The Washington times., 1920-10-20
Bankers, Are You Pushing
The Wagon?
To the bankers of America:
Here Is One Banks Method of Putting Its Shoulder
TO the Wheel of the Progress Cart.

To the bankers Of America
This nation has placed in your hands its most potent
H. ustrial forcethe credit by Of which men pro
due manufacture and distribute the necessities Of e
On your judgment in handling this force depends the
nc ons welfare You may produce destroy, you may
bu tear down, you may distribute oongest tho
nat.ons resources
Building conditions five years behind the normal
!ro ram necessary to keep pace with growth
Upon you lies the burden of solving the housing situa
cperhaps the greatest economic issue in country
dy Many of you have become cautious to the extreme
of Gaming backward in extension of credit to builders Of
homes There nation wide building loan conservatism
ing bankers
Much Of ts caution is due to belief in the instability
of present production prices of building materials You
have prices fall slightly and your good would
dictate that investment in falling commodities
lnsound
Will prices continue to fall? The Times ha. been given
to two leers-each from producers Of basic build
ing materials their agents in Washington These may
show you how the wind is blowing First message from
lumber company which produces approximately Is perl
cent of the raw lumber of the nation:
Lumber prices a safe basis, far as the
prospective builder is concerned The wholesale price
of lumber has reached point where it is being sold
below cost by so per of the manufacturers prouc-
ng Southern pine. The future trend Of prices will de-
pend entirely the law of supply and demand and,
without outside interference, these prices will seek
level that will give the producers fair return
their investment
And this from a producing considerable
proportion of the doors and sashes Of the country
There is real demand in this country for houses.
There is not, in opinion, overproduction of
commodity at the present time, providing the demand
which is real is allowed to assert itself With
the amount of construction work that must be done
IN this country in the next five years. cannot
possibility of shrinkage in value Tin building materially
other than that which may be forced temporarily.
The family which seeks to build its own home is not
affected directly by fluctuaon in property values The
home not investment for financial gain The value Of
the house. to the person who and lives in it, lies not
its exchange value in its of reproduction but
in its desirability place in which to live
The Holyoke National Bank of Holyoke Mass, has
recognized this basic economic truth and has acted upon
it. extends to the home seeker the credit necessary for
him to build home within his This is the Holyoke
plan:
This bank will make construction loan to any
approved builder for any family which has thou
sand dollars deposit in its savings department for
six months preceding decision to build. The lot must
not be less in size than 50xl20. The house and land
to cost not less than $4,000 with all necessary modern
improvements The money deposit with is to
purchase the lot start the house. both The loca-
ton must be subject to approval and all houses
connected to
For this purpose will half million
dollars
After the house is completed and approved we will
make effort to get you Savings Bank loan for so
per cent of the actual cost of house and lot The diff
ference between the savings bank loan and the Of
the property less the amount of your money used
will carry for you at per cent interest, payments
to be made weekly or monthly. as may be arranged.
This very interesting plan but the astute banker
Immediately asks What will happen in of drop
in price of materials decrease in real estate vaues?
Mr. George G. Gill; president of the Holyoke National
Bank answers:
"Supposng for the sake Of argument that at the
end of two years there considerable decrease The
home owner has paid $25 month monthly during that
Io boop opl had