New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-04
60-DAY CLAUSE
AIDS MONEY HERE
Savings Banks Adopt the
Richards Plan in Meet
ing DepositOrS.
MANY WISH TO PAY
IN FULL ON DEMAND
Two East Side Institutions Taken
Over by Situation
Well in Hand.

The enforcement yesterday by all
the savings banks of the city OF the
banking law clause requiring sixty days
notice from depositors before withdraw
ais of funds would be allowed had IT'S
contributing effect toward relieving the
strain Of the money situation as re-
suit OF the European war. The action
was taken by the boards Of the various
banks at the suggestion Of Eugene
Lamb Richards, State Superintendent
of Banks.
The officials of the banks who are
members of the New York Savings
Bank Association met at the office OF
the State Superintendent and adopted
a resolution requiring the enforcement
of the sixty-day clause. Mr.. Richards
extended his request TO all savings
banks in the state, as well as private
banks. which have been under the con-
troll of the State Banking Department
since August /. He sent the following
letter to the presidents Of all savings
banks outside the city;
"In view Of the European situation
and for the purpose OF conserving cur
rency for our domestic needs, | re-
quest that forthwith a resolution be
adopted by your board Of directors
requiring notice of sixty days before
repaying deposits, and in otherwise
complying with subdivision l, Section
24s of the banking law
THE giving Of the notice was not TO
help any institution or institutions,
he said, "but was caused solely by the
unique and extraordinary conditions
prevailing in Europe. The course
adopted is the only available method OF
preventing large Withdrawals of cur
rency from the banks and from the
country
Run on Banks Ayerted.
The adoption Of the sixty-day clause
had the Immediate effect of shutting
off the abnormal Withdrawals which
some of the savings banks experienced
in the last few days. There was no DIS
order or early runs prior TO the. post
ing Of the siXty-day clause notice, at
anv of the larger banks. Small runs
were experienced at several East Side
private banks. They were met with a
high degree of confidence by the pri--
vate bankers and depositors were PAID
promptly on demand in most cases.
Following a report from state bank
examiners. State Superintendent Klch-
ards took charge of the affairs of two
Fast Side private banks. that controlled
nv NJ. & l.. Jarmulowsky, at 165 East
broadway. and that Of Adolph Mandel,
az 1855 Rivington st. Both of these IN
stitutions had experienced small runs
during the day. Superintendent Rich
ards announced that he would liquldate
the affairs of both banks. -.
In adopting the sixty-day clause II
was decided to permit the banks TO pay
out small amounts IN cases OF emer-
gcncv. Most Of the banks limited TINS
amount 20 $50, but some paid 500, and
one or two paid depositors wishing 10
withdraw in full. The metropolitan,
the Dr. Dock. the Bowery and several
other Of the larger banks paid out con-
siderable sums to depositors early IN
the dav Irior to posting the slXty-day
notice as a result of which some de-
Iositors who came later were DIS
rruntled over getting the small
amounts on their deposits. compaf.
ativelv small number of notices. OF
withdrawal of accounts at the end OF
sixty DAYS were served by deposltors
at any Of the savings banks.
The Seaman's Bank for Savings, at
"A Wall St, which is not a member OF
The New York Savings Bank Associa-
ton. enforced the siXty-day clause at
the request of the State Superinten-
dent. Officials of the bank said yes
terday that they had not intended to
take advantage Of the clause, but had
/ done so when personally requested by
/ Suporintcndcnt Richards About five
+ hundred depositors called at the bank
/ during the day for their savings, and
/ those who were not satisfied with the
/ explanation of the sixty-day clause by
/ the officials were paid in full. Only
| thirtv-nine notices of Withdrawals OF
account7 we're left by dcpositors at
/ this bank.
Money Ready for Soldiers.
! Natives Of the European countries
/ at war who had received official notice
/ for service as reserves we're paid in
/ full in most instances where they pre-
sented such notices TO the bank Off
Gals. While there is little prospect of
/ these reserves" getting back to their
native land on any ship at the present
/ time. it was explained that they had
/ to report to their consuls every day
and be prepared for the first possible
/ sailing.
i'm the Williamsburg section there
were runs on two banks, one of which,
at the bank of A. l.. Kass, 81 Graham
/ av., required the calling OF the reserves
1 from the Stage ST. station TO preserve
/ order. Depostors were permitted TO
/ withdraw from 50 to $40 each. A small
run started at the Williamsburg branch
Of the State Bank, but soon simmered
cut when William Walton, the man
aqer. announced that all depositors
could draw out their full amounts il
/ they so desired.
i There are 40 savings banks in New
/ York State. Their financial statements
I 10 the State Banking Department on
January / showed 3,143,0i4 depositors,
with Sf.741 ,697 1852 to their credit. The
total resources were given as Sl,926,-
/ c3l.33l.
There are ninety private banks. whose
figures are not obtainable owing TO the
short period that these institutions
have been under the supervision Of
the State Banking Department.
State Superintendent Richards sent
out notice to all private bankers doing
business under the laws of the State
Banking Department that from now
until further notice they will have to
close their banks at p. m.
IL had been the practice OF many OF
the small private banks TO keep open
during the evening and in some in
stances late at night. All private banks
that failed TO file their application to
do business under the new state bank
/ ing laws up to August l will have to
90 out of business before November J..
Small runs we're made on several Of
the branch banks in the Brownsville
section Of Brooklyn yesterday. A large
number Of women depositors of the