The Oakley herald. [volume] (Oakley, Idaho) 1908-1961, 1921-09-16
Advertisers
Column
News of Things Related to the
Service Given You by Herald
Advertisers
Making Savings Deposits Available
for Home Building

C. w. Gamble, General Manager
of the Boise Payette Lumber Com
pany, calls our attention to an adj
dress by Secretary of Commerce
Herbert Hoover before the National
Association of Real Estate Boards
in Chicago. Mr.. Gamble believes
that Secretary Hoover offered some
valuable suggestions as to legisla-
ton that would be helpful in MAX
ing available more money for neces-
sary home building.
We quote from Mr.. Hoover's
remarks;
81 think you will agree with me
thatthe chief reliance for home
building must be upon our savings
institutions. If we examine these
institutions, we shall find that the
money available of this type, in mu
.ual savings bank. building and
loan associations, in savings depart
ments of national and state banks !
and trust companies, and in the as
sets of our insurance companies. |
will aggregate somewhere about
$4,000, 100000.
IF we eliminate the building and
x1rl,f oh I,xrfn nclu al
votoe all their assets to building,
and the actual savings banks, which
devote from 40 to SO per cent of
their deposits to this purpose, we
shall find that the savings depart
ments OF the national banks, of the
state banks, of the trust companies
and of the insurance companies.
which comprise more than one-half
he total savings, probably do not {
oan for home building more than
10 to is per cent of their deposits
,r savings assets.
There has been a tendency dur
ng the last few years for the saw
ngs of the people to go in an in
reased proportion into this latter
lass of institution, and to journey
hence into commercial paper, bonds,
to-, rather than into home building
This diversion of savings money
ito commercial channels has been a Il
cry natural shift to higher rates Of L
interest in times of great commodity L
Movement. If we examine the N
)rthcoming census figures we will N
nd that theaverage interest paid by N
ONE owners for loans in the last NJ
IN years is less than per cent. N
However, the regular procession R
an economic depression is, first, 81
lie lowering of prices and volume Of 81
reduction, with consequent reduc- 81
on in amount of capital needed 81
nd falling rate of interest. We
lonld expect this to happen again T.
Id interest rates to fall to the W
ach of the home builder with in
eased sums available for building. TT
"On the other hand, / believe that W,
2 should have a much more stable VI,
onomic system if we had a more VI,
gular proportion of our savings n,
ailable for home building. There 7 :
in fact, no other economic fund NJ,
an that in our savings institutions NJ,
pm which money for our home D.
Hiding can be safely secured. II 10
'uld seem to me, therefore, highly
sirable that the amendment pro-
sed to the Federal Reserve Act,
which the larger proportion OF 7'e
, savings deposits OF nationa. III
INKS may be used for building pur- si'
SEES, is an advisable change There ~
an ample margin for a great in al
ase in this respect. leaving ample 49,"
'portion of liquid funds. ~
There is another diversion Of lite
ings that l think is worthy of est