no
THE IMMIGRATION PROBLEM
incorporated. They are, as a rule, privately and in
dividually owned. In every center of alien popula
tion there is a very sharp competition among banks
conducted by men of the different immigrant races.
Altho the connection with New York City in one way
is very intimate, there is no close alliance through
ownership. It is believed that not more than a dozen
of the immigrant banks of New York City have
branches in the interior.
With some notable exceptions, branch banks are
not maintained. Mismanagement and dishonesty on
the part of those placed in charge appear to have
been the leading cause of failures in the attempts to
establish branch banks. The business is essentially a
local development. Of the no establishments from
which specific information was secured during the re
cent investigation by the national government, 97 re
ported that branches were not maintained.
Banking Functions—Deposits
These immigrant institutions have only four distinct
banking functions—deposits, loans, money exchange,
and foreign exchange. Collections, domestic exchange,
insurance, and rentals are carried on by a considerable
number of banks, but the first four mentioned are the
distinctive banking functions.
The receipt of deposits is as a rule merely inci
dental to the main functions of an immigrant bank
and directly contributory to the personal interests of
the proprietors. Immigrant banks are rarely com
mercial or savings institutions. Deposits are usually
left for temporary safe-keeping rather than as inter
est-bearing savings accounts. Such deposits are not