The Washington herald., 1919-02-11
SAVINGS BANKS
Get IDLE MONEY
Holland Says Wealth With.
drawn During War is
Being Returned.


ings banks of New York City men
and women who cautiously and yet
sInllingly bring from their pockets or
bags sums of money which, in most
cases, Is the Identical money which
! these persons withdrew from the saw
mSs banks after the war began and
especially after the United States de-
ciared war against Germany.
Early in December a report was
made in this column Of The return to
one Of the savings banks of New
York between November Il and the
first Of December of a million dollars.
With only 6 few exceptions this
money consisted OF the actual bank
bills or federal reserve notes which
depositors withdrew. They had taken
the money home and concealed it in
some convenient place. many Of them
Being in great fear lest because OF
the war the government would cOnGs-
cate money that was in the savings
banks
II one savings bank in New York
received for redeposit a million dol
lars within three weeks after tbs ar
mistice was signed, il was a rea-
sonable presumption that a like OK
perience was the lot OF other savings
banks. Investigation proved that sur
only OF New York City but of other
p parts If the country.
Now there comes an authoritative
statement which tells Of the CuTiOusly
large increase in the deposits OF the
Savings banks OF New York City which
began Immediately after the armistice
was signed The figures are brought
up to about February l.. The reasons
are excellent for believing that like
increases have been made in deposits
in savings banks elsegvAcre in the
United States, and this may explain
the action which has been taken by
the savings bank section of the Amer
iCaT Bankers Association. For it is
the purpose Of the managers of the
American savings banks 10 take such
part in the floating o. the Fifth Lib
erty Loan rs will make il certain IN It
the bonds viii be absorbed either by
the banks themselves or by their
clients in sch amounts as substan-
tally 20 assure the successful float
ins OF this loan.
Increase In Deposits.
The increase in deposits would be
rrlarded ~ phenomenal. possibly con-
tainlug elements Of some embarrass-
mont for the banks. were il not for
the fact that really there is no in
crease to speak of. excepting the nor
NAL increase, bat the enlarged deposits
represent nOthin- else than money
which was taken from the savings
banks after the war began and was
ho1rred un Il thr day afteI. the armis-
tic" was si-Ded.
IN plain fi;ure=. and with this un-
deT,taBding Of the reason Of the aD-
parent increase. il can be reported
that nearly si5.cW'.Cna represented the
increase Of deposits in November and
December. and the further increase in
+ a." first three weeks Of January is
r'Ur"sented by S:2.pNn 0po Cround mum
/n'r~'. There is to be included 81. 900. =
o. interest due the drpOsitors, almost
aN "s which was added to deposit ac-
Therefore. it was possible au-
.rFattveiy. to report that the sav-
n-s banks of New York city received
an apparent increase in deposits be-
tween the d"y Of the arrlistice and
IN" latter f.trt Of January Of approNi-
mate SI1GGynTr
y rapid and :.t careful estimate
which has been made 1T the increase
in deposits in savings banks in
other parts OF the country fi-cs the
total amount at that S2DO OOO, 900.
This sum will 90 far toward en-
abinE the savings banks to carry
on the important work vhi.h they
-ow purpose doing. Of &ifinE in a
large way the government in float
Ing the Fifth Liberty ir.tr. The
savings ban-s mana gers c;,c 40 much
70 thwart ;hc purpose Of those who
are preying upon the purchasers OF
bonds in mall denomiretions. os-
pecially $1,000 bonds. who have car
n ii I o hi
their own advantage and to the dis
idva ntage OF those who b..Ic,ht lit
tic bonds aha have founi il needruI
q part With them. All bIyv:s or
bonds Wi be earnestly told that
here l. 90 doubt but tl.t' when
4Ir bonds mature the SDvcrnmcn.
viii redeem them at par. Further
more they w:II be told that il they
t:g m need of money it will be the
s"tt"r par. for them - Dor NV Sucl,
Il II'.'',:"t a. - y stand .,Fd OF and
Is" thriI liberty bonds for collateral
5. .cEIIty. The New Tcrk savings
inks can lend as much as 500 il
: 800 liberty bond b. offered as
| security.
The Banks and the Railroads.
savings banks. both here and in
| bher parts of the country. have al
ways been well disposed towards
bonds issued by cities or States and
hey have invested throughout the
country about - per cent Of their re-
IoUrces in bonds of this kind. They
iave also been heavy investors in rail
'oad securities. Not any apprehension
Sas been publicly expressed by saw
nss bank managers lest the railroad
situation become so strained as seri-
'usly to inPeril the value of railroad
Iccurities which are held by savings
banks. But it is observed that in
| private, some bank managers shake
| heir heads dubiously. wondering
whether the outcome Of the discussion
vhich refers to the future OF the rail-
,ads will be such as to strengthen
md not impair the value OF railroad
"curitics.
The action Of the savings bank sec
sun Of the American Bankers Asso-
iltiOn tends to confirm the suspicion
Nat some difficulty viii be expericnc-
= by those who are to serve the gov
rnment as statesmen for the Fifth
liberty Loan, in persuading individu-
Is to buy the bonds which represent
his loan. No one looks. at least at
his time. for so successful and i'm
rebate u sale OF the Fifth Liberty
.Oan bonds to individuals as made
he sale OF the Fourth Loan tradI-
iOnal. The impression is strong that
re government must, to a consider
ble extent, rely upon the banks of