The Washington herald., 1921-07-23
LOWER DEPOSITS
EXPECTED; RESULT
Ks: OF JOB LOSSES
Savings Accounts Will
Probably Be Used to
Tide Over.
NOT FELT AS YET
Withdrawals of Funds at
Present Laid TO Va
cations.

Failing on IN the Dank uepoSltS
of Washington as a result of the
discharge of large numbers Of Fed
eraT employees is being forecasted
. in banking circles, though no effect
of the discharge has yet been felt
Several savings banks report in
creases in deposits.
It was pointed out that those en-
ployes who were discharged were
notified in most cases quite time
in Advance of the formal action.
The only pay check which they have
yet missed is the one which would
ordinarily be handed them on the
fifteenth of the month. Failure to
deposit the checks on the first Of the
month has not been felt.
The cut in employees will mean that
there is little chance of reaching
again for several years the high
water mark of S169.OoO.0OO. which
was the total at one time of the
deposits of all the banks of the
city. The withdrawal of deposits
from. banks to make deposits in the
postal savings system is also being
considered. as with the government
paying per cent interest on saw
ings deposits closer competition with
the-sayings banks is expected.
Withdrawals have been heavy
lately on account of funds being
employment also has been felt. rs
cash has been taken from the ac-
counts saved for a rainy day to meet
the exigsncies of this temporary sit
uation.-
Many bankers believe that tho cx-
pected decrease in deposits will mean
a strengthening of the money rate.
and that per cent will he charged
In place Of the per cent rate now
prevailing.
Brokers in many sections of the
country are calling for good offer
inEs. their shelves having been
cleaned out by the recent invest
nent demands. While building op-
crations have Increased to some eN.
tent. The method Of financing is
largely that Of bonds in place Of
the single mortgage. The supply
OF mortgage funds seems to be still
inadequate to meet the demand.
The. strength In the mortgage
money field. the high rates offered
and the attractive character of the
first trusts rendered have been cf-
rcctive in securing part Of the
funds. seeking investment other
than in stocks and corporate bonds
Treasury financing through public
subscriptions has been and no doubt
will he responsible for the with
drawaI of millions from the banks
Of the country. These funds have
heretofore been invested in stocks:
some 6f the funds thus invested are
the remnants Of stock investments.
while they very generally represent
the transfer of public interest from
corporate securities to partially tax
free safe government bonds.
Local Market.
Capitol Traction furnished the
Washington Stock Exchange from
the dizziness which has prevailed for
the last few days. Orders to buy
shares of that stock opened the ses-
sion with ten shares at S7ia, fol-
lowed by a 25-share sale at S74
Eighty shares were then sold in 10
to 25-share lots which ran the price
to IS and held it there.
Personal.
Frank Stetson, the trust officer.
and E. P. Wilson. secretary. OF the
National Savings and Trust Com
pany. have motored to the Jersey
Coast, with their families for their
vacations