Salt Lake Telegram | 1926-01-22 | Page 18 | Banker Tells How Savings Accounts Block Hard Times

Banker Tells How Ho Savings A counts Blo k Hard Times A xV ANCS BUSTEr REIGN COUNTRIES is L To C l oAH I C f A AU U HUt R s' s i 3 CALLED OUTTO SUPPRESS PAPER IONE WORTHLESS THROW is q o A M E L 1 ag I W. W EPSEY ALBIG NEW YORK Jan 22 The 22 The last bank In the United States has just I closed Its doors The United States treasury has been completely exhausted In a vain attempt to save the national banks Cashiers checks drawn on banks no long longer r existing clearing house certificates covered by the same non-existent non banks s. s pay checks Is Issued issued issued is- is sued by companies whose funds are nothing noth but records in those banks and paper money with no gold or sih stive c to make It worth more than the value of or the silk and paper from which it is made are the only forms of or money In the entire country countr coun coun- tr try The credit of the nation has been exhausted Foreign countries re refuse refuse re- re fuse ruse to make loans Riots Rots of h hungry people unable tp buy food or clothing have become common Soldiers called out to sup suppress press their theIr- riots are unable to do anything Many of or them have mur The few rew who rema reman n loyal are too famished to lift their rifles There is no one left to enforce the law Thousands of or people are dYing from starvation and exposure Hundreds mor more are killed b by other persons persons who attempt by robbery to obtain fo food d. d This Is only a fantastic stor story r. r The c on does exist in hi a minor mi minor minor mi- mi nor degree in many of the countries countries coun- coun tries tres of Europe since the war The I United States saw the of f such conditions in 1893 and a again aln in n 1907 And It might exist here now if the people pc-oPIe had hoarded all their savings instead of opening savin savings s accounts account according to W Yo Espey Albig manager of th the savings de department department department de- de of the American Bankers Bankers' Bankers Bankers' Bankers Bankers' Bank Bank- ers' ers association It could exist provided these savings say sav Ings lags after arter having been hidden away were lost or destroyed Or If a large larSe group of the public through fear fe r or through an an attempt to tosa to- to sa sabotage sa banks or employers refused to liquidate debts with cash The situation while possible under the most most unusual circumstance e is of course improbable bable Und Under r Sour our present economic system it is impossIble impossible impossible im im- im- im possible Albig pointed out HAVE YOU YOUR YOUR- 2047 2042 Savings deposits during the last year were This is equivalent to for each man woman and child in the country The total amount of money in inthe inthe inthe the countr country Including gold silver and paper is an av av- av- av of about per capita This means that If the money in savings deposits had been hoarded all the money in the country would have been exhausted before one one- half haIr of these deposits had been made American people by their trust trustin in the the- bank as an institution to care for their mone money are removing the possibility of such an occurrence occurrence occurrence occur occur- rence said The savings deposIt deposit do de- de- de posit system is growing rapidly rapid I and through that growth Is keeping money In circulation and preventing prevent prevent- ing the danger from tight money Tight money causes cause hoarding and nd hoarding again cause caus caused tight Ugh I money Free circulation does a great Ireat deal to eliminate both an and good times WE TRUST THE BANKS NOW A change in the attitude of the people Is largely responsible for this growth in savings the banker said A jew few few years r ars ago saving was largely the result of fear Possible want danger of or financial panics led the people to store their money away way Fear of banks cau caused ed many of them to hoard It at home With changed banking con conditions and general education however r this fear largely has been removed Savings deposits now are made asah as nit asah nitah ah Investment Money Idney hoarded not only i is il n out Jut ut of circulation but provides no increase During the last year t the e per capita capita cap- cap ita ta savings of the of-the the country have In Increased increased in- in creased 19 The total increase i almost two billion dollars for the year Since 1912 the per savings saving's h hAve ve increased