SAVING ON THE RAINY DAY

Evening Post, Volume CIX, Issue 115, 17 May 1930, Page 8

SAVING ON THE RAINY DAY

In January deposits in the State Savings Bank of Victoria were £3,----188,403; in February they were larger, £3,250,162; and in March they were higher again, £3,781,252. Looked at in themselves and without further analysis, these figures do not suggest a state of depression. But depression can be read in if one looks at the withdrawal side, for on the whole quarter withdrawals exceeded deposits by over £315,000. Apparently there are many people who are forced to withdraw money, but there are also many people who are depositing more than usual—and it is suggested that both these operations do actually point to depression. For depression creates saving where saving is possible; the depression psychology stops certain leaks that the careless had permitted, and makes them careful enough to put an extra penny by for "the rainy day." In adopting this explanation of the increased deposits, the "Argus" goes further and says:— Similar reasoning frequently _ increases savings bank deposits in times of sectional strike*. Workers and their wives are afraid of the dispute extending and involving their means of livelihood. Hence they save a little more than usual. In depression the advice "save as you spend" is less heeded than the advice "save by not spending." , In the Mallee —stricken by bad seasons —the Victorian Government is professing to adopt a form of moratorium for farmers, and the question has now arisen whether the storekeepers who cannot collect money from farmers shall be similarly protected from their own creditors. On this the same newspaper comments: — It is generally conceded that there is no likelihood of merchants pressing their claims upon the storekeeper. . . . No good could come of such a procedure, and the merchant would probably be far worse off in the long run if any attempt were mado to press for ■payment of debts when the storekeeper could not possibly meet his obligations. If the merchant can carry the storekeeper's portion of the farmer's indebtedness there must be strong credit somewhere.