New-York tribune., 1918-05-17
Savings Increase
Despite Demands
Of War for Gold
Private Banks Must, How.
ever, Meet New Conditions,
Says Myron T. Herrick

Says Myron T. Herrick
That the growing rivalry of postal
savings and Federal farm loan sys-
TENS calls for drastic revisions in the
present methods Of this nation IS
private savings banks was the message
Myron T. Hcrrick, former Governor Of
Ohio and later Ambassador to France,
yesterday bore to the twentytifth an
niversary luncheon of the New York
State Savings Banks Association at
the Waldorf Astoria.
1--WE have arrived at the period of
J change and revolution in the banking
+ business" he said. Owe are facing a
highly privileged ompctition--precise
ly such a competition as has crushed
out private enterprise in many a large
! foreign country. We cannot escape
this fact by ignoring it. Our best hope
I lies in adjusting ourselves to changing
conditions, even, if necessary, by en-
/ gaging in local welfare work.
up to within the past few years,
he continued, banking and insurance
were distinctively private enterprises
in the United States. There was never
any question either as to the success
or solidity of these private companies,
and when the United States establish ed
it's postal savings banks in 1910 the
| intention expressed was not to inter
fere with the private savings banks.
"But of late years the form of our
government has been undergoing q
change. Federal management is re
placing private enterprise, not because
Of any pressing need, but simply be
cause of the tendencies of the times
| Nor is the extension CT votes to women
/ going to act as a check on these ten
dencies.
"Now the era of cheap living has
l'closed. Taxes and the cost OF living
will be high for many years TO come,
and, whether for right or wrong, whether
! for success or failure, the government
is going to experiment with other new
! condition to which we must adapt our
selves"
Raise Is Significant
The raising in the postal savings
/ banks this year of the individuai's
/ monthly deposit limit from $500 to
/ $1,000 is. Mr.. Herrick pointed out, an
J indication of the future that is antici-
pated for these institutions, whose de-
posts are already in excess of $751;
100000. At the same time, he showed,
! the 1000 national farm loan associa- :
tons can, by a very slight amendment
to the law, be transformed into net
work Of government savings banks, tax
exempt and enjoying, besides numerous
other advantages, the powerful aid Of
the governments publicity resources
in attracting deposits.
Only by going directly into the
. A ,I>o- Il i
! and undertaking definite educational
campaigns, can the private savings
banks hope to maintain their status
III the face Of such competition.
"We are called a wasteful people"
he said, "but we have nevertheless had
enough money stored up to oversub-
scribe every recent government bond
| issue, besides buying hugely Of thrift
stamps and contributing millions to
the Red Cross and other charities. At
the same time, contrary to popular i'm
pression, deposits in our savings banks
| have been on the increase, so that to-
, day their combined deposits represent
over S10.000,000 more than the entire
! amount Of actual money in the United
States. AS regards life insurance and
the owning Of houses. too, the Amer
| lcan people are unsurpassed The
basis upon which we should go for
ward in our work is, therefore, there, if
only we properly recognize changed
conditions"
With the government banks inevi.
tably tending to become more ana more
exclusively feeder of the Treasury
Department, this means, Mr.. Herrici
explained, intensive cultivation Of the
local field by the private institutions
1T also means more intimate cultiva
tion, he said, of the farmer and the i'm
migrant; it means the establishment OF
new departments, possibly the passage
Of new laws.
Changes Imperative
"But whatever the obstaclcs. he
! concluded, "these steps must be taken
II our use to the country is to be con-
tinued at the high level it has held in
the past"
Henry A. Schenck, president Of the
Bowery Savings Bank, and retiring
president Of the association, presided
at the luncheon. In brief introduc-
tory address he spoke optmistically OF
the banking future. State Controller
Eugene M. Travis also spoke, declaring
while ne pleaded for a forward looking
view, that it is the narrowmindedncs IS
OF many financial men which, more al.
most than any other single factor, is
! responsible for the socialistic growth
he affirmed is sweeping the country.
An executive session followed the
luncheon. Here great interest was
manifested in sketch left by Mr.. Her.
rick setting forth the educational and
welfare experiments already started by
the Cleveland Savings Society. Re.
ports from the associations various
executive committees were read, and
the following officers elected for the
ensuing year:
Samuel H. Beach, president of the
Rome IN. Y.) Savings Bank. president;
John II. Scatterfield. president of the
American Savings Bank (Buffao), first
vice president; Martin T. Nactmann
president of the Exchange Savings
Bank (Albany), second vice president
John j. Pulleyn, president of the I'm.
migrants Industrial Savings Bank
New York City,, third vice president;
Hollis II. Searlcs. cashier of the Pru.
Dental Savings Bank (Brooklyn), sec
retary, and Walter S. Rose, secretary
of tho Union Savings Bank (Patchopue
l.. ~, treasurer.
500 Men From National Army
Enter New York University
Npw YOrL Iyr;vocc;t,, .,..t..I