Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-01

The American people could live quite
q while on their savings If employment
and income ceased completely, accord
ing to figures revealed by an examina-
ton of savings accounts In the United
States. Americans have o worldwide
reputation for spending and they do
part with their funds fairly readily, yet
1t appears about half Of them have
something laid by for periods Of de-
preston, the proverbial rainy day.
Fifty-two million savings accounts are
being kept in the United States today,
which means that nearly half Of the
people have something put by IN the
form of cash, readily available. The
population of the United States Is more
than twice $4,000, 900, but 1t must be
remembered that population figures In
clude one-day-old infants, the palSied
old, persons in jail and in lunatic
asylums. So If only the active persons,
moving around and making demands
on sources Of supply, are to be con-
sidered, it is safe to say that at least
half save something from the movies
and the soda fountain.
It Is equally true that q good many
Of these savings accounts are In the
names Of very young persons. Thrifty
parents not 1nfrequently open savings
accounts for their children q few min
utes after they are born; some In an
ticipation Of such an event. And chill
dren themselves have been induced to
run counter to their natural instincts
and hoard pennies in cast-iron pigs,
against the day when they viii md
enough accumulated to take 1t to q real
or discover that the iron pig has been
rified. But, however 1t Is figured, o.
600 900 savings accounts are q good
many. The iron pig accounts are not
listed In these statistics nor are hoards
put away in socks, mattresses, In rat
infested walls, or beneath trap doors
All such Accommodations are In addition.
The money known TO be on savings
accounts at banks amounted In 1923 70
$28, $50 900 900. Without touching cur
rent earnings, selling property other
than cash or mortgaging future earn
ings, the American people could pay
off the entire national debt In one
operation out Of savings and have
substantial neSt-egg left over.
The rate Of savings has bsen &C.
celebrating. In 1911 the American
Bankers' Association reported savings
deposits Of $7,o63, 1000 carried In IT,
400 600 accounts. The jump from 1911
to 1929 from about 100000 TO $2o,-
600 900 Ia amount and from 100000
to 100000 In number Of accounts
shows an increase in savings far greater
than the increase In population during
the same period. And In that interval
the cost Of living reached the highest
point in history and the temptations TO
spend money were multiplied. All the
money, practically, spent for automo-
biles and every cent expended for radios
has been put out by the American peo-
pie within that same period. Styles
have changed, too, in lots Of things,
yet the savings have gone up phenom-
enally.
Mutual Savings Banks Lead.
An especially interesting aspect Of
the situation Is that there Is more
money In mutual savings banks which
pay no proflt to bank stockholders, but
are, in effect, financial co-operatives.
than In any one type OF commercial
bank which invests depositors' money
and pays dividends to owners OF bank
stock.
The distribution Is Is follows, accord
ing to new figures reported by the
American Bankers Association:
National banks, chartered by the Fed.
eral Government, $7,S89, 900 900; State
banks, chartered by various States, 81.
AL, 100000; trust companies, $4,022,-
000, 900; private banks, $4,000, 900. and
mutual savings banks, $8,903 ,000, 900.
The amount OF the average account
In mutual savings banks is greater than
the average In the commercial banks.
The mutual average Is $3.50 compared
with $544 for commercial banks.