Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-12-13
SAVINGS DEPOSITS
INCREASE BILLION
Development of New Chan
neIs for Inflow of Funds
Stressed by Banks.
BY EDW ARD c. STONE.

BY EDWARD c. STONE.
More than $40, 600, 600. 900 in saving.
was on deposit in the banks and trus
companies of the United States June
80. 1927. an increase of $l,36S.094, 00'
over the same date last year, the say
ines bank division, American Bank
ers' Association, reports.
This gain in deposited savings o
itself is not impressive" in the opin
ion expressed by w. Espey Albg
manager of the division. who say
that il is less than in previous year:
and consists mostly OF accumulateC
interest instead Of new money. liz
| added that this does not indicate 4
lcSscning in thrift. but simply a di
| version of savings to other forms OF
investment outside interest bearing
bank deposits. His statement says:
| IF the amount of savings as OF
June 80, 1926. is taken as q basis anC
! interest thereon computed at 81 pei
cent, the interest added to the prim
cipal viii amount TO $3.50, $50 600
which would show the addition of only
| S530,3i3.000 of new money necessary
/ TO reach the total S26, $50 ,9O2 600 as nj
> ultG ON, H. nc SiGIltSL increase
! in savings deposits in any one yeai
! since the war was for the year ending
. June 30. 1920, when the gain over the
/ previous year was S2,213 ,66S 600
I There has been a gradual recession
! each year from that figure. This ap
. parent diminution of savings has leo
! 10 statements that Americans are less
careful! Of income management than
! before.
Savings Develop New Channels.
1T is impossible OF belief that the
! increased number of savings deposi.
J tors simply are depositors in name
/ only and add little to the sum total
/ Of savings. Possibly more attention
! has been given by banks to encourage
, the opening of new savings accounts
| Than 10 add to the amount of money
! deposited IN the savings accounts.
/ However that may be, every indca-
! ton points to the fact that banks are
/ being used more and more simply as
reservoirs for the deposit of funds
until such time as depositors amass
! sufficient to enable them to purcha Sc
| investments.
Reports received from individual
banks as to the activity of customers
accounts. the increase in life ins,lr-
ance. the sales of stock in corporations
/ TO employees. the great DEVELOPMENT of
home ownership and of popular own.
efship of real estate mortgage bonds
| reveals the fact that saving is not
slackening but simply developing new
channels. This belief is fostered by
the fact that the number of savings
| depositors is increasing at a more
RAPID rate than the amount of de.
| posits."
Chevy Chase Bank Dividend.
The directors of the Chevy Chase
| Savings Bank met last evening and
| declared the regular semi-annual diyi.
dend OF per cent. payable January l
TO stockholders of record on Decem.
Der 20.
The president, DIR. Frederic E. Far.
rlngton, reported a most prosperous
year. Inc directors in turn took the
I opportunity to express their gratifica
ton to the board over the results ac.
complished.
The bank, which was started in
1871. has shown remarkable growth
On November Is, 1927, it had assets
OF S725,0O0, While deposits at present
are about S930.000. The wear now
closing is the first in the new banl;
hullalng. which is one of the fines
OF It's size and appointments to be-
! found anywhere in the country.
Tennis Star Enters Local Finance.
Thomas J. AIangan. jr., who has
been connected with the Chicago of
nee OF Halsey, Stuart & Co. for sew
| eral months, has returned to Wash
! ington and will represent that finan
clal house in this city. Mr.. Mangan
has been prominently identified with
athletic interests in the District for
| several years and has captured a mum
Der OF cups being one of the finest
tennis players in the Middle Atlantic
States.
First Trading i'm New Stock.
First trading in the newly listed
| Washington Convention Hall On nre
TERED stock on the Washington FIX
change took place today when 2C
shares changed hands at 90. Other
issues were firm. Potomac Electric
rover 512 per cent preferred came on,
at lO6A, Mergenthaler registered 1O7
sanitary Grocery 105, Barber & Ross
common 3412. Commercial Nationa
Co. preferred 105 and National Mort
gage d Investment preferred 5%.
| SIX shares of Commercial Nationa
Bank stock sold at 265. In the bono
division, Washington Gas IS moved
at 1O4A, 104B and los. Gas 6s, Series
b, brought 107 and Railway & sElec,rie
| As came out at 81.
L. ). Issue Heavily Oversubscribed
Secretary Mellon reports that tht
reported subscriptions for the Decem
Der 10 Treasury issue, which wa.
| S250,000, 900, totalled $I,20O,O00, O0(
! when the books were closed. F'ina
reports from the Federal Reserv,
Banks are expected to swell thi.
amount. Allotments will be made a.
soon as these statements are received
Thompson EXcapes in Wreck.
Eugene E. Thompson of Crane Par
IRISH & Co, was aboard the train which
was derailed and wrecked near Pitts
burgh late Sunday night. Mr.. Thomp
son was in the observation car on thu
rear and aside from being bumped
about and bruised, escaped serious in
jury. The car he was in did not leav,
the rails. The local financier was OF
his way to Detroit.
Heard i'm Financial District.
Local bankers are deeply intereste
in the move Of the National City Ban
/ TO take its stock off the New York E1
change. This action appears niue
more difficult than had been generall
supposed.
Arthur Foraker, manager of tn
Washington office of Eastman. Di
Ion & Co, is on business trip to Cir
cinnati.
Thomas w. Brahany was given
surprise birthday party at the Colun
bia Country Club last evening, bein
rendered a dinner
President Maurice d. Rosenberg Q
! liz Ilnnl- % Comm nrcc 4. SAVINGS /