L
1,152,000
Total for year 1915 .
6,4^6,000
39,961,000*
33,505,ooo
Total for year 1916 .
11,938,000
138,000
43,900,000
42,371,000
200,000
97,781,000
Total for year 1917 .
5,683,000
36,6o6,ooof
4,092,000
to,856,ooo
66,824,000
3,133,000
120,928,000
Total for year 1918 .
38.813,000
38,70o,ooo
108,349,000
6,28^,000
179,575,000
Total for year 1919 .
43,541,00011
13,700,0005
9,900,000!
7,400,000**
79,013,000
19,864,000
133,690,000
. Aug. 1914 to Dec. 1919 .
94,671,000
76,429,000
47,992,000
80,556,000
296,557,000
20,574,000
566,631,000
1[ The deposits included 55,109,506 on account of war gratuities to soldiers and sailors.
N.B. During the year ending Dec. 31 1920, 57, 787,499 certificates of a cash value of 44,785,311 were sold, and repayments,
including exchange for War Loans, etc. (excluding interest), amounted to 31,829,879.
and economy. Government securities furnish by far the best and
safest medium for the investment of small sums of money, and we
are glad to notice that steps are to be taken, by means of savings
associations, to continue the policy which had proved so successful
during the war."
Immediately after the Armistice steps were taken to con-
solidate the position of the organization and to render perma-
nent the machinery which had been set up during the previous
three years. The county committees were disbanded, their work
having been delegated to local committees which they had
formed in practically every local area in the country. Steps
were taken to devise a complete representative system through-
out the organization. Adopting the association, or savings club,
as the fundamental unit of the movement, steps were taken to
ensure representation of the associations on the local committees.
The local committees in their turn elected representatives on a
new body called " The National Savings Assembly," which was
to meet twice a year to discuss questions relative to the move-
ment and at one of these meetings to elect representatives on
the National Savings Committee, which, by the authority of the
Government, dropped the word " war " out of its title. At the
same time the personnel of the National Committee was con-
siderably strengthened. In 1921 it formed a powerful body
composed of representatives of Government departments and
corporations and interests connected with thrift, together with
representatives of the savings organizations in London and the
provinces elected ort a wide franchise, so that its continued
influence could not fail to be beneficial to the community.
Savings and Local Government Finance. In the summer of
1920 a step was taken which might well have far-reaching effects
on the relations between local and Imperial finance.
The Finance Act 1920, Section 59, provided that 50% of the
proceeds of the sales of savings certificates could be invested
through the National Debt commissioners in local loans stock
or bonds on the security of the local loans fund. Half the pro-
ceeds of the gross sales after Oct. i 1920, in the area of each local
authority, would be available, if required, for loans to meet
authorized expenditure in connexion with the assisted housing
scheme of that authority. These loans were to be made, irre-
spective of the ratable value of the local authority, by the
Public Works Loan commissioners, on the terms in force for
the time being for ordinary loans to local authorities from the
local loans fund for subsidized housing schemes. In the first
instance, such loans would be restricted to housing purposes,
but it was hoped that, when the existing difficulties with regard
to housing finance had been overcome, the scheme would be
given a more general application and that the system would
become a permanent feature of local finance, bringing to the aid
of local authorities a new source of capital which many of them
had long been seeking. The authorities derive the greater part of
the benefit under the scheme, since, although they receive only
half the proceeds of the .certificates sold, they are not responsible
for finding any of the money required to meet withdrawals.
A critic of the ordinary savings bank in the last century said:
" The savings bank is after all only a slot in the wall, with a
sure grasp, but no tongue to advise it. Having no fructifying
use for the money that comes to it from productive employment
it closes over it like a grave and effectually sterilizes it"; and
Sir E. Brabrook, Chief Registrar of Friendly Societies in 1897,
said he " could look upon ordinary savings banks merely as
infantile efforts in thrift." He regarded " a person who deposited
his money in a savings bank so that it should be kept safe for
him by someone else as very much less worthy of encouragement
than a person who used his savings in some way in cooperation
with other people for his own benefit or the benefit of others."
