The Birmingham age-herald., 1921-08-17
By HOLLAND

New York, August 16.-(Special. )- Andrew Mills, who is president of one of the largest savings institu- a prevailing tendency among depos- tiers in savings banks to increase their deposits. In the institution of which he is president the deposits increased in July by approximately s100.000. So far in the month of Au- gust increase and withdrawals have been substantially equal.
 The experience of the New York city savings banks, especially since January 1, would, if 1t were unex- plained, lead to the inference that much of the complaint of lack of em- ployment, as well as the reduction in wages, which has been made within the past six months, are not reflected in deposits which wage-earners and stores make in the savings banks.
 Mir Mills has observed that while the deposits have been increasing the number of depositors has not pro- portionately increased. Therefore, it is reasonable to assume that not many new depositors are entered Mpon bank books, but that the old depositors are increasing their de- posts. At first thought this would indicate that the savings of those who work for wages are being in creased, and that the wages Which they receive make this increase pos sib;e. But there is another and bet ter explanation which is made possi- ble by Mir Mills investigations. This expla na ton illustrates to- some ex- tent the business depression which has prevailed.
 In the vicinity of the bank of which MT. Mills is president are many small stores, little retail shops whose customers chiefly are wage earners and clerks who live in the vicinity. These storekeepers shared in the general feeling of depresson They were apprehehsive of complete collapse. The spirit of pessimist pre- vailed among them. and for that req son trey decided to part with their stocks of goods for whatever price they could get. They did sell at wha. are called sacrifice prices their stocks of. goods and received cash for them. But when they. had the cash in hand they were perpleXed. They did not dare use the money Tn replenishing their stocks because they were apprehensive of contin- uation of poor business. Therefore, they placed the money on deposit in the savings banks in which many of then. were already depositors.
 The fact that the increase in de- pcsits of this bank which had taken rlace every month since January l., and which amounted to $100,000%in July. seems now to be checked. Jus- tifes the impression that these small stcrck keepers and others have reachea the limit of their capacity greatly to. increase their deposits
 Is It So Elsewhere
 The record made by this bank is In many respects similar to the record which has been made by other sa~. 'incs banks of New York. Although there is no authoritative statement which refers to the experience of saw inss banks in other parts of the country. nevertheless the reasons are excellent for believing that on the whole they will be able to report rel atively experiences similar to that Of the New York savings banks. These banks are gladly aiding in all efforts which are now under way by which return to industrial and business prosperity can be secured.
 Much is heard of the stagnation m the building trade and in real estate operations. Yet. the savings banks of New York are lending large amounts of money upon mortgage se- curity, receiving per cent for these loans. Mir. Mills hank has lent so,- 900 900 since January upon mort gage security. There are applica- tions for some $2.o00.o00. more and the expert searchers are now occu- pied in investiga tions into the appli- cations So that the bank may know whether loans would be Justified or not.
 Other saving institutions in New York. and some of the insurance com panies are making loans upon mort rage security to such an extent as tos lead to the belief that building and real estate operations are now rcvivinE and may in short time show great activity
 What Ia Done With the Money
 In order to earn enough to pay
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