Unclaimed Deposits

One of the peculiar features of the banking business is the occasional leaving of funds in banks by persons who disappear and never claim them. New York banks are said to hold about $5 million of unclaimed de- posits in this way. Under the law, deposits unclaimed for 20 years must be publicly advertised.

The situation is due to several causes. Some depositors apparently die without heirs, or leave no records of their deposits to heirs. In many cases, too, depositors think they have withdrawn their entire deposit when they actually have left something over their withdrawal.

The banks not only have to seek out these philanthropic depositors after 20 years, but also to guard against fake claimants. Recently a large sum was left in a savings bank by one James Sullivan, a sailor. When it was advertised, 142 claimants appeared. Investigation showed that none of them was entitled to the money. These fraudulent claims are often taken to court and the bank is compelled to fight the case out legally to protect the rightful but unknown claimants.