He " did not look upon the progress of the savings bank with
unalloyed satisfaction, but only as one step to self-help."
The system of linking up National Savings certificates with
local finance becomes, in effect, a national credit bank spread
over the whole country. The credits of the small investor, even
the half-pennies and pennies saved by the school-children, are
rendered, through the machinery of the savings certificates, the
Post Office, the National Debt commissioners, the Treasury,
the local loans fund and the local authorities, available for
investment in social and beneficial enterprise for the good of the
people themselves. Owing to the widespread area from which
the money is raised, short-term borrowing can be used for long-
term loans with the minimum of risk, while saving is stimulated
amongst the very class to whom in the past it has been most
difficult to teach economy and saving. The linking-up of
" saving " with the definite use of the money saved continues
effectually the teaching of the war and inculcates the lessons of
economy, and goes far to meet Sir E. Brabrook's criticism of the
savings bank. The system is certain to stimulate the interest
of the small investors in local finance generally. Not only will
this be a source of financial strength to the local authorities,
but educationally it will be a great advantage, and the active
cooperation of the local authorities and the savings committee
should do much to stimulate habits of thrift and saving.
OTHER COUNTRIES
The American savings movement is dealt with later. As regards
other countries in the war it may be noted that the British National
Committee had its organization in the East for the sale of War
Savings certificates, the China and Japan War Savings Association
having nine centres in China and three in Japan. The Japanese
Government itself during the war sent its representatives to inquire
into the methods of the National Savings Committee, and estab-
lished its own system of National Savings certificates with terms of
three, five and ten years.
In Canada, war savings and thrift stamps were issued by the
Canadian Government.
370
SAVINGS MOVEMENT
The Government of S. Africa after the Armistice placed " Union
Loan Certificates " on sale at every post-office where savings bank
or money order business is transacted. The S. African scheme closely
resembled the British savings scheme. Cards were issued with
spaces for 15 one-shilling stamps. The cards were issued at an initial
price of sixpence. When the card was completed, it could be ex-
changed for a 153. 6d. certificate which is worth l in five years.
The maximum purchasing limit is 387. los. od. for 500 certificates.
The S. African Government also adopted the scheme of associa-
tions in savings clubs on the British model.
STATISTICS. In the preceding tables statistics are given of the
results of the work done under the National Savings Committee.
(T. G. CH.)
UNITED STATES
Upon the declaration of war by the United States in April 1917
it became evident that the nation must practise strict economy
if the huge war-time expenditures were to be successfully
financed and material aid given to the Allies. Not merely in
money, but in consumption (which means money), the resulting
movement for economy among the American people was vigor-
ously taken up. As a first step toward conservation, President
Wilson on May 19 1917 outlined a food control programme and
appointed Herbert Hoover Food Administrator, and Congress
passed the law commonly known as the Lever Act, effective
Aug. 10 1917 " an Act to provide further for the national
security and defence, by encouraging the production and con-
servation of supply and controlling the distribution of food prod-
ucts and fuel." The administration of the Act was under the
direction of a U.S. Food Administrator and a U.S. Fuel Admin-
istrator. The Food Administration summed up its purpose in
the motto: " Food will win the war." The following specific
ends were sought: (i) to save food and eliminate waste; (2) to
distribute food equitably and cheaply; (3) to stimulate pro-
duction; (4) to prevent hoarding; (5) to save transportation;
(6) to provide for the needs of the U.S. army and navy; (7) to
secure the largest possible amount of food for the Allies.
The most vital early need both for America and for the Allies
was the conservation of sugar and wheat. The shipping shortage
was so acute that it was impossible to procure the large surplus of
raw sugar in Java, amounting to nearly 1,000,000 tons. Exports of
sugar from the United States for the year 1917 were more than 17
times the average for the three years preceding the war. In Aug.
1917 the cost of spot sugar reached $9.15 per cwt. seaboard basis,
and the demand was still unfilled. During this month an Interna-
tional Sugar Committee was appointed. Under the operation of
this committee the price of Cuban raw sugar declined to $6.90
by Sept. 14, which was the fixed maximum for the season's crop.
