New Britain herald., 1930-07-17
OUR SAVINGS ACCOUNTS

strongly, on making thelr dedQCtlon5 regarding the state of the nation. upon the increase or decrease of savings bank deposits. They must prove something: but there is no en- tire agreement regarding just what IS proved by savings bank deposits
 IL happens right now, while busi- ness is attempting 10 recover from an era of hesitancy and threatens to go into gear soon again. that savings bank deposits have been in creasing in a considerable number of cities, have marked time in others, and have been reduced in only a few places.
 In one bank in New Britain there ! has been an increase in savings iE another the situation has been most satisfactory in that there has been no recession.
 Yet it is undenia ble that some Of our workers must have been forced 10 rely upon their savings 10 tide them over now and then. That. in- deed. is what savings are fora nest egg for the rainy days.
 When the rainy days arrive ana savings deposits do not materially lessen, however, it pays 10 be an economist and try to explain the sit uation, especially in that it has not i been the first time for such d phenomenon 10 occur during an in- dustrial set back.
 There is reason to believe, in the first plane that during periods Of 'hcsitancy a good many people leave money in savings banks wren they would otherwise be of an en- terprising disposition and invest it in one thing or another. During the building boom several years ago, for instance, large numbers of savings bank depositors withdrew substan- tial funds in order to make down payments upon real estate. Bank of ticials are well aware that when a dapostor buys a house or builds a house. one of the first things that happens IS to 20 to the savings bank and start the enterprise with sub straction Of the funds there deposit cd. When this IS done often enough. as was the case during the building boom, it has quite an effect at the savings banks.
 Then there are those who buy automobile. These usually require d down payment of fair proportions and series Of following payments Both affect the savings bank ir many instances. Just at present the automobile industry is marking time to put it mildly. which must near that less money is being withdraw from savings banks to make dowr payments. There can be little doub' that the automotive industry would like to see 2 million or so of citizens wade into their savings accounts anc buy new cars; but the operation while stimulating industry" would subtract substantial sums from say. ings deposits.
 During the boom which led up tc the stock crash there was another factor that affected savings deposits This was the factor Of speculation Fortunately the savings banks IT New England did not suffer from depositors withdrawing money witt which 10 gamble in the stock marke as much as happened in some othe' sections Of the country, but thu practice was widespread even in thi; frugal tier of states. It was nothing unusual for depositors to subtract { substantial part of their savings anc go directly from the bank to { brokers office, there to double thu money in hurry Or perhaps not Such withdrawals last year, for tn, first time in 20 years, resulted In { reduction in savings deposits II every section of the country excep in New England, the only section 0 the country where deposits remained as high as the year before.
 Maintenance Of savings bank de posits at an even level at this tim' therefore indicates that the rant and file is tending to be cautious and that it is holding to it's none! to await better times. The chief to' of savings deposits is not the neet