BANKING: Direct Action

Unable to find enough sound private borrowers, unable to get more than a tiny return on Government securities, U. S. banks have in the last decade faced dwindling incomes. Service charges have been inaugurated or increased, bank interest rates have been cut or abolished. Few weeks ago New Jersey's banking department ordered banks to cut interest to a maximum of 1% on savings and time deposits, and local bankers were somewhat apprehensive of mass withdrawals. Quite different was the situation in Booneville, Iowa (pop. 142).

Month ago the Booneville Savings Bank solved its low income problem by announcing that it would...

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