The prices to the consumer were maintained at from 8$ cents to 10
cents per lb., varying with the location. As the difference of one
cent per lb. added to the price of sugar meant an added burden on
American homes of $72,000,000, the importance of the sugar regula-
tions is evident. As the needs of the United States and of the Allies
became more acute, the Licence System governing dealers in food
supplies was put into effect and various regulations adopted which
governed the producer and consumer alike. In order to control the
sugar situation it was announced on May 2 1918 that on and after
May 15 sugar should not be sold for manufacturing purposes either
by refiners, wholesalers or retailers, except upon the presentation
and cancellation of certificates issued by a State Federal Food
Administrator, showing the quantity of sugar sold. Retailers were
restricted from selling sugar to consumers in quantities greater than
2 lb. for city residents and 5 lb. for those residing in the country,
except for home canning, in which cases the dealer was required to
secure certificates for the amount sold. By the operation of this
system and the voluntary restriction of household consumption, a
saving of between 400,000 and 600,000 tons was effected in 1918.
The most serious crisis faced by the Food Administration during
its operations was the wheat shortage of the season 1917-8. In the
United States the crop, following the exceedingly short harvest of
the previous year, was only sufficient to meet normal demands for
home consumption. France and England, which together normally
produce about one-half the wheat they consume, both suffered very
great crop losses, and their total production was considerably less
than one-third their normal consumption. In Jan. 1918 an official
communication was received from Great Britain stating that, unless
America could send the Allies at least 75,000,000 bus. of wheat over
and above what they had exported up to Jan. I, there was grave
fear that the war would be lost because of the lack of food. The
United States Food Administration replied to this advice: " We
will export every grain that the American people save from their
normal consumption. We believe pur people will not fail to meet the
emergency." All manufacturers in the united States using wheat
flour in the production of various foods were placed under licence,
and either strictly limited in their use of wheat to a definite percent-
age of their normal requirements or were denied the use of wheat
entirely. Wheatless days and other measures for wheat conserva-
tion were established. Mills were permitted to grind only a certain
percentage of the amount of wheat milled during a corresponding
period the previous year. Wholesale dealers were prohibited from
purchasing wheat flour in excess of 70% of the amount they had
purchased during a corresponding period of the previous year. In
sales to consumers the retailers were required to sell an equal quan-
tity of substitutes to the purchaser at the time wheat flour was sold.
The pledge-card campaign was started in Oct. 1917, and between
13,000,000 and 14,000,000 women registered in support of food con-
servation by substitution. Between Oct. I 1917 and Aug. I 1918
hotels, restaurants, dining cars and clubs of the country effected a
saving of more than 50,000,000 lb. of flour and wheat products.
Flour-mills were required to raise their percentage of extraction to
74% and to eliminate altogether the sale of patent flours. This re-
sulted in a saving of 13,504,300 bus. of wheat. Bakers were required
to use a certain percentage of substitute flour in all breads, and this
resulted in the saving of 16,830,000 bus. of wheat. These various
measures made it possible for the United States to send abroad
in 1918 approximately 140,000,000 bus. of wheat.
The importance of fats and oils in the diet of a people caused the
Food Administration to lay stress on the conservation of meat
products. Export of fats to neutrals was greatly restricted and the
amount of fats used in bakery products limited. In 1918 1,125,397
short tons of hog products were exported as against 839,000 in the
fiscal year ending June 30 1899, the largest in any previous year. In
March 1918 exports averaged 10,000,000 lb. a day. Normally
the United States exports yearly a little over 10% of its total pork
production. In 1918, under the pressure of war needs, nearly 20%
of a much larger production was exported. In 1918 773,000,000
lb. of beef were exported, or over three and a half times the exports
on the average of the three war years. These supplies were made
available by the conservation of meats formerly wasted, by volun-
teer rationing and by the adoption in many localities of meatless
days and meatless meals.
