The sun., 1918-07-07
PLEA FOR SAYINGS
BANKS TO CONSERVE
State Association Asks Them
to Subscribe Heavily to
Next Liberty Loan.
EQUAL 6P. C. OF DEPOSITS
Plan Calls for Such New York
Institutions to Take $780,
100000 Of Bonds.

The savings banks Of New York State
are being appealed to by the Savings
Rank Association of this State to con-
serye their receipts during the next four
months, so that they may subscribe in
,eayy volume to the Fourth Liberty
loan, vhL,h is expected to approximate
5000, 100000.
In asking the cooperation OF these in
,,,tu,ions, the association urges that
,bs members subscribe to an amount
equal to six per cent of their total de-
rosits irrespective OF whether the inter-
90, on the fourth loan Is four and one
ouarter or four and one-half per cent.
The banks are asked to sell the bonds to
d.postors and keep all not taken.
Savings bank deposits In New York
State amount to about 1885, 556,000, so
that these institutions would take APP
oroximately s12O.oo0.ooo of the next
loan if they decide to adopt the policy
outlined by the association.
On the Third Loan savings banks sub
scr,bed to s59.7l6,100, and a total OF
N11l,Ssl 800 IpT tut tiiitt
The associations statement says
while the savings banks, in the
main, have performed a considerable
measure Of service In each of the past
three campaigns. it is nevertheless true
owing to the fact that the very nature
OF their functions is such as TO require
considerably more than the ma jor por-
ton Of the funds committed to their care
10 be invested in form Of security
which can not readily be converted into
cash or, in times like the present, evsn
shifted from one kind of security to
another-that the majority of the saw
lngs banks have not purchased largely
Of the Liberty Bonds for their own
account.
Effect on Savings Banks.
10 class OF banking institution Is so
vitality affected by these governmental
borrowings as are the savings banks
A mutual savings bank has no stock
holders: its trustees receive no COM
pensation; every dollar the bank earns
beyond the actual cost Of doing busi-
ness belongs to the depositor SO 1t is
the three and one-hslf millions Of de-
positors in the 141 mutual savings
banks in the state Of New York who
alone are affected by the increase or
decrease in the earnings of these in
stitutions.
AT least so per cent. of the money
deposited in the savings banks Is. and
by the law has to be, permanently in
vested in high class securities: these
securities can not now be sold in large
amounts without causing widespread dis
aster and consequently savings banks
are necessarily limited In their pur-
chases of Government bonds, at any one
time. to the use of a comparatively
small part of their resources
But the Government must have the
money required for a Acknowledgements
ton OF the war and every banker. no
matter what kind of an institution he
headS, or whether such institution Is OPP
Grated under Federal or state laws,
should begin now, Immediately and
forthwith, to SO plan and marshal and
conserve his receipts during the next
four months as to be In a position to
subscribe to the uttermost limit of safety
for bonds of the next Liberty Loan.
Interest on Coming Loan.
Savings banks are deeply interested
IN all the phases OF the next and each
succeeding loan; the rate OF interest {;
the time the bonds have to run; what
manner OF arguments the speakers shall
use in selling campaign and the form.
method and time in making partial pay
mertS.
That We should have knowledge OF
these vital facts early, the Savings Bank
Association should have representative
on the Liberty Loan Committee and in
order TO show good reason for such
recognition. we should be able to state TO
the Federal Reserve Board approx
nately how much the members of this
association might in the aggregate be
expected to subscribe, for the next loan.
provided the conditions governing the
Issue should conform to our reasonable
requirements"