The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1922-06-10
Emp1oYsnNr, PHYSICALLY BUILD
ING OPERATIONS HANDICAPPED
BY HIGH MONEY
Average Man Will Be Able TO bofro"
Cheaper Next Few Years Than no
Has For Last Rtve

Wellesley Mills Mass, June 1o-Rog-
er w. Babson Issued the folio"lnR
statement today regarding the money
situation:
For the past few years banks. mort
gage companies and others engaged III
the loaning Of money have been educat-
| Ing people to pay high rates or interest
| Manufacturers business men, nome
builders and others are today paying
| high rates OF interest which a re"
years ago they believed never "ouid %
paid. Naturally this has handicapped
employment especially building opera
TONS. These people now wonder wheth-
er this Is TO be a permanent CONDITION
or whether these high rates are only
temporary. Statistics lead me TO be-
| lieve that the high money rate period
/ OF the past few years has passed Tor
MANY years TO come. Already money
! rates have declined greatly In the
Wholesale market. Wherc-a year ago
the banks were loaning money on call
TO the brokerage houses at from SIN
| to eight per cent they are now loanins
! at about four per cent. Even three 10
six months paper can be sold al from
i4LGo to 4l.E discount. These are ire
mendous changes within short period
Of time. In fact the change Is so great
"a decline of about 50T) that 1t would
not be surprising If money rates no"
strengthened for 4 short while prepar-
atory to another downward movement.
Money is a commodity the same as
cotton, wool, lumber, or copper IL mas
I a wholesale market and a retail mar,
lket 4 wholesale price ana retai'
price Moreover. as with cornhou'I.es'
the retail price in the money marhe.
ilaes, about six months to year, pehlno
| the wholesale price OF the money MAJ
ket, This means that the rates in the
wholesale money market go UP anu
down from six months to year peloro
the average business man ana nome
Ihuildcr is affected 1t takes nearly a
wear for cotton to get from the planta-
ton to the shelves Of the department
store Hence 1t may be several months
before the retail cotton goods trade gets
the advantage of Il decline In the price
NJ raw cotton 1t Is the same Win
money as with cotton. IT Is some months
n fter the decline in the wholesale price
Of money before the business man ana
the home builder get the advantage IN
the decline of rates. The bankers are
not to blame for this. 1t is economic
law. AS II takes some time for the DAN
! kers TO raise the retail interest rate
for money after the wholesale rate ad-
vances so 1t takes consideraole tlii'e
for the rta!l rate to decline AFTER the
wholesale rate declines.
Will Borrow Cheaper
Being asked how this is to affect the
average man during the next year. hF'
Babson replied as follows:
/ This means that the average man
will be able to borrow money mucn
cheaper during thesnext few years than
! he has been able to borrow during the
past five years. 1t means that borrow
ers should now avoid borrowing Tor
long terms at high rates. ]. means that
there will be a decline in the retail
nrlce of money the same as there mas
been a decline in the wholesale price
Of money.
ct means that money will be more
available for the building OF hoHes'
Hchool-houses. roads and construction
work of every form. Most Of all II
means as the banks during the past rev
wears have educated the public to high
rites. the public must during the mex
few wears educate themselves BACK
again TO the lower rates Of some few
years ago.
General business as reflected In the
Babsonchart Is running 15% below nor
mal-an increase Of 10 over last week.
II Is holding well in face Of the bear
ish factors resulting from the railroad
ruling.