Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-09-05
BY 1. A. FLEMING.

shrinkage in deposits.
These institutions have lost for va
rious reasons-the removal OF thou
! sands OF government employees, most
| " trying to locate in business life.
and their savings have gone with
them; vacations have habit in July
| and August of drawing on deposits:
while increased rentals, buying or
homes, etc, have cut heavily not only
into savings but into ability to save.
| Thus the loss is not only temporary,
but the possibility to save is reduced,
| and likely to be further curtailed by
the high rents that will prevail with
| October 1.
| Depositors in national banks and
| trust companies as we'll as savings
| banks have helped in larger part than
ever in the floating of the last three
| issues of the Treasury certificates.
4 the depositors taking the bulk of
banks, as formerly.
| This is probably true the country
| over. :.
| Government Needs Cash.
There is small chance of govern
| ment finances, income and outgo De-
| ing equalized so that there will be
4 cessation Of government borrowing
in the near future. Heavy income TAX
| payments are due on the 18th IN
4 slant, but these have been largely
4 anticipated: the adjustment of the
4 claims Of the railroads of the coun-
1 try will probably call Tor very many
millions including the refr 1sncir M NJ
\ these obligations will fall on the
| shoulders Of the Treasury Depart
| ment
Wa,hin<ton Lost S1e.ooo,oO
Retween May and June 80 the
hanks of Washington lost practically
4 SIG. 900, 200,
TENDER IL. the dates OF Calls calls the ma ma
4 ings banks gained $690,969 and the
Il trust companies $1,221,535, a net loss
of but $1,933,000. But there viii De
Il no gain in the same comparison .tnls
h year, as the call will probably be
4 made for the same time or a little
il earlier.
I This year two national banks have
| paid out $1,e00,0O0 for Treasury Ger
| tificates for their customers and the
i trust companies were nara MT III Inc
4 same operation. -
Il Some bankers profess to see the
Il turning of the tide, one or two re-
II porting some increases in deposits.
Il All interviewed claim to have taken
/ care Of their customers In essential
/! lines throughout the entire summer,
vet each admits that it would have
II been possible to have used vast aool-
II tionai sums Of money. Fortunately.
most Of their customers have mad
n on expansion
Building Operations Wait.
II Building operations Of vast inn
II portance and sadly needed wait upon
II easier money conditions. The trust
II companies are equally positive with
|! other institutions that they nave
cared for their customers. but they
xLnk khAx
mortgage funds. The records show
h much money invested in building IN
Il the last year, but more employment
n Of funds awaits easier money. or,
rather. more plentiful funds. Tor the
/ rates are more or less secondary.
Some charges Of boarding are going
the rounds of the press, but SO Tar
1 they have not been substantlated:
There is none of the uncertainty OF
II '96 in the election this presidential
uneasiness among, the foreign-born
population. caused by the turmoil ana
uneasiness incident to labor troubles
and foreign conditions.
II Talk Of Hoafding.
Some suggestion for increasing the
efficiency Of the Postal. Savings Bank
system have been made, with the
| thought that three per cent interest
would induce many deposits-onee
boarded money would be brought out.
Government efficiency in operating
| the railroads." said one banker. does
not suggest efficient and sufficiently
savings system, to meet overhead
charges and the increased interest"
Appropos of boarding money, S. w.
Strauss, president OF the American
Society of Thrift, has this to say:
'The statement recently was made
by a government official that $4,000
900, 900 of the country's cash is being
hidden away in various places or is
being carried around in pockets:
While it is necessary in nation OF
amount of loose cash and currency, it
is likely that considerable portion
of the $3,000.000.000 referred to is
/ concealed in obscure hooks and cor
ners, and thus kept out Of circulation.
'The hiding of money under carpets
| and mattresses and in other places
where. it is supposed to be safe from
burglars and thieves, does not consti-
/ tute constructive thrift. which means
not only saving money, but putting it
when funds are saved and de-
posted with a bank or are invested
prudently we are practicing construc-
tive thrift, and our savings help to
keep the general business Of the
country going. but when our savings
are hidden away they represent just
so much idle capital.
Must Keep 1t In Circulation.
I'm studying thrift we should con-
slider, therefore, not only the function
of saving money, but the equally i'm
lportant one of spending it.
IF all the money that the people
tof this country earned from day to
day were put away where it would
be out Of circulation, the wheels of
Industry would stop Immediately and
business would go to smash; all prog
iress would cease and we would find
Yourselves in the midst of economic
chaos.
Thrift Should he Continuous.
Money must be kept in circulation,
and the thrifty man will see that the
amount he earns is sent through
channels that will be of the greatest
constructive value to himself and to
society.
at is for these reasons that thrift
should be given careful study, for il
can be abused as well as used
Misery habits do not constitute
thrift, nor are avarice and penurious-
spending. Thrift must be practiced
intelligently. We cannot SPEND or in
vest until we have saved, but it is
just as essential that the investing
and spending. be. done prudentIy as
| it is that the saving be done wisely.
ITO be truly thrifty means to be
L progressive. Neither miserliness nor
improvidence have. a placs rim the
practices OF the truly. thrifty man"
Convention Plans.
| The various plans for the enter.