Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-06
HUGE GAINS MADE
IN SAVINGS FUNDS
Number of DepoSitors Also
Increased During Year, Says
A. B. A. Official Report.

deposits In banks and trust companies
Of continental United States increased
more than quarter of billion dollars
in the year closing June 80, 1880. or
1851, 10000, reaching the highest point
ever recorded according to statements
received by the savings bank division.
American Bankers Association, and
made public here today. This contrasts
with loss in savings of $195, 305 900
reported by the division for the similar
period a year earlier, which was in the
midst of boom times. Total savings now
stand at nearly $28,485, 000, 900, this
years report shows.
This mark, topping, as it does, the
highest figures previously established,
isolates the recession for the year end
ing June %. 1929, as being the only
one in time deposits since records have
been kept by the division, period run
ming back TO 1870" declares w. Espey
Albig, deputy manager of the associa-
ton, in charge of the savings division.
1T also further demonstrates that the
recession of last year was due to a
cause, or causes, other than lack of
employment or of earnings, for during
that year employment was at very high
tide, and enormous sums were distrib-
uted in dividends.
This year industry has operated be-
low normal. Pay rolls have been re-
duced, wages also in some places. I'm
employment has been rife in practically
all parts of the United States, being
greatest. of course, in the industrial
centers. AS result. the volume of
money available for deposit in savings
is much lower than during the last year
or two
Number Of DepositOrs Gains.
1.-The total number of depositors re-
ported is SO, $780, IT'S, gain of 5,048 over
last year. 1t is only because of the great
increase in the number OF depositors in
few States that the total for the
United States shows a gain. In most
States q loss is recorded. This is true
not only of savings depositors, but also
Of savings deposits
It is impossible to name all factors
which increase or decrease savings de-
posted in banks, Mr.. Albig says, but
suggests that lack of faith in the sta
bility of banks, reduction of the inter-
est rate, competition by outside agen-
cies offering higher return and other
causes may operate to lower depos-
its, even though prosperity is pretty
generally diffused.
when conditions in industry and
employment are not satisfactory" he
adds, there is a tendency on the part
y
from wages to go to extreme lengths in
safeguarding themselves financially.
They deposit more of their income in
the savings departments of banks. If
the depression is long -continued, these
deposits are slowly but gradually with
drawn"
New Attitude Toward Saving.
When the savings record was taken
n h0 in nRhipV-
ing any material amount of money
through the slow process of depositing
savings in a bank was all but discred-
tied, assertions were widely made that
the industrial recessions as of former
times had gone never to return, the
lure of profits to be made in stocks at
tracted many, while others "smothered
their fears of the vagaries of stock
prices by pinning their faith to the
name investment trust, since to them
that connected security Cf principal and
stability of yield" Withdrawals from
savings up to about the middle of De-
cember, 1929, were enormous, he says,
and points out that while it is not pos
Sible to estimate savings in banks reg
istered at the low point, the gain since
that time is more notable than is in
dicated by the statement that the in
crease in savings from June, 1929, to
June. 1880. is $267, 1000, 900.
When the collapse in securities oc-
CURED innate conservative forces caused
many people to turn again to the time
tried institutions" he says. The re-
port in detail gives the following re-
gional analysis:
New England States.
Four of the New England States
Maine, Massachusetts, Rhode Island
and Connecticut--show a gain in de-
posts over last year and three of
them-Maine, Rhode Island and Con-
necticut-show a gain in depositors, al
though the district as whole shows a
considerable loss in savings depositors.
The loss in savings deposits in one
State, as well as the loss of depositors,
is explained in part by local condi-
tons having nothing to do with in
dustry in that section. The net loss in