As the demand on transportation facilities became increasingly
heavy, it was vital to keep the routes by which food passed from the
producer to the consumer as active as possible. The tremendous
increase in the exportation of food and munitions, coupled with the
shortage of ocean tonnage, congested eastern terminals. To remedy
this condition, a regulation was promulgated providing an average
increase in the minimum car-loads of about 50% over those of the
published tariffs of the carriers. Thus the number of cars required
for the distribution of the commodities on the list of non-perishable
groceries was reduced fully 25%. Much material formerly wasted
was salvaged by the Waste Reclamation Service, organized originally
under the War Industries Board and later transferred to the De-
partment of Commerce. One million five hundred thousand tons of
book and writing material were made in 1918 from old paper. The
total value of allwaste material reclaimed during 1918 was approx-
imately $1,500,000,000. In monthly reports as to garbage utiliza-
tion during 1918 it was shown that the redemption plants reclaimed
more than 50,000,000 lb. of garbage grease and 160,000 tons of
fertilizer tankage from garbage.
Several conservation projects were developed in conjunction with
food conservation. The National Emergency Food Garden Corpora-
tion put 1 ,500,000 ac. of city and town land under cultivation in 3,000,-
ooo gardens, resulting in an increase of the food supply to the value
of over $350,000,000 in one year. The School Garden Army,
6,000,000 strong, raised and preserved fruits and vegetables and
also aided in the utilization of wasteproducts. Community canning
kitchens were widely conducted. The Women's Land Army had
during the summer of 1918 units in 20 different states, showing an
enrolment of 10,000 in camps and 5,000 in emergency units. They
were engaged in fruit packing, dairy work, truck gardening and gen-
eral farming. Cash-and-carry plans were encouraged and the limita-
tion of deliveries to one a day to any family or on any one route
was recommended.
The U.S. Fuel Administration began its work in Aug. 1917, with
Dr. Harry A. Garfield as director. The Administration set out to
accomplish: (i) increased production; (2) better distribution;
(3) fair sale prices; (4) the elimination of waste. Small production
was largely due to strikes. The Fuel Administration succeeded in
getting employers and employees into agreement and eliminated
much of this difficulty. In April 1918 a nation-wide plan designed
to insure equitable distribution of coal was put into effect. An
essential feature was the zoning system, by which more than 5,000,-
ooo tons formerly shipped from eastern mines to western territory
adjacent to western mines was saved for the eastern states where the
demand of war industries was greatest. All the price-fixing was done
by territory. Inspectors visited each one of the 250,000 industrial
plants in the United States using large amounts of coal and worked
out with the management systems of conservation. In one week
50,000 tons of coal were thus saved in Pittsburgh alone. Rationing
was put into effect, the supply of coal to non-essential industries
being greatly reduced. It was estimated that this saved over 1,000,-
ooo tons. All industries were held to their minimum needs. Stores
and office buildings were encouraged to take their electric current
SAVINGS MOVEMENT
from central plants. The " skip-stop " system on electric street
railways by which no stops were made at unimportant crossings
resulted in a great saving. Economy was also effected by lightless
nights, which affected window lighting, electric display and street
[llumination. Home instruction was given in the operation of heat-
ing systems and in the use of electricity. For several weeks heatless
Mondays were observed in stores, office buildings and places of
amusement. A saving of 12,700,000 tons of coal for the first half
of the coal year was thus effected.
On March 19 1918 the President approved the legislation entitled
" An Act to save daylight, and to provide standard time for the
United States." The purpose of this legislation was to conserve day-
light and the Act is commonly known as the " Daylight-Saving
Law." It provided for setting the clocks of the nation ahead one
hour at two o'clock on the morning of the last Sunday in March of
each year and for retarding them by one hour at the same time on the
last Sunday in Oct. of each year. By the same piece of legislation the
United States was divided into five standard zones. After the repeal
of this Act in Aug. 1919, several of the states enacted daylight-
saving laws. The operation of the daylight-saving plan caused the
saving in seven months of approximately 1,250,000 tons of coal.
