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60-DAY CLAUSE AIDS MONEY HERE Savings Banks Adopt the Richards Plan in Meeting Depositors. MANY WISH TO PAY IN FULL ON DEMAND Two East Side Institutions Taken Over by State-Situation Well in Hand. The enforcement yesterday by all the savings banks of the city of the banking law clause requiring sixty days' notice from depositors before withdrawals of funds would be allowed had its contributing effect toward relieving the strain of the money situation as a result of the European war. The action was taken by the boards of the various banks at the suggestion of Eugene Lamb Richards, State Superintendent of Banks. The officials of the banks who are members of the New York Savings Bank Association met at the office of the State Superintendent and adopted a resolution requiring the enforcement of the sixty-day clause. Mr. Richards extended his request to all savings banks in the state, as well as private banks, which have been under the control of the State Banking Department since August 1. He sent the following letter to the presidents of all savings banks outside the city: "In view of the European situation and for the purpose of conserving currency for our domestic needs, request that forthwith a resolution be adopted by your board of directors requiring a notice of sixty days before repaying deposits, and in otherwise complying with subdivision 1, Section 248 of the banking law. "The giving of the notice was not to help any institution or institutions," he said, "but was caused solely by the unique and extraordinary conditions prevailing in Europe. The course adopted is the only available method of preventing large withdrawals of currency from the banks and from the country." Run on Banks Averted. The adoption of the sixty-day clause had the immediate effect of shutting off the abnormal withdrawals which some of the savings banks experienced in the last few days. There was no disorder or early runs prior to the posting of the sixty-day clause notice, at any of the larger banks. Small runs were experienced at several East Side private banks. They were met with a high degree of confidence by the private bankers and depositors were paid promptly on demand in most cases. Following a report from state bank examiners, State Superintendent Richards took charge of the affairs of two East Side private banks, that controlled by M. & L. Jarmulowsky, at 165 East Broadway and that of Adolph Mandel, at 155 Rivington st. Both of these institutions had experienced small runs during the day. Superintendent Rich. ards announced that he would liquidate the affairs of both banks. In adopting the sixty-day clause it was decided to permit the banks to pay out small amounts in cases of emergeney. Most of the banks limited this amount to $50, but some paid $100, and one or two paid depositors wishing to withdraw in full. The Metropolitan, the Dry Dock, the Bowery and several other of the larger banks paid out considerable sums to depositors early in the day prior to posting the sixty-day notice as a result of which some de positors who came later were disgruntled over getting the small amounts on their deposits. A compar atively small number of notices of withdrawal of accounts at the end of sixty days were served by depositors at any of the savings banks. The Seaman's Bank for Savings, at 74 Wall st., which is not a member of the New York Savings Bank Associa tion, enforced the sixty-day clause at the request of the State Superinten dent Officials of the bank said yes terday that they had not intended to take advantage of the clause, but had done so when personally requested by Superintendent Richards. About five hundred depositors called at the bank during the day for their savings, and those who were not satisfied with the explanation of the sixty-day clause by the officials were paid in full. Only thirty nine notices of withdrawals of accounts were left by depositors at this bank. Money Ready for Soldiers. Natives of the European countries at war who had received official notice for service as reserves were paid in full in most instances where they presented such notices to the bank officials. While there is little prospect of these "reserves" getting back to their native land on any ship at the present time, it was explained that they had to report to their consuls every day and be prepared for the first possible sailing. In the Williamsburg section there were runs on two banks, one of which, at the bank of A. L. Kass, 87 Graham av. required the calling of the reserves from the Stagg st. station to preserve order. Depositors were permitted to withdraw from $5 to $10 each. A small run started at the illiamsburg branch of the State Bank, but soon simmered out when William Walton, the manager, announced that all depositors could draw out their full amounts if desired. SO they There are 140 savings banks in New York State. Their financial statements to the State Banking Department on January showed 3,143,044 depositors, with $1,741,697,462 to their credit. The total resources were given as $1,926,334,331. There are ninety private banks, whose figures are not obtainable owing to the short period that these institutions have been under the supervision of the State Banking Department. State Superintendent Richards sent out notice to all private bankers doing business under the laws of the State Banking Department that from now until further notice they will have to close their banks at 3 p. m. It had been the practice of many of the small private banks to keep open during the evening and in some instances late at night. All private banks that failed to file their application to
