The Filer record. (Filer, Idaho) 1919-1930, 1921-09-08
Make Savings Deposits
4vailable for Building

az Commerce Herbert Hoover offeFe'
some targeations - 20 ieEis1Atioi
that 4oaid b. helpful Ia makin'
ayslabla more money for nefesaarl
home balldlng throughout the e0un
fry that ought 10 receive the e@rnen
stsenflou Of mbeFmen and business
mea generally through their assoeia
lions cad commercial organizations
secretary Hoover said
a umk you viii All akfee VIII
ms ssst the chief RELIANCE for hons
bulidlex must be upon CUR savings
tastltnlionA Ne shall find that ihs
money available OF this type. -
mutusi savings bank. building and
loan soelaffons. in savings depart
msnh n national and state banks
ana gs..st eonpknisa. and Ia the a.
stf 81 31r Insurance companies. VIII
srrrA. somewhere about $4,000
oel ata
llminate the bslldfng and
u, hts. whieh obviously devote
al .eata 70 building: and sae
aefnl asinEn banks. which devote
iron 81 20 80 per cent OF their de-
posla - this purpose ~e shall lind
that te savings departments OF the
national banks. OF the state banks.
OF the irast companies and OF the IN
suranfs companies. which comprise
more h an Que half the total aavingn
probably DO not loan for home build
Ing acre than 10 20 10 per cent OF
ther sposits or savings assets.
n sre has been tendency dur
inr tn last fs~ years for the savings
of the people TO 30 In an Increased
proportion into this latter class Of In.
stltullnn. and 20 journey thence Into
eomms felal paper. bonds. etc, rather
than iaio home building,
sThia diversion OF savings money
into commercial channels has been
sery lFai shift 20 higher rates OF
lnials IA times OF great commodity
ao s. "a. II No examine the forth
ro.aIu. censas figures we will find
thai average interest paid BY
hoais nern for loans In the last ten
year. 1 less than 9 per cent.
'ifo~ ever. tho regular procession
% an bconomie depression IL. first.
ths O. fsring OF prices and volume
81 rfQ lction. with consequent TO
ducli0l. Ia amount OF capital needed
aud falling rate OF interest. We
should expect thls TO happen again
and Interest rates to fall 20 the reach
Of the home builder with Increased
sams available for building.
"on the other hand. believe that
Ne should have a much more stable
economic system n We had more
regular proportion OF our savings
available for home huildlng. There
Is. In fact. no other economic fund
han that Ia our savings institutions
from which money Tor our home
building can b. safely secured. II
~ould seem 20 me. therefore. highly
desirable that the amendment pro
posed 10 the Federal Reserve Act. by
etieh the larger proportion Of the
savings deposits OF national banks
nay BE- usca for baildink purposes. Is
IA advisable change. There - an
ample msrxin for a great increase In
hts respect. leaving ample proper
lou q llqasd funds.
There IL another diversion Of saw.
nKs that 1 think 10 worthy Of con
aud that u the postal saw
nss system la this system the &C.
,osits are 80 redeposi'ed a. 20 flow
alto commercial purposes. Il wonld
seem a ecastruetise thinx u 40 or 90
leF eeat q deposits IN postal savings I
asks eoald BE- diverted 70 home !
.u9ilas zs h the ease tn the savings /
,4aAt / ara convinced that an ar .
q o = he postal savings activities q
aealilse a considerable fund
8 81 lonNf. and ~ action sueh
3 |asd ~e should Increase
available sums for
Any such proposal
"a ulsh the necessary !,
local application and !.
afsstm az By filter .
rough sxistins balldr .
sas~ 6
q q d,finlte program !
asst the hearty sup.
~ good eitssen u wv
tt iAe safety - car nstieaai =
. peFpesuitr Of our Gov y
spsnd essssaslly uRoa IN. b
Asms e~ssfship then ~ .
rfee that every *tsp tskSn 10 :
saera 4alskly 70 fruitlon tho