The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-05
STOCKING MONEY
FOR MORTGAGES
Savings Banks Especially Ac-
tive in Loan Market, Says
Benedict.
DEPOSITS ARE PLENTIFUL
Conservative Loans Will Be
Fully Met From Now
On.
DEPOSITS ARE PLENTIFUL
BY EDWIN c. BENEDICT

Of the Charles F. NoyeS Company.
Now that the great war has come to
a conclusion 1t Is with confidence and
who find It necessary to use mortgage
money look forward to the new year.
Since August. 1914. the supply of
money has been negligible. There were
times up to April 1917, when there were
considerable funds. although nothing APP
preaching a normal amount. Since the
entrance Of the United States into the
war there has been no market what
soever except under unusual conditions
Recently the savings banks have been
nibbling and some loans have been
made, a number'of them important ones.
the prevailing rates being from s per
cent. to per cent. with 51a per cent.
generally asked for first class loans.
One OF the most encouraging signs OF
an early resumption Is a loan OF 500, 900
at per cent made by one OF our lead
Ing savings banks on the property Mt
so Wall street recently purchased by the
National City Company. The bank which
made this loan is one Of the most con-
sentative ones. The officers have usually
been accurate in their forecast Of mar
ket conditions. and while the loan Is the
only really important one made at this
rate It is possibly indicative of what Is
70 come
Savings banks especially are becom-
ing more active in the loan market The
loss of deposits due to the enormous
Liberty bond fotations has been less
than was expected. The banks had for
titled themselves In the beginning to
Withstand far greater withdrawals than
they have experienced and now find
themselves In an excellent position,
Another important factor having 10 do
with savings banks Is the deposit of
what is sometimes referred to as stock
ing money" Thousands OF people beliey-
ing 1t well to safeguard themselves with
ready cash. prudently tucked away their
savings, thinking cash in hand better
than cash in bank. Now that the war
has closed and fear has passed these
people are depositing their money in
very large amounts in the banks. some
" Wnlcn are being literally flooded with
new deposits. The savings bank sltua-
ton looks very encouraging think
that legitimate requirements for con-
ServauVe mortgage loans will be fully
met from now on
Lie insurance companies on the other
hand are not likely to be in the market
Tor some time. These institutions patri-
oucally invested in Liberty bonds In
the fourth drive most OF the companies
made sufficiently large subscriptions to
anticipate their investment funds for
some time to come. II is not likely,
therefore, with another drive promised
for next spring that the insurance COM
panles Will be at all active in the market
during 1919. although late in the year
the situation may change.
building loan money will for a long
time TO come probably be very scarce
Ihere Is now real demand for addi-
lonal space OF all kinds. office, loft and
residential, and space never was more
!uiiy occupied or in greater demand.
downtown merchants, shippers and bus
ness people have been compelled to pur-
chase quarters for their own occupancy.
rms very favorable renting and selling
condition will probably continue as tho
erection OF new buildings will for a long
period be prohibited by two factors. frst
inability TO finance second. exceedingly
hish cost OF material and labor.