The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-10
ARMISTICE LOOSENS
boarded SAYINGS
Gains in State Banks Indicate
Much Hidden Money Was
Put on Deposit.
SKINNER ISSUES WARNING
Says Dividend Rate Should Be
Raised Cautiously-Re-
port Is Gratifying.
Special Despatch 10 THE SUI.

ALBANY, March 9-The resources OF
the savings banks of New York State
January totalled s2,2s1,461,9 2s, an
increase of s65, 522,s47 over the resources
reported on January /. 1918. according
to the annual report of George 1. Skin
ner. Superintendent OF Banks. In the
same period the deposits, including divi-
dends credited, increased S55,454.754,
the total of deposits In January being
.o42,o11.10i The Increase in deposits
from the time the armistice was signed
indicates that they consisted largely OF
boarded money.
war conditions and the appeal to the
provident and thrifty OF all classes" says
Supt. Skinner. ITO invest their savings
either In Liberty Bonds or War
Saving Certificates for time more
seriously affected the growth OF saw
ings banks than any other class Of
financial institutions. They have, how
ever, achieved such an envlable reputation
for safety, and their very name Is so
intimately associated with all movements
for the promotion OF thrift and economy
that ultimately they undoubtedly will be
benefited greatly by the various cam
paisns to promote thrift and economy
with war financing.
These mutual institutions were devised
for the purpose OF accommodating small
savings and investing them solely for the
benefit OF the depositors. Their invest
ments are SO strictly limited by law to
high grade securities bearing low rate
of interest that they cannot be profltably
conducted unless a comparatively large
amount of deposits is assured.
Depositors Reap BENEFITS.
"None but tho depositors reap any ben
At from their organization other than a
reasonable compensation for services
rendered. so that there are not the usual
profit making inducements to encourage
individuals to undertake the trouble and
expense of organizing them. Their
special field is 50 fully covered by exist
ing savings banks that no new savings
| bank was organized during the year
nor has any such institution been incor-
porated since 1916.
while there has been a constant gain
| both In the open accounts held by such
institutions. in their resources and in the
| amounts due depositors, the gains since
the entry Of the United States into the
European war have been slight as COM
pared with the gain shown for the year
1916.
The gain in resources and deposits
| however. for the present year is much
greater than for the previous year, and
the increase in deposits occurred almost
entirely during the latter part OF the
year.
The increase in deposits from the time
the armistice was signed has been al
most phenomenal. and the deposits were
made In such a form as to indicate be
yond question that they consisted largely
OF boarded money. Special reports made
to the department for the period from
December rs, 1918. TO January IL. 1919
moreover. showed a net increase in de
] poslts for that period OF over s3s. 400. 900
and I am informed that the increase II
deposits is still continuing at a very re-
| markable rate.