are a few depositors who, having once made a good beginning at saving their surplus earnings, but failed to continue, let the account rest year after year, content that they do not need the money. There are a few accounts in New York savings banks which were opened by men who afterward joined the federal army in 1861, and have never appeared. There are sailors, too, lost at sea, who will never come back to claim their savings. Every now and then an account of this kind is paid over to the heirs of the original owner.

14. Calling In Pass Books

In some states also depositors are required to present their books as often as once in three years, not only to be assured of their existence, but for the purpose of comparing the amounts with those on the books of the bank. A large defalcation in Massachusetts was the origin of this law. Less than the amounts were entered on the books of the many depositors, and through such intentionally wrong entries a large amount was taken. The law entails a great deal of work on bank officials, but no one accustomed to its operation will ques-tion its utility.