The Birmingham age-herald., 1921-08-04
By HOLLAND

New York, August 3.-(Special )- Herbert Hoover will receive in the course of a day or two letter writ ten by man of long experience as banker, although now retired. in
 which suggestion is made of the means whereby MT. Hoover can be greatly aided in his attempts to put an end to the stagnation in building which Is causing serious industrial depression.
 | This letter was written because Mir. Hoover has gained confidence in the 1 earnestness and sincerity of his pur- l pose and also because there appears to be nothing like partisan politics or in any way the playing of the | game of politics in this purpose of his.
 1 Mir. Hoover is told in this letter what he already knows, probably. that one of the obstacles which stand 1 in the. way of the revival of building operations is the attitude of the labor union associations whose employ ment is in the building trades. They are insistent for the most part upon receiving wages equal to or even greater than the wages which were paid to them in war days. The re- suit has been that many thousands of these building trade union mem- bers are now and have been for a long time out of employment. Con- tractors cannot afford to pay these high wages becuse the public will not make investment in buildings while the cost of them remains so high. The wage earners apparently look with complacency upon the situation in which many thousands of the
 building trades workers now find themselves. They are idle because there is no employment for them at the present high rate of wages.
 If the members of the building trade associations would voluntarily agree to accept a reduction of not less than 25 per cent from the pres ent rate of wages, there is no doubt that building operations upon a large scale would be resumed and especially encouraged by such support as Sec retary Hoover is able to give. { With the resumption of building ac- tivity all the now unemployed would in little while find employment. With the revival of building the ef- feet would be instantly felt in many lines of business. It would ultimate ly reach the lumber industry, which has been meeting with much embar rassment on account of stagnation in building.
 The leaders of the lumber industry especially of the northwest. are con- fident that if a readjus tment of wages upon a satisfactory basis can, be made. then this great industry will be revived. They say that it cannot be revived until the wages are reduced
 A Suggestion to Hoover
 In the letter addressed 10 Secretary Hoover is contained the suggestion of a plan which if carried out will enable him to put in operation his far reaching plans for the revival of the building industry. It is suggested to the Secretary that an appeal be made to Congress for legislatio which will authorize a payment of interest at the rate of 3 per cent upon postal savings. Some who have studied this postal savings system are confident that if interest were fixed at 3 per cent then very great increase in postal savings deposits would be made.
 The large sum thus received from postal savings might then be util- ized by Secretary Hoover so that he would be able to put in operation the plans which he has perfected for en- couraging the revival of building Some are opposed to an increase in the rate of interest upon. postal saw ings deposits on the ground that this would tend to decrease the deposits
 1 the savings bank. But the best opinion is that it would not materially etgrct savings banks deposits. It would be likely to bring out of hoard iaE money which is now in that way Nwithheld. Three per cent paid in cer- Niuty by the government would be 2 temptation for inves inent In pos l94h4avings.
 NeutsY a Hundred and Tes Millions
 Nnt& ltastanding the reduction in wagesA or the much pyotiaimed de- RressloA in industry and hasiaess Wage saraers and other in the city 70 New Yozk increased theip deppsits ;n the first SIX months of this sear by nearly siiaVo0,0oO.. tn tse agefe- gate the Gepossts made in thess szp- Elngs banks stood or Juy at si,stz- 000,0oo
 At the first reading ol these pfft-s ciany reported figAres it would seem as though deprsssiop h 4a not hesu as great as many nave sssertAa ii 10 have been. ard mat tN age eAfnefs in New York elty hS0 aeer on tae whole earning as muN sot npre than they eyer 6ia he
 Unofficial sta terenA oS from other states and scmel RerfS New 1 York state justif. tak ne savings banks 0epu here than in New York civ aat increased l proportionately as Rf ar iAey l have in this city. Tnere Sppears to be but one opinion he.5 byAthe man agers of the New York savitas banks ] when they are asked to @xAaan why in period of industyaal M bust ness depression it was pcsslpNN to 'n-
 crease deposits in si nedt by