Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-15
SAVINGS DEPOSITS
MAKE GOOD GAINS
Increase Reflects Rebuilding
of Accounts Following Break
in Stock Market.
BY CHARLES F. SPEARE.

Special Dispatch to The Star.
NEW YORK, February 15.-One of
the significant developments in the inn
proving financial situation Of the last
two months has been the increase in
savings bank deposits throughout the
country. This has been greatest in the
metropolitan centers, or where. during
october and November, there were
heavy Withdrawals of money for the
purpose of protecting speculative COM
mitmentS in stocks or for purchasing
securities when they we're on the bar
gain counter"
Figures that have just been prepared
covering the savings banks in the
Greater New York district indicate a
net gain in January of $22 1000, 900. This
was three times greater than the in
crease in the same month OF 1929. 1t
follows an addition to deposits in De-
cember of $l0,000,000 and a loss esti-
mated at around $4,000 900 in Novem-
Der and also shrinkage in the month
of October.
Rebuilding Accounts. -
| Similar conditions are reported from
suburban districts in this neighborhood.
! They have also been noted in parts of
New England that have not been greatly
/ disturbed by unemployment and to
less extent in the South and Middle
West and with good gains shown In
the savings accounts of banks and trust
companies on the Pacific Coast. which
| has. relatively few of the mutual saw
ings banks that operate in the Eastern
| territory.
Savings bank executives state that old
| depositors who withdrew considerable
part of their funds late last year have
| IT, l. 90 to- st1
again to build up their accounts. There
is another and newer element that
figures in the increasing totals of de-
posits. This is supplied by the indi-
vi6uals and corporations that have size
able amounts of money to invest, but
are not at present interested in either
common stocks and bonds and are at
tracted by the AZ per cent rate Of in
terest which practically all f the New
York savings banks now allow to their
depositors on daily balances.
This rate also brings the savings
bank to some extent into competition
with the commercial bank whose in
terest rate ranges from 2 to per cent.
having been raised by members of the
New York Clearing House Association
when call money rates were high last
year, but so far unchanged since call
rates and rediscounts dropped to the
lOWSoL level SlIlCe 1870.
Outlook for February.
From present indications February
will also show a good gain in savings
bank deposits over the same month of
flast year, but probably not so large as
that of January, for in the increase
last month the interest due January
figured as an important item
With the increase in savings bank
deposits these institutions have been
among the conspicuous buyers of the
various new bonds offered for public
subscription in recent weeks and of
which a considerable number are legal
for savings institutions in New York
State. This is the reverse of the sit
uation of three and four months ago,
when Withdrawals of deposits from saw
ingS banks were on such large scale
that these banks we're compelled to go
deep into their strong boxes and to sell
prime securities at sacrifice prices in
order to maintain their proper reserves.