The Washington herald., 1908-08-03
BANK DRAIN Is OYER
Savings DepOsitOrs Now Live
on Their Wages.
FINANCIERS IN HAPPY MOOD
Expected Rush for. Cash at Interest
Time Failed 10 CCme-COnditions
Among wage Farmers About Nor
NAL Again, They Say-TaIks with
Heads of New York Institutions.

/ New York. Aug. 2-July % was the
third Monday in July. and the day when
/ the savings banks pay the semi-annuaI
/ interest Then It is expected that there
VIII be Withdrawals from accounts. one
reason for this is the suspicion existing
in. the minds OF many depositors in say
ings banks that in order 10 get their in
terest beyond any risk Of loss it is neces-
sary TO draw il out on the spot Then
deposito-s who have wanted money for
one purpose or another. but delayed draw
ing Il on account OF the date for collect
ing interest, take out on that day what
they want
Expected Drain Fails to Come.
Presidents Of savings banks had this
year expected a large draft on Monday.
Many depositors had drawn out In Janu-
ary for their living expenses The OctO-
Der panic went by and left them out Of
work Some OF them had even lost their
places before that time. so every indica-
ton was for heavy draft on the savings
banks
The drain did not come. and the presi-
dents VINO had made provision for this
drawing out OF savings take this action
Of their depositors as an indication that
their business is 70 be normal in the
future That means that the men de-
prived OF work by the hard times Of last
sumner and autumn are al work again
and are living from their wages.
Living on Their Wages.
We feel that our business now Is
about normal said Henry a Schenck. OF
the Bowery Savings Bank. the largest
savings institution in New York. "as the
result OF the action taken by our deposi-
tors on Monday On Monday we paid out
S7ooca. as against 10000 last year on the
same day.
OF course. we never ask OF know fo-
what purpose our depositors withdraw
their funds feel myself that our busl-
ness has got back 20 its oId-time basis.
and that our depositOrs are no longer
drawing from their savings The money 10
live on"
President c. z. Sprague. OF the Union
Dime Savings Bank. had made prepara- I
tons 20 have his 6eposi-ors draw out a
large amount 1T was in expectation
of that" said AI-- Sp-azue. that we laid
in a large supply OF cash IN order that
'aaA lhf@-ANlA~ might Atl A.4E4T money IN
any form they wanted IT, But the de- I
man6 for IL did not arrive The amount I
drawn out was much smaller than in /
January. when people were feeling most
the result of the October panic
Another evidence Of improved condi- /
tons that I noticed was IN TIE bank /
book hyPothecation- When people are \
feeling the sting OF hard times they will 4
take their books 90 a business bank 4
hypothecate them there and pay a high /
interest for a short time rather than lose
-heir interest for a long period BY draw
Ing the money out 50 far as 7 have
been able TO observe that has not been
done recently
James QUinlan. president Of the Green
vich Savings Bank. had a striking illus
-ration Of the improved condition Of af-
fairs when he consulted with his book
keeper as TO the amount so far paid out
IN July IN comparison with what the de-
positors withdrew last July. NJ Quinian
SAID that $4,000 more was Withdrawn a
year ago n July
No Call for Savings.
The so-called panic Of October. Is17,''
said Mr.. Cuiulan. was In reality the
panic Of March. 1917. and il happens 10
be known as the October .panlc. merely
because the effects had a chance 70 &C L
emulate by that time L was acute in
August, was badly felt in July. and IN
-eallty began in March On the first OF
hat month I ceased to loan on bond and
mortgage
That more was drawn out during JULY.
81. than there has been this year shows
low much conditions have improved. I
ont think that any Of our depositors
re now drawing out money 70 live on.
nd business SO far as the drafts are ,
oncerned. has become normal again
The story at the Dry Dock Savings ,
tank was the same 7 am the dean OF
II the savings bank presidents in New ,
orS-' said President Andrew Mills. Of !
hat institution. and 7 can frankly saw
hat in all my experience have never
1Owu time in which II was 50 difficult
D tell just what 70 expect from the pub
C. Il was with the idea that we might %
esd a great deal of available cash on
be- third Monday OF July that I made e
arrangements 20 get all that might be c
Yet there was no such with o
-awal OF funds as 10 Indicate that the o
apositors were drawing their savings Il
VI 10 live on"
President Nfulrey. OF The EmiErant Saw :
gs Bank. has found that the same sit
2tiOn exists IN regard 90 his depositors. 7
Il was the opinion Of most Of the bank \
s that this present Improvement which ,
ls brought their business back 10 a nor
al standard viii be still more notice. =,
Die after election >