Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-17
BARGAIN HUNTERS
COMB STOCK LIST
New Type of investor Ap-
pears After Recent Break
in Market.
BY J. C. ROYLE.

A new type of investor is being de-
veloped as a result of modern financial
trends, coupled with recent incidents in
the securities markets. The bargain
hunter investor is studying the position
of securities closely and is making pur-
chases. not for speculation, but on
basis of values as he sees them.
Since Midnovember, or, roughly,
since the time the stock market struck
its lowest levels, there has been an ex-
ceedingly large withdrawal of funds
from savings banks, according to Ogden
l.. Mills, UnderSecretary of the Treas
ury. These Withdrawals, it is indicated,
were devoted to investment in stocks
which were at levels which represented
bargain" purchases. Mr.. Mills declares
that it is impossible to tell just how
much of the money withdrawn went for
such purchases, but it has been evident
that the amount of genuine investment,
especially the amount placed in small
lots, has been much heavier than any
one anticipated.
Margin Buying Scarce.
1t seems evident that much of the
total withdrawn from savings banks
has gone into stocks and bonds. This
has not been buying on margin. 1t
means that those with nest egg have
put that egg into safety deposit box
in the shape of stocks rather than into
savings accounts. The bargain appeal
2 evidently has been strong. These in
Vestors know what their money will
bring in the savings institutions. They
have been convinced that the pros
perity of America will make their stock
holdings in sound companies bought
at low prices equally safe and perhaps
much more profitable.
This must not be taken to mean that
the savings banks have passed out OF
the picture, or that their position has
been in the slightest degree menaced
They are, and will continue to be, the
mainstay of thrift and saving. They
will have custody of the funds of the
new investors. If they do not hold all
of those funds for so long time as
in the past, they will have far more
accounts than in the past. Americans
are becoming a banking people, and
more of our inhabitants have accounts
today than those Of any other country
in the world at any time.
The latest figures available show that
the national banks had time deposits on
hand of S8,301, ISL 900. These included
postal savings accounts, time certln-
Gates of deposit and deposits evidenced
by savings pass books. The latter to-
tailed S5,978, 100000 and was made up
on SIS, 430,964 accounts. These showed
reduction OF 81 ,UUUUUU, DIS COInpdICu
with the last bank call reports, but were
$37, 701 900 more than at this time last
year.
Thrift Not Disappearing.
When the huge totals of the mutual
savings banks are taken into consider
alton, it will be plain that thrift is not
diving out and that the savings banks
are a prime factor in American imam
cial life.
In addition, it is shown plainly that
large sums have been moved from the
savings account into those of the build
ing and loan associations which are
under State banking regulation ana
which have the appeal to the desire TO
own a home which exists among many
citizens. The start of the building ana
loan accounts, however, is frequently
found in the savings bank account,
one factor which can be counted on
to maintain the position OF the savings
institutions is the fact that the OLD
established institutions are no longer SO
identified nor so conservative that they
will not hustle for new business ana
new accounts. This trend has been en-
phasized by the opening OF brancn
banks which keep in close touch with
neighborhood and prospective depositorS'
Copyright, 1920