Deposits


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Related to Deposits: Bank deposits, Security Deposits

Deposits

 

the monetary resources of enterprises, organizations, and the population which are deposited in credit institutions.

In capitalist countries deposits constitute one of the sources of loan capital. Deposits are made by industrial, commercial, and financial capitalists and are kept mainly in the major banks, which facilitates the centralization and concentration of capital and reinforces the domination of large capital. Savings and temporarily free capital owned by various sectors of the population, especially the petite and middle bourgeoisie, are also deposited in banks, particularly savings banks. The capital thus accumulated is used to a considerable extent by the state for investing in government securities, financing military expenditures and covering budget deficits, and crediting monopolies. The movement of deposits is subject to the spontaneous laws of capitalism, which are manifested especially sharply during periods of economic crisis, when large-scale withdrawals of deposits are accompanied by the financial collapse of banking institutions and the ruin of holders of small deposits.

In the USSR and other socialist countries, deposits in savings banks and Gosbank (State Bank) are a form of storing and protecting the money saved by the working masses. The growth of deposits, which are by their very nature labor savings, depends on the continuous development of the socialist economy, the rising material welfare of the people, and the growth of real income among the population. The attraction of the population’s deposits helps to strengthen money circulation and serves the needs of expanded socialist reproduction. The sum total of deposits and the growth of the population’s material welfare are increasing steadily in the USSR. Thus, the amount of deposits in savings banks almost tripled between 1960 and 1968. By early 1970 the total amount of deposits had risen to more than 38.4 billion rubles, and the amount of a single account averaged 526 rubles.

Soviet law specifies the right of citizens to keep their capital in credit institutions, dispose of the deposits freely, receive income on the deposits in the form of interest or lottery chances, and make noncash transfers. Deposits may be of the demand, time, lottery, or conditional type. Demand deposits are accepted and drawn (completely or partially) at any time upon request of the depositor. They may be payable to a named person or to the bearer. These deposits earn income at the rate of 2 percent annually. Time deposits, which are accepted for not less than six months, earn income at the higher rate of 3 percent annually. Lottery deposits earn income in the form of lottery winnings; drawings take place twice a year. Conditional deposits are payable to depositors upon observance of specific conditions, for example, when the depositor graduates from a university or reaches full legal age. Deposits are drawn on the basis of documents verifying the fulfillment of the conditions established for the account.

Deposits are accepted in unrestricted amounts and for un-restricted periods of time. The deposits and the income earned on them are free from taxation and duties. The state guarantees the secrecy and protection of deposits, as well as payment upon the first request of the depositor. The accounts of citizens are inviolable. Citizens may make deposits in the form of both cash and checks, or as noncash transfers. Non-cash transfers to accounts in savings banks have been developed to handle the wages of industrial and office workers, the monetary income of kolkhoz personnel, and pensions. In addition to deposits from the population, savings banks also accept deposits from several organizations, such as village soviets, kolkhozes, local trade union committees, and mutual insurance funds. The capital attracted by savings banks as deposits, with the exception of the necessary cash reserve, is used by the Gosbank of the USSR for crediting the national economy.

M. L. KOGAN

References in classic literature ?
Scarcely any fact struck me more when examining many hundred miles of the South American coasts, which have been upraised several hundred feet within the recent period, than the absence of any recent deposits sufficiently extensive to last for even a short geological period.
On the other hand, as long as the bed of the sea remained stationary, thick deposits could not have been accumulated in the shallow parts, which are the most favourable to life.
I'm sure it MUST be unconstitutional for a president to remove your father's deposits. If I were in your place, Mr.
Long before the public had ceased to talk about the removal of the deposits, Mr.
"The money was coming in all right." The deposits you understand--the savings of Thrift.
The fellow had a pretty fancy in names: the "Orb" Deposit Bank, the "Sceptre" Mutual Aid Society, the "Thrift and Independence" Association.
The deposit intrusted to Van Baerle, and carefully locked up by him, was nothing more nor less than John de Witt's correspondence with the Marquis de Louvois, the war minister of the King of France; only the godfather forbore giving to his godson the least intimation concerning the political importance of the secret, merely desiring him not to deliver the parcel to any one but to himself, or to whomsoever he should send to claim it in his name.
"Then I shall put you in the way, Doctor," said the judge; "give up to us the papers which the traitor Cornelius de Witt deposited with you in the month of January last."
That deposit may be at any moment withdrawn, and if I had employed it for another purpose, I should bring on me a disgraceful bankruptcy.
"Gentlemen," said Athos, "you forget that last night the general confided to me a deposit over which I am bound to watch.
The red earth, like that of the Pampas, in which these remains were embedded, contains, according to Professor Ehrenberg, eight fresh-water and one salt-water infusorial animalcule; therefore, probably, it was an estuary deposit.
The interest he took in the matter now, induced him to open the sealed instructions which had been deposited with the Diamond.