MONEY IN BANKS

Evening Post, Volume CVIII, Issue 120, 16 November 1929, Page 20

MONEY IN BANKS

GREAT SUMS FORGOTTEN

Many thousands of dollars are lying in the vaults of New York banks forgotten by their owners, it has just become known following the • publication in the local Press of partial lists of unclaimed accounts, states the "Christian Science Monitor." ■ ■ ; . Thousands of persons who carefully deposit their money in New York City banks neglect to return.and claim their funds, even though, in some instances the original amount has doubled by the accumulation of compound interest. Many theories have been advanced to explain why amounts of 100 dollars, 50 dollars, or even 10 dollars sWmld' bo left in a bank until finally, at the end of 20 years, the account becomes dormant and ceases to draw interest. And by that time the deposit has more than doubled its original figure, for money at 4 per cent., compounded annually, doubles itself in 17 years. ■; These unclaimed accounts would be even more numerous, bank officials say, if financial institutions .did not maW eyery effort to discourage them. To a bank the dormant account is an unnecessary trouble. ..The moneycannot be used and records of the "accounts must be ' transferred to separate books with' a special .''•' ■ department to take charge of them;-Banks, therefore, areattempting to reduce :th'e "lists of unclaimed., accoiiiits '".to; :ttie! smallest possible number. Many "of. the'larger, in-, stitutions have organised departments especially to. track ' down the holders of these accounts,: even before they become dormant. When information regarding ail account-fails to be received a certain period, Tepresenta--'tiye's■"■ are:: sent. i t6;...tH&"'.la'st ''given address. If the '^depositor" iii£j,s mo veij- without leaving a. forwarding' address,..inquiries, are made of the .-'..grocerj butcher, the neighbours,; and the telephone: and gas companies. Usually the: ; address is found." - ■ • '■' Frequently---now,- when- w'' depositor's account "is low, the- bank asks him' to withdraw it,' and' open a ftßW.account at a later dat6,rath'er than leave a. small amount ..on deposit. Some banks charge a foo. whdn.an.,account runs below.a stipulated amount, so. that small amounts nro";automatically,.;absorbed whenvallowcd to stand ovet•a.lorig.period. :■■ : Many efforts havd been made -to enact legislation providing,' that unclaimed bank deposits may be used for; some .public ..work.!, Inasnruch,: as tho funds .rightfully .belong ,to':thp. depositors, howoVer r . or;their hoirsj these ,ef-, forts are not considered likely to- meet with success. A. complete list of; names, former :addre'ss, and the amounts on deposit- in these unclaimed accounts is kept at.tlie.'Statp-:Banking-Department at Albany. ■": '■•;■ ':■ '■ ' '••■ ■