Evening star., 1933-12-02
SAVINGS DECLINE
- CHECKED IN EAST
Drop Is Less Than National
/. Average and Also Under
Last Years Loss. Il
BY EDWARD C. STONE.

Middle Atlantlc STATES, SAVINGS pailh
depositorS have kept up the average per
person better than the average Tor the
rest of the country, .accorolng 10 llle Ie
mort of w. Espey Albig, deputy manager
of the American Bankers Association.
Tbe loss in savings per inhatitant In
fhis region was IL per cent for the year
ending June 30, 1888, while this year
average for the whole country was ll-o
per cent. .. $40, o,so
The loss in this territory was also
smaller than in the previous year Wnen
the Middle Atlantic States experlenCso
a drop in savings of IL 5 per cent. ne
figures reveal that each lnhaDllanE now
has s28 less in savings than he had a
year ago. The Middle At!antic c,,S5anis states
NarTland. New York, New Jersey, Penn
sylvania and Delaware. In the analysis
covering this region, the report says:
I'm the Middle Atlantic States, with
their great density Of population ana
varied industries, is found the grea'
hulk of the savings of the country, S1o'-
7Ol 622 GOO, 49.9 per cent OF the savings
total for the country. New Engiano anu
the Middle Atlantic States comoHeo
raise the percentage to 69.9 per cent,
The loss in savings per lnhapltanI III
the Middle Atlantic States was IL per
cent, against loss OF ll.o per ceht .tie
nrevious wear. This means that each
inhabitant in these states mas Szo less
in savings than year ago.
= "In the two great savings areas OF tIe
country is promise given that with
slight upturn in prosperity savings IN
hanks would rapidly increase In the
Middle Atlantic States the numoer oI
depositors decreased during the year py
1893, ,428. The volume Of savings stanos
OF slO70l $4,000, or 1855 per In
habitant. with 16,911,411 deposltors,
New york leads this group with savings
per inhabitant of S543, second IN tiie
United States only to MASSACHUSETTS,.
- The report covering Virginia, Yves!
Virginia, North and South Caloilii" a1'. ai1e
the rest of the Southern states, says
that in these States, too, the decrease
IN savings is slighter than that OF
wear ago. The loss per mhaoltant was
Sc, or l46 per cent, as against SS' OF
ia ner cent, a year ago. The total VOL
.,roe of savings in the Southern states
Is represented by S1,189 785,0OO, with
9315007 depositors, a decrease from
last wear of S18O.477, 600 in deposits and
of 63.812 depositors. Savings per IN
habitant are S35.
, The resourcefulnesS of the people OF
this section is shown IN tne sllal pss y u
GllIle ILLS NGdl III llIN eaAA OAA -
Evidence abounds that reasonable up
tnrn in business would again put saw
jrps in this area on an upward trend.
Banks Trade Report Gratifying.
Rankers and business men in Wash
ington are much pleased over the laleSt
report from the Federal Reserve Bank
of Richmond showing that retail trade
in october, according to departnne1n3t n13
store sales, exceeded the OCTOBER iSo|'
record in most sections OF the dstrlct.
Part of this advance was seasonal out
in addition to this, improvement was
noted in several basic factors. Blsl-
ness failures were lower than in Octo-
her in 13 years, and lIabllltles were liie
lowest since June, 1920.
Material improvement in employment
was reported Coal production m
creased seasonally. Collections I'M
proved materially over the previous
month. and wholesale trade was better
than in October 1892. One OF the
best features in the report showed that
cotton and Tobacco C0nQlll0nS llaQ llll.
proved enough to add some SIS ,OO0,OOU
to growers incomes.
In banking, the report showed, re-
discounts for member banks OF the
Reserve system of the district declined
further and actual circulation OF Fed
eral Reserve notes increased season.
ally. Reporting member banks in large
cities slightly increased their loans and
investments in securities.
Demand deposits increased more
than the rise in loans, while time de-
vidual accounts for four weeks ended
November 8 showed a smaller than sea-
sonal decrease.
On the whole. the October sum-
mary is one of the best that has come
from the Richmond Reserve Bank IN
many months. It's interesting read
ing. Also significant.
Bane Defends Securities Act.
Baldwin B. Bane. chief counsel in
charge of the securities division of the
Federal Trade Commission, declares it
unfair to claim that the rigid new
law has been the main cause of the
lack of new securities offerings in re-
cent months. In recent address he
said the claim that the liabilities i'm
posed by the act have interfered in a
serious way with the flow of capital to
Industries seemed hardly sustainable.
At the same time, he added If the
underwriters in the reckless f1otation
OF securities, that would seem to be
desirable"
= New security issues had practically
disappeared before the passage of the
oct, Mr.. Bane stated He quoted figures
10 show that new capital issues brought
Out in 1929 totaled S11 592. 600. 900;
dropped to s7.677 900 900 in 1880, to
$4O22OOO 900 in 1891 and Sl,72l 900 900
N 1892. Corporate issues. separately,
footed up only to s643, ,O0O. 900 in 1882,
against s10,OoOOOOO 900 in 1929
. Moreover half of the 1882 corporate
issues were for refunding purposes. For
The three months Immediately preceding
July 27, the effective date of the Sc
curities act, issues not exempt from
registration under the act amounted to
$209, 100000 only, and that included the
rush to avoid registration under the
act, Mr.. Bane added.
Cleaned in Financial District.
Several local bankers are planning to
attend the twentieth annual dinner of
New York Chapter, American Institute
OF Banking, on December IL. The prin-
clpal speakers are to be Francis M
paw, president of the American Bank
arS' Association. and George V. Nc
Eaughlin, president of the New York
state Bankers Association.
Local holders of Norfolk g. Western
Railway stock are commenting favorably
on the roads fine showing during the
hrst 10 months of this year, when net
income after dividend requirements on
tne q per cent preferred stock. was
equivalent s12.68 per share on the
common stock, against S814 on the
common stock in the like period last
year.
. Capital banks which maintained
christmas Savings Clubs during 1888
pave completed distribution of some
94oUoOO0 to club members. 1t was re-
ported today that many of these
CheckS have already figured promi-
nently in early Christmas Shopping.
:. Carl Smith Dow, general agent of
the Pacific Mutual Life Insurance Co.
mas returned from visit to the home