Evening star., 1933-05-27
FREEING DEPOSITS
MAY HELP REALTY
All Branches of Real Estate
Business to Be Aided,
Smithy Believes.

The flow of between S. 900 900 and
S10,000,00o in tied up deposits back
into the channels of trade, which is
believed imminent with the proposed
bank merger here, should go far toward
rejuvenating the local real estate busi-
ness in all its branches, in the opinion
| Of Horace G. Smithy, rea}tor.
The major portion of these funds
consists of comparatively small de-
posits representing actual consumers
dollars" Mr. Smithy believes, and the
economic life of the entire community
will be benefited as they are put to
work
Tenant First to Suffer.
"T'he tenant, as usual, was the first
to suffer in this enforced temporary
retirement of quick turnover funds,
says Mr.. Smithy. Then. in natural
sequence, the suddenly curtailed buying
power of an army of consumers mani
tested itself in the real estate field gen.
orally. Rental collections were affected
in some cases, planned expansions were
deferred and the market for new homes
suffered.
"As soon as these funds are released
hundreds of tenants will use a part OF
them to pay off delinquent rents and
other obligations. In the commercial
field tenants will take advantage of the
low rental levels to acquire additional
space against the time when improving
business conditions compel expansion
Scores of families now living in
cramped quarters will feel that they
can, now that the uncertainty regard
Ing their funds is removed, afford ad-
ditional living comforts and they will
fa yof far Io
more modern apartments. Home own
ers will be enabled to resume mortgage
interest payments and many will start
upon long neglected repairs and i'm
provements to their properties Pros
pective home buyers will return to their
quest for suitable investments and
those with money available will be
attracted to the market for mortgage
notes.
''As another result of this increased
activity in the market for both COM
mercial and residential properties, fresh
outside capital will be attracted to new
building enterprises, with profit to
the construction materials interests
This money, in fact, should invigorate
many lines of business as it passes
from hand to hand before working its
way back into the bank"
4AC 0CHOoiuo 1lOW IACd up, odyS I1L
Smithy, are of more Importance to
business than the total amount in
volved would imply.
Turnover to Be Rapid"
Each million released" he says,
will represent much more than that
fixed sum, because of the urgent neces-
sity for its immediate employment In
other words, the turnover will be so
rapid that in brief time each hundred
dollars will have settled triple that
amount in long overdue obligations.
The effects of any considerable none
tary tie-up were graphically illustrated
in Detroit and other large cities. On
the day the sequestered funds were re-
leased in Detroit the department stores
of that city set new all-time record
in sales, collections in many lines went
to new high marks and a PROSTATE
realty market was galvanized into &C
ton almost overnight.
LAS a foretaSte of what may be eX-
pected to follow the freeing Of these
deposits here, and in factual support of
this somewhat sketchy forecast, it can
be stated that the sale of seven new
homes constructed by two local firms,
long held up by inability of the pros
pective purchasers to make down pay
ments will be consummated as soon as
funds are again available"