People’s Savings In Thrift Institutions
r Play Growing Role In Capital Market
An insight into the growing
role played by the people’s sav
ings institutions in the nation’s
capital market in the last decade
as a source of credit and invest
ment funds for business and in
dustry, homeowners and individ
uals generally, and Government,
is provided by a study of the Life
Insurance Association of Ameri
ca.
The study serves as a timely
reminder of the fundamental need
and importance of personal sav
ing in a high investment economy
auch as ours, and of the. way in
which the people at large make
billions of dollars of capital funds
available every year through
their thrift institutions.
New High Mark Set
f The LIAA figures show that the
combined net capital funds avail
able from life insurance com
panies, savings and loan associa
tions, mutual savings banks, and
lime deposits in commercial;
rioanks, rose from $7.2 billions in
1947 to an estimated $17.3 billions
in 1957. The latter figure was a
record high, and represented a
rise of 140 per cent in the period,
a greater rate of growth than oth-1
er principal components of the
capital market. For example,
capital funds made available by
nonbank investors other than sav
ings institutions last year were
only 58 per cent greater than in
1947.
The funds made available to
the capital market from savings
institutions in 1957 represented
exactly 50 per cent of the year’s
total demands for credit and in
vestment funds according to pre
liminary estimates. This repre
sented a marked gain over the
earlier part of the 1947-57 decade
and was exceede’d only in 1954.
Total demands on the capital
market have likewise shown a big
rise to meet the needs of the spec
tacular expansion of the economy
in the years since the end of
World War 11. The 1957 figure
for total sources and uses of funds
was placed at $34.8 billions, rep
resenting a rise of 84 per cent
over the comparable 1947 total of
»$18.9 billions. The peak was set
In 1955 at just under $45 billions.
Pressures of Demand
During most of the last decade.
fuMs from savings institutions
combined with other nonbank
sources were able to supply all
but a small part of the annual
demand for capital and credit
funds. In a few years, however,
from 1950 through 1952, and again
in 1954, the demand for funds
outstripped the ability of the sav
ings institutions and other non
bank sources to meet the need by
a considerable margin. This re
sulted in the creation of billions
4f dollars of bank credit to fill
the gap, ana added to the strength
of the inflationary forces in the
economy.
An analysis of the LIAA figures
shows the high degree of steadi
ness of the growth pattern in the
supply of tunds made available
by the savings institutions to the
capital market in the 1947-57 pe
riod. The uptrend was interrupt
ed in 1955 and 1956 but was re
sumed last year with a spurt in
time deposits of commercial
banks.
Figures for the supply of capi
tal funds available from other
nonbank investors show a high
of volatility in the last
decade. For example, the total
coming into the capital market
from these sources was as low as
$9.8 billions in .1953 and jumped
.to $26.5 billions in the following
year, the hig hfor the decade.
Wide fluctuations in the funds
jnade available by corporations
and by miscellaneous nonbank
sources were the major factor in
the wide swings. Other import
ant sources of funds in this group
are state and local governments,
uninsured pension funds, fire and
casualty companies, individuals,
and U-. S. Government funds such
as OASI.
Mortgages Leading Outlet .
1 The record of the past decade
shows that mortgages have con
sistently been the biggest single
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source of demand on the capital
market. Only in one year, in
1952, has the demand for mort
gage credit been less than 30 per
cent of the total capital market
funds available, and in a few
years has been 40 per cent or
more. Last year the proportion
was 33 per cent. Residential
mortgages have been the domi
nant element in the demand for
mortgage credit throughout, with
commercial mortgages represent
ing a small part of the total. The
data show that on the whole the
residential mortgage market re
ceived an abundant portion of the
capital funds available during the
post-World War II period, accord
ing to the LIAA study.
With respect to the mortgage
market, an interesting develop
ment is that the last few years
have seen a small beginning of
corporate pension fund invest-
I ment in the residential mortgage
! field.
Corporate financing has been
the second biggest source of de
mand on the capital market in the
last decade, with the total demand
for such funds in bond and stock
issues topping $lO billions in 1957.
I Consumer and business credit
I have likewise been big demand
factors in most years. Demand
for funds from State and local
governments has risen substan
tially, practically tripling in the
decade. The Federal Government
on the other hand, has been a big
user of capital market funds in
some years and a supplier in oth
ers.
No Horse
Vegetable Peddler—‘Any horse
radish, madam?’
Young Bride—‘No, thank you!
We have a car.’
