The midland journal. (Rising Sun, Md.) 1885-1947, 1930-02-21
BANKERS REPORT
DROP IN SAVINGS
Lure of Stock Market Partly to
Blame, but Slackened SpecuIa-
ton Expected to Bring Return
to Thrift.

The first recession in the naton's
savings account in banks in the twen-
ty years during which records in this
field have been kept by the American
Bankers Association was disclosed for
last year in the recent annual compila-
ton prepared by its Saving Bank
Division. The shrinkage amounted to
over $195,000,000, on the basis of fig
ures for the year ending June 20, 1929,
whereas year earlier the reported in
crease was over $2.3O0.OO0.0 1000. the
largest ever recorded. The number
of savings depositors also decreased
during the year covered by more than
100000 accounts. The lure of the
stock market and affiliated activities
are cited as part of the explanation
for these changes
The associations statement says
that savings deposits in banks and
trust companies of continental United
States on June 20. 1929. stood at $685.
217,656,OO0. The recession in savings.
it declares. indicates fundamental
change in the savings situation. ire
spective of whether 1t is temporary or
not.
How Savings Used to Grow
SIN 1926 savings deposits increased
$1.562, 0OO,O 900, in 1927. almost $1.400.-
100000 and in 1928 over S2.3O0,000,-
000." it says. ut appears now that
some Influences in one year have taken
the gain that might reasonably have
been expected in savings deposits for
1929 and lowered them from the high
mark of the preceding year. This re-
cession Is not one coming as result
of drouth, famine. unemployment or
conditions outside of the United
States
"A year ago It was stated: The year
closing June 30. 1928. registered the
largest gain in savings deposits in
banks and trust companies of conti-
mental United States ever recorded
in the history of this country What
a difference one year makes! From
a gain of more than "a billions of dol
lars in savings deposits to loss of al
most 200 millions!
1.-THE loss in savings deposits is re-
f1ected also in the loss of savings de-
positors. The year 1929 showed to-
tai of 52.664127 depositors. against
53.1Ss.34S for 1928. loss of 524.221.
Industrial production was much
higher last year than the preceding
year. Factory payrolls were consid.
erably greater. In production, en-
ployment and trade. advances were
made over the preceding year. In the
farm areas the improvement noted for
1928 did not recede in 1929 and the
livestock industry in all its branches
was prosperous
The Causes of the Drop
"The causes of the recession are
possibly multiple. There is scarcely
any reason to doubt. that one Of the
important factors draining away saw
ings and decreasing depositors has
been the lure of profits to be made in
stocks. For a number of years the
people have been RECALLED with stories
of profits made in stocks in all types
of companies. During the last few
years there has been specious phi
losophy preached that panics such as
, formerly occurred were no longer pos
sible.
IF It was the lure Of profits in
stocks which caused the recession in
savings. then factor in future saw.
ings will be the success attendant
upon this venture of savings depos-
itors in stocks, If the experiment did
not prove generally successful. then
another year will doubtless witness
an increase in savings deposits as well
as in savings depositors."