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Show BANKERS REPORT ? . DROP IN SAVIlieS; - , i .- Lure of Stock Market Partly Ul Blame, but Slackened Specula, tion Expected to Bring Return to Thrift . Ths flnt recession la lbs natea! -Barings account In banks la to twea-1 ty years during which records la tali Held bar been kept by the Americas Bankers Association was disclose lor , last year In the recent annual compiler ' tlon prepared by Its Baring Ban j Division. The shrinkage amounted ta over 1195,000,000, on the basis of it- ures tor the year ending June 19, 191. whereas a year earlier the reported la-, crease was over 12,300,000,000, the largest ever recorded. The number of eatings depositors else decreased daring ths year eoTered by more thai 500.000 accounts. The lure of the ; akg stock market and affiliated aotWltlee ' are cited as part of the exptaaatie -for these changes. . '.' The association's statement says that sarlngs deposits la banks sad j trust companies of continental United States on June 39, 1929. stood at 121.- ' S17.S56.000. The recession hi ear lags. It declares. Indicates a fundamental ebange In the sarlngs situation. Irrespective Irre-spective of whether tt Is temporary er not i! Hew Ssvlngs Ussd to Grew "In 1914 savings deposits Increased ll.S62.000.000, In 1937, almost 9Mtt. 000,000 and In 1929 over l.MfiOr 000," it says. "It appears aew that some Influences In one year have taksa the gain that might reasonably hare been expected In savings deposits far " " 1939 and towered them from the hlgk mark of the preceding ear. This recession re-cession Is not one coming as a result of drouth, famine, unemployment or ' conditions outside of the United States. "A year ago it was stated: Tba year r " . etoslag June SO. 1921, registered tfe . largest gala la savings deposits -', banks and trust eompanlee ef eoejt. -aenul United States ever recorded., ta the history of this eonatry Waal ' . a dISsreaes one year stakes! Press ' ' a gain ef mere thaa 1 allnoas ed e)es ' lars In sarlngs deposits te a lees et ab -most 200 millions! Tha loss ta savings depesKa Is re fleeted also la tha tees at sevtaaa 4e posltors. The year 1919 showed ts tal ef 12,014.117 depositors, afatas It.lSUO for 1919, a loss et I9441L "Industrial produetlea was higher lest year thaa the preeedtaf year, rectory payroos were eeaslaV erably greater. Ia predoetlea, as - ployment and trade, adynsss weesx made over the precedlag year, la tt farm areas the lmproveateat aetad tat 1921 did not recede In 1119 and ftsl, livestock Industry m an Its breaches was prosperous. . . . The Csuses ef ths Bret) The causes of the reessskai saw possibly multiple. There le seareelf ", , any reason to doubt that ee at Its ' - Important factors draining away s! . tngs and dscreaslng dspesiters tas 1 been the lure of profits to be made 9a stocks. For a number at yean Ms people have bees regaled with stasias of profits made ta stocks la all trfea of eompanlee. During the last 'Se years there has been a speeleas pad- t losophy preached that sanies sias) s formerly occurred were do loagar pe stble. "It It was the lure af areata sa stocks which eansed the reeasstsa 9a savings, thsn a factor la rstars aa lags will be tha suoeese atteadat . upon this venture of seriate depee I tors ta stocks. If the experimeat did not prove geaerally seeeeesfol, taea another year win doubtless witness an Increase In savings deposits Sx) Wei as ta savings depositors." |