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THE CHOWAN HERALD, EDENTON, NORTH CAROLINA. THURSDAY SEPTEMBER 11. 1951
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; I
NEWEST GUIDED MISSILE SUB —The crew of the USS Grayback, the Navy’s newest
guided missile sub, attends to the colors as the ship is commissioned at Marc Island Naval
Shipyard in Vallejo, Calif. The Grayback is a conventional diesel-electric-powercd subma
rine but is especially designed to carry and launch the Rcgulus II guided missile. She is
called, the most^ad vancedoMhe type by the builders.
mmm
By Ted Ketting
During recent years there has
been a gradual change in the
equipment used for light-tackle
salt-water fishing says Robert D.
Hall, Salt-Water Fishing Editor
of Sports Afield Magazine. Per
haps the most revolutionary
change resulted from the inven
tion of fiber-glass fishing rods.
These powerful, flexible rods,
with their excellent casting ac
tion, helped the phenomenal
growth of salt-water spinning.
As spinning took hold, anglers
discovered that the fine-drawn,
water-clear monofilament lines
caught more fish under average
conditions than the customary
1 linen or nylon lines that had been
so popular for years. Small light
weight lures could be handled
more skillfully. With the use of
spinning equipment anglers are
catching more fish with less ef
fort and enjoying more sport from
the average-sized fish that in
habit the bays and coastal waters.
It is difficult to pinpoint who
originated the idea of casting
from a fixed-spool reel. How
ever, it is reasonable to assume
that the idea was partly deriv
ed from the method employed by
early hand-line fishermen of
southern Europe in the 17th cen
tury, who cast their lines from a
wooden winder held edgewise in
the direction of their cast. We
also find that the same principle
of casting was employed by the
Indian tribes of the Pacific Coast
and by many native fishermen
who inhabited the southern
islands of both the Atlantic and
Pacific. These natives wound
their hand lines on sticks in such
away that in casting the line
would pull off the end of the
winding sticks with very little re
sistance.
As the popularity of spinning
in America took hold, it spread
to the bays and flats of Florida
where it has become extremely
| popular for honefish, sea trout,
snook and even small tarpon.
This use in salt water created a
demand for heavier rods and reels
with larger line capacity, which
could be used for surf, jetty and
boat fishing. Today the Ameri
can manufacturers and reelmak
ers of Europe design .salt-water
spinning equipment to meet near
ly every demand that is required
for sea fishing.
| Vets’ Question I*ox^
i Q —As a veteran, may I pet a
i GI loan to go into business with
’ a friend who is not a veteran?
atra Sunday and Monday.
"W riL,. J
Sophia Loren hears William
Holden ordered to active duly
in "The Key", Columbia Pic
tures’ Cinema Scope produc
tion playing at Taylor The-
A—Yes, you may join with a
non-veteran in obtaining a loan.
However, the amount of the loan
on which VA guaranty or insur
ance can be based will be in pro
portion to your interest in the
loan. Guaranty or insurance can
not extend to any part of the loan
which represents the non-vet
erans contribution to the business
Q—l am about to start on-the
job training under the Korean GI
Bill. How many hours a week
are considered to be full-time
training?
A—lull-time training is consid
ered to be the standard work
week of the firm where you are
taking your training. However, it
generally may not be less than llfi
EMr. Farmer
SPEIGHT
GINNING COMPANY
COTTON
WE PAY TOP PRICES FOR Y OCR
SEED COTTON
- CALL~
HOME FEED & FEKTILIZEK COMPANY
PHONE 2313
CIIOWAN STORAGE COMPANY
PHONE 2123
or Call ED. SPEIGHT
PHONE 2280
| PERFORMANCE .j
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PURE gasolines “hold more
records* for performance
than any other”
Get PURE-PREMIUM Jmf
...it*G super premium now J^gSpr
teVy | Hot.
Winslow Oil Company jM4 “j£
Phone 3336 Hertford. N. C. n
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I hours a week.
Q —l am eligible for training
; under the War Orphans Edumi
i tion program. Can I use my right
I under the program to take a cor
respondence school course in car
tooning?
| A—No. The law does not per
; mit you to receive benefits for
correspondence school training.
Also prohibited, under the War
Orphans Education program, are
courses in dancing, personality
development, and bartending; on
j the-job and on-the farm training;
I training given by radio or tele-
.^ihenleii
Golden ml
AGE OmL
'Gin ! 1
.30 / R
pint n
$0.63 / U
SCHENIfY DISTIIIFRS (0. DISIMUO D«Y SIN fOSM 100% SHIN NtUTHI SPIRITS 90 »00f.
PAGE FIVE
I—SECTION TWO,
| vision; and training in foreign
j countries.
Q —Who receives the monthly
[ VA allowances under the War Or
j phans Education program the
student or his parent?
A—ls the student is under 21,
his living parent or guardian will
receive the allowances. If he is
21 or over, the allowances will be
; paid directly to him.
•
God has two dwellings; one in
heaven, and the other in meek
and thankful hearts.
—lzaak Walton.