Show Business Bulnes Today Today Today- li N. N Y Ban Banker er Smoke Smokes Out Hidden Funds Ij M MARLOW ARLOW and andi i LLIAM f AM 1 riNKERTON EW w f YORK May 22 Wide A letter from a banker I Io g o results hd lid there hangs a tale because o has two billion dollars sock under a mattress hoard hoard- it even en though there is more loose in m this country now at any time in its history 1 e safe deposit deposit box box renters of the East cast New York savings bank ived from the president Edd Ed- Ed Jr d E. E Richards a letter which 1 urged ed them to I t all their hoarded cash out oute cf e boxes and convert it into 1 and stamps this war wu bonds so try could defeat its enemies insure continuance of the Ai American way of life Ue is was Wa 1 m In I keeping with the ed States treasury's theory on be ie e same subject ck to Bank Boarders flocked to the bank c ed cd d their boxes took out their Ii and and bought war bonds or ps V With it or deposited it in 3 gs ac so the bank bankd co d a ini invest est the money in gov govern govern- ern- ern securities he e result April deposits in thAt at bank jumped over March darch figures Combining that crease ease with the amount of war warb wards b ds and stamps sold the bank month m Cd ou almost 1500 oo more than in April 1941 But ut at even so Of the more than now in circUlations circulation is s country more than double th volume of the thc about 2 is hoarded or hidden aw y X le lie government doesn't have a ae apr ase pr se e way of knowing where it itis is r ir who has it ankers sa say these things have havea a tal ital bearing on the amount of oey in circulation of payrolls and rede re- re rade de with a larger proportion o ie e national income going to toI toJo I Jo ir inCome r-inCome income groups an of the population and ande m more re e firms pa paying mg salaries jn cash b ause of ser service serice ice charges imposed b banks anks on checks ven yen ven sales taxes and the lowly p all 11 machines get part of the cr it for the spread of pennies a nickels across oss the land loney toney oney in circulation is the name namen n in n to all currency outside the theand tr ti and the federal reserve reserves ks s whether it is held inactive or cr Is s actually circulating hoarders either wish to hold tHeir money or transact their busing busi busi- ng in a vay way that leaves no recin rec- rec or or in a bank according to a fede fed- fed e C reserve reser bulletin which says 2 now out of sight sights s to be m in denominations c 50 50 or larger that about one t to one half one half of the hoarded y is apparently in the hands c the bulletin says of the hoarding of United St States s currency in m recent years appears to ha have hae e been by nationals o countries either for re ret retention retention re- re t in the United States or for tr transfer abroad Foreign hoarding has proba- proba bl amounted to between 1000 00 and 1 Hoarding Started r though there has been some Domestic domestic hoarding in the past cou- cou pT of years most of the domestic hoards boards were built up before the 1 Banking baking b king holiday of March 1933 i The he bulletin believes it likely that tt many depositors who had been hoarding at the time of the ba bank bk k holiday m in order to avoid losses through bank hank failures continued continued con con- to retain most of their h because there was no nos s ing ng incentive for them to red rethe re- re d the currency in banks 0 interest was paid on ded demand de- de mand Inand d deposits and very low rates on cime time deposits Also there was wasa a rowing reluctance on the part o anks to accept large time deits dep de- de p pits its recent inquiry by the federal reserve regional banks to a anum num- num of member banks brought re- re indicating domestic hoarding l has js increased since 1910 1940 while nany commercial banks reported Rome S e of their depositors had been beening boarding ing money because of gene gen e a in connection the war |