The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-08-11
DRAW SAYINGS TO BUY STOCKS
SWAIL INVESTORS STRIPPING
SAVINGS BANK .lCGOI NTS.
officials OF several Savings Banks Have
Been Noting These Withdrawals for
Three Wceks-Aggrcgate OF Many
Withdrawals IL a Very Large Amount.

Been Noting These Withdrawals for
Three Wceks-Aggrcgate Of Many
Withdrawals IN Very Large Amount.
During the Inst few weeks---in fact, since
the uncertain conditions in Wall Street
drove the price of stocks down below where
they have been, in many instances, for
yesrs--a very large amount Of money has
been withdrawn from the swings banks Of
this city, in almost every case the drafts
being by steady depositors, known to the
officials of the banks to be in no immediate
need Of the large amounts they have taken
out, An investigation of the reasons for
the heavy drafts made by the officials of
the banks has revealed the fact that the
state of affairs in Wall Street, called by
many "the rich mans panic" has turned
out. in fact to be the poor mans oppor-
tunity, an opportunity which he has not
been slow to improve.
Thousands of poor people in this city
who have deposits ranging from 500 up
to 81 600 in the savings banks are to-day
for the first time in their lives owners Of
stocks, which, on account of the low mar
ket. they have been able to procure at very
much less than their actual value Having
no pressing need OF the money which they
have saved and deposited in savings banks
40 long as they have steady employment,
they are able to put their money in stocks
which are now selling low and keep the
stocks until they see fit to sell them.
The president Of one big savings bank
on the Bowery, the depositors in which
come almost entirely from the section
east of the Bowery and south of Fourteenth
street, had this to say yesterday:
ave noticed about three weeks or little
longer ago that certain Of our depositors
who are very steady as a rule and take
very few chances with their money were
drawing out large sums. When I say
large sums, mean sums ranging from $50
up to the limit of deposit that we allow,
$1,000. 1t is our custom always when a
movement to withdraw money is made to
inquire the reason. In this case We were
especially anxious TO know, because those
making drafts were depositors who were
not, so far as we knew, in bad way or in
pressing neeu OF money.
1T was somewhat surprising for us to
learn that in almost every case the money
was being taken for investment in Wall
Street. OF course, whenever the stock
market falls very low there is a rush TO
invest on the part OF poor people, but it
had never, 50 far as 1 know, extended to
the people Of the class who are now invest
p,nnla rnnnipy right nT t,a
tenement houses, rushing down to Wall
Street with the few hundred dollars they
have drawn from us and buying stock. They
are not buying IL on margins, but buying It
outright. taking it home with them, and
keeping 1t against the day when on each
share that they hold they can realize
profit Of anywhere from IS up.
Az matter of fact. the East Side seems
to be getting very shrewd and while GER
tain people in the city are bowling about
what they choose to characterize the
rich men, the poor men and women of the
city who have had the wisdom and shrewd-
ness to save up little money are getting
in and before long are bound to make
good profits on these Wall Street invest
ments.
1T is amazing the amount Of knowledge
of stock values that some Of these people
on the East Side have, whom you wouldn't
suspect Of knowing anything about such
subjects. have been curious enough to
talk to some Of them and have come to
the conclusion that all the shrewdness in
New York is not domiciled west OF the
Bowery. For instance, a small East Side
who has had an account with
us for some years withdrew his entire
81 600 the oil her day, and when asked him
in a friendly way what he was going to
do with il he said he was buying stock. |
asked him what kind of st ock he was going
to buy, He named one of the many stocks
that are well down Just now and bound
to rise SOON He told me he had withdrawn
over 1000 from other savings banks
where he had deposits, and invested it
still another stock, which | regard
as solid as rock. Now that man is going
to pick up lot of money inside Of three
months. OF that | am certain. We will
have his 81 900 back again on deposit as
soon as he sells and will probably keep it
until he sees another good chance
THE movement on the part of poor
people TO buy took has hit the banks that
allow $1,000 deposits harder than it has
those which have maximum of 81 900;
but in the end all Of the savings banks will
profit, for | don't think any Of those who
have been buying stocks are going to lose
All they've got to do is to
hold on"
AT the Emigrant Industrial Savings Bank,
the Bowery Savings Bank and the Dry
Dock Savings Institution the officials all
had the same story to tell OF poor depositors
lrawng out money to invest in stocks.
In fact, there il hardly n savings institu-
ion in the city which doesn't report the