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Although It was the general concensus of opinion among the presidents at yesterday's meeting that such a step would be advisable, in view of the present condition of the money market and the heavy drain which had been made by depositors during the last few weeks, there is to be no compulsion about it. and the only action taken was to refer the matter to the officers of each bank with the recommendation that the notices be posted. According to Comptroller Dayid. Ledwith, of the Emigrant Savings Bank, this is not a confession of weakness on the part of any of the institutions in the cities named, but is, on the contrary. simply a step to protect depositors. as well as the banks themselves, from inconvenience. The rule exists in nearly all savings institutions that when a depositor wishes to withdraw his account he must give thirty days' notice, if the amount is under $300, and sixty days' notice if the amount exceeds that figure. Usually, however, the rule is not enforced. "It is not generally known, perhaps," said Mr. Ledwith, "that the drain upon the savings banks in this city has been so heavy during the past month, but since July 1 more than $10,000,000 has been drawn out by depositors. "This loss of ready cash may inconvenience many institutions, and while they have an aoundance of assets In the form of United States bonds and other equally good securities. they could not even sell these to get currency in the present state of the money market. "In fact, it Is a physical Impossibility to get the notes and currency which are needed. There are two classes of depositors who are drawing out their money. One of those consists of the people who are affected by the prevailing distrust and lack of confidence. While they are not really alarmed about the situation or believe that their bank is in any danger, they like to have their money in their pockets and feel It there. "They haven t nerve or backbone enough to put it into any thing else, and so the money is actua ly withdrawn from circulation. This has done much to aggravate the situation and create an artificial scarcity of money, for I think the people of this class are in the great majority. The other class," continued Mr. Ledwith, "consists of those who have laid up a snug little sum, and now. when they see a chance of investing It at a good profit in some of the Wall street bargains, have drawn it out, gone down into the street, made their purchases and taken their securities away with them. "This money, of course, goes right into circulation. but there are comparatively few who have the nerve to do this. The stories that the savings banks are hoarding money are untrue as a general rule. We send all the surplus cash to our discount bank, where it is paid out over the counter. and thus keep it in circulation as much as possible. "I do not think the posting of notices by the savings banks will have the effect of frightening depositors On the contrary, it ought to make them more confident, and it should certainly result in checking the unnecessary drain on = resources of the banks by making It more difficult for the people to withdraw their funds." How many of the savings banks would decide to require their depositors to give notice Mr. Ledwith could not say. He stated very positively. however, that none of the banks would take any action in the matter till next week. There was a long line of depositors in front of the paying teller's desk at the Emigrant Savings Bank this morning withdrawing their money. A few were making deposits. This is only the usual sight." said Mr. Ledwith. "and, in fact, the number is smaller than it has been in some days. We are paying them to-day just as usual, and every depositor who comes it. here can get all his money if he wants We shall continue to do this until our Board of Directors has met and decided what action shall be taken in regard to requiring notice. With more than 73,000 depositors the number you see here is insignificant. At the East River Savings Institution. 3 Chambers street, there were very few depositors drawing money-not more than the usual number, it was said. President Slocum told an "Evening World" reporter that he had been out of town and had not heard of the meet ing of the Presidents, excepting what he had seen in the newspapers. "The action taken, I must confess, is a surprise to me, for I do not see that It is necessary. It certainly is not in the case of this bank "However, I shall talk with the officers of some of the other savings banks, and ascertain what the general drift of opinion is, and our action will be determined in a large measure by what the other banks do. "If all the banks should decide to follow out the recommendations of the presidents I think it would result in a great many depositors giving notice of their intention to withdraw their accounts. although there is no telling what change might take place in the monetary situation which would restore
