The Bridgeport times and evening farmer., 1921-06-17
Millions Of Savers Are Needed For Funds
 For Business Revival

Millions of savers are needed to | suTg1ly the funds which will hasten | business revival and promote gen eral prosperity. This is the theme 1 of a special article in a recent issue l of the Bankers Magazine contributed by B. M- Grant. naanager of the Gov | ernment Loan Organization of the | Second Federal Reserve District, writing under the caption '"The Per manent Solution of the Credit Situ- l adon.' The writer says:
 '-The condition of world finances demands that new classes of invest ors be developed. Large investors may be left to themselves but it is essential that small investors be en- | couraged. The fact is that America has scarcely begun to show the world what she can accomplish | through a well balanced program of ment- The whole people must CO., operate with vigorous determination to accumulate capital. Wage earn CTS can save and invest large sums of money in the aggregate-the success of the Liberty Loan campaigns dem onStrahed this Thirty million work CTS saving an extra dollar a week for three years would release an addi- enterprises. A properly organized effort, actively supported by bankers, business men and workers, could make this a continuing reality.
 
 It is doubtful if the capacity of the American people to save and in vest has ever been carefully ap- praised. A few figures in this con nection are significant. Of the $65,- 0,00O,000 estimated annual aggre- gate income of our people, probably S55, 100000, 1000 is paid over by em- ployers each year direct to their en- ployees~ The Comptroller of the Currency recently declared that ''the income of the people of the United States in excess of ordinary living expenses probably amounts to S1O.- 00O,000.000 per annum-' In this connection it is worth noting that for the year 1919 the American people paid taxes on s22, 000,0o0,OOO worth of articles chased by the revenue act would have been better served had a portion of this outlay been reserved productive capital
 Ioanable Funds Inadequate. At a time like this, when the sup ply of IoanabIe funds is highly ina dequate to meet the increasing de- Inand, 1t IS extremely important that bankers exert themselves to the ut most toward the stimulation of say
 ng. A shortage of capital is man fest on every hand As one evidence it may be noted that money rates are the highest in forty-eight years Bus sponsibility in this matter when they realize the direct relationship be- tween the accumulation of savings and the limits of credit expansion. Just as credit is based upon avaiIa- ble funds, capital in turn can come only from savings. There can be no mistake therefore about the ur- gency of drawing every idle and hoarded dollar, and all potential say ings, as rapidly as possible into fin anciaI channels. Gathered into fbe banks and the National Treasury fbis money forms the basis of credit IF pS-f tod hot hoarded money alone in America may run into ten figures Bankers and business men can render the country as well as themselves invaluable as sistance by cooperating in an effoT+ to draw these funds into circulation invested Savings Furnish EnspIoy-
 ment-
 Many people do not know that their savings can exert an inportant Influence upon the economic of the nation They are scarcely aware that their savings furnish part of inc capital and credit to carry on inc enterprises which give them their iiv- ing Little do they understand that the savings banks are one of tbe channels through which they in directly provide capital to develop building operations and municinsI undertakings; that the Commercial banks are a medium through which the funds deposited by the many are
 
 poses; that investment bankers are a channel through which capital goes to finance hugo corporate enter prises-
 Prosperity Depends On Thrift
 There is nothing more inspiring than the optimism of a man awaken ing for the first time to the iIIimita- ble economic possibilities of an America turned q nation of savers. A vision of boundless growth and prosperity unfolds before him. He sees a nation of thrifty and industri- ous workers speedily recovering the blessings of prosperity. Fortunate ly for America and for the world such a dream is not impossible for realization While thrift alone is not | sufficient to lead America into the sunlight of prosperity, it is the one great constructive force now requir- ed throughout the world. True. thrifty living by itself cannot guar antee the speedy return of better conditions, though naturally enough bankers were the first to recognize after the storm of war had subsided that without real economy in every household the future was none too
 It is truly amazing what confused, iIl-conceived ideas the averase-Ameri- can has regarding some of the out standing financial and economic facts