Gasoline-less Sundays were inaugurated in Aug. 1918. A cessation
of Sunday motoring from 75 % to 99 % was effected. This resulted
in an estimated saving of 1,000,000 bar. of gasoline, from which it is
known that 500,000, or 10 shiploads, were sent overseas. The order
governing the use of gasoline was withdrawn on Oct. 20 1918.
Under the provisions of " An Act to authorize the President to
increase the military establishment of the United States," approved
May 18 1917, and later amended, the'President was authorized to
raise and maintain military forces by selective draft " under such
regulations as the President may prescribe not inconsistent with the
terms of this Act." Under this law certain exemptions were made
removing the liability to military service from those whose industrial
occupations were deemed essential to the proper prosecution of the
war. Along similar lines several of the states passed like enactments,
commonly termed " Work or Fight laws," by which those who had
been exempted from military service were forced to accept employ-
ment in essential industries or else join the military or naval service
and thus conserve the man-power of the nation. Non-essential
occupations were listed and because of the simultaneous enactment of
a drastic law against loafing in the state of New York the New York
City Federal Employment Service was overrun with applications.
Over 6,000 were registered July I, and the next day after the order
had been given publicity one bureau registered over 10,000. The
majority were from the non-essential occupations, together with a
small percentage of the idle or vagrant classes.
The Conservation Division of the War Industries Board was
established May 9 1918. Its purpose was to eliminate wasteful or
unessential uses of labour, material, equipment and capital. Its
specific aim was: (i) to secure the maximum reduction in the num-
ber of styles, varieties, sizes, colours or finish of products of the
various industries; (2) to eliminate accessories which used material
for adornment or convenience, but which were not essential; (3)
to substitute materials which were plentiful for those which were
scarce; (4) standardization; (5) reduction of waste; (6) economy in
samples; (7) economy in containers and packing. The length and
swing of men's sack coats and overcoats and the width of facing
were limited, the size of samples reduced and each manufacturer
restricted to not more than 10 models of sack suits for the season.
This resulted in a saving of from 12 to 15% of material. A saving
of 33 % of wool used in the knitting of sweaters was effected by the
reduction in styles and colours. For example, only one shade of
green was used where formerly there were many. Manufacturers of
shoes were restricted to white, black and tan; wasteful features
were eliminated and height limited. As a result one tanner reduced
his line from 8 1 colours and shades to 3, and manufacturers in general
reduced their line by about two-thirds. A schedule issued Sept. 13
1918 to manufacturers of rubber footwear provided for the elimina-
tion of 5,500 styles, with an estimated annual saving of 29,012,600
cartons, 5,245,300 sq. ft. of shipping and storage space, 2,250,272
Ib. of material to be dyed, 74,750 Ib. of starch, 30,380 gal. of varnish,
125,300 Ib. of tissue paper and 49,617 days of labour.
In addition to the efforts of the War Industries Board there were
numerous appeals by Government officials and patriotic organiza-
tions to conserve clothing and shoes. As a result a very great propor-
tion of the people wore garments which in normal times would have
been discarded. Patching and remaking of clothing became popular
practices. Although it is impossible to estimate the saving effected,
it is undoubtedly true that many millions of dollars, which would
ordinarily have gone for the purchase of wearing apparel, were used
to purchase Liberty Bonds and to aid various war philanthropies.
The Pulp and Paper Section of the War Industries Board was
organized June 6 1918 to restrict the use of paper and its products
and thus to save fuel, transportation and labour. On July 5 1918
the following preliminary economies were requested of all newspapers
publishing daily and weekly editions: that they (i) discontinue
acceptance of the return of unsold copies; (2) discontinue the use
of all samples and complimentary copies; (3) discontinue giving
copies to anybody except for office working copies or where required
by statute law in the case of office advertising ; (4) discontinue giving
free copies to advertisers except not more than one copy each for
checking purposes; (5) discontinue arbitrary forcing of copies on
news-dealers; (6) discontinue the buying back of papers at either
wholesale or retail ; (7) discontinue payment of salaries or commis-
sions to agents, dealers or newsboys for the purpose of securing
equivalent of return privileges; (8) discontinue all free exchanges.
On Sept. 20 the following additional regulations went out : no pub-