HOARDING OF MONEY

Poverty Bay Herald, Volume LV, Issue 17639, 1 December 1931, Page 9

HOARDING OF MONEY

PROBLEM IN UNITED STATES The proverbial stocking is finding! its nay into many American homes, although. to he strictly accurate, it is a modern stocking in the shape of a safety deposit box held by a bank. But the result is the same, inasmuch, as money is being hoarded, ‘says the New York correspondent of the Daily Mail. flow much jobless money is in cold storage is not not known, but one estimate places the total as high as £2130.000,000. Safety boxes at a premium and one leading Now York broker said that he doubted if you could rent one in New York to-day. It is explained that Americans are not hoarding gold, nor are they preparing to turn their dollar bills into gold. They have a feeling that they will be safer with the money in boxes, which they- can withdraw at any time they choose, even (hough their bank shuts down. More money is also going into savings hanks. Air. William Green, president of the American Federation of I at’m-. said recently: ‘‘The strange thing is that, despite unemployment, savings hanks are showing an increase in deposits Naturally the conclusion is that depositors, instead of spending their monev. or having goods, are putting it into savings banks. “Volumes of sales are so small that- we know money is being boarded. Those who could are not spending.” This warning was also reinforced by Mr. T. B. Macaulay, president of tho Sun Tefe Assurance Co. On n American savings bank publielv asked its depositors to withdraw their mo» 'v and release it as an .aid to unemnlovment. and Mr. Macaulay sug,rested tint no depositor should keep more than six months’ salary tied up.

Manx people- finding their stocks at a low ebb, are buying them outright and locking up their certificates in safety boxes