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Personal Debt Up Sharply In 1959 As
Growth In Savings Shows Decrease;
"Buy Now And Pay later” Is Factor
Hie American people last
year added only 62 cents to]
their accumulated long-term av-j
ing for every dollar of the net
increase in their personal bor
The 1959 relationship repre
sents an abrupt about-t. ee from
the previous year when the
people’s “nest egg" in accumu
lated long-term savings grew by
$1.38 for every do. Ur of person- 1
al debt increase during thatl
year, and (likewise from 1957 j
when the ratio was $1.12 in in-'
creased savings for each dollarj
of debt expansion. In fact, the]
relationship last year was the'
most unfavorable with respect]
to savings since 1950 when it;
v affected by the carryover
of wartime consumer goods
shortages plus the onset of the
Check to Savings Growth
A big factor behind last year's
development was a sharp rever
sal in the growth trend of ac
cumulated long-term individual
savings since the mid-Fifties.
Combined with this was the es
tablishment of a new record in
personal borrowing, with the
more traditional types of debt
incurred to buy homes, cars and
other goods swelled by the ris
ing prevalence of "Buy Now,
Pay Later” plans.
It is true, of course, that the
American people have other
large financial resources, such;
as increasing equities in homes,
ownership of securities, and
holdings of currency, plus the
growing assets of pension and
retirement plans. And it is a;
fact, too. that individuals last
yeaj were large buyers of high-|
yielding Treasury notes, much of
this at the expense of savings
Nonetheless, the 50 per cent
jump in the expansion of per- 1
sonal debt in 1959 over the
growth in 1958 is causing con
cern. Equally disturbing is the?
reduced growth in savings, par- ’
ticularly so with respect to the;;
vital area of capital formation.!
in which personal savings and}
the people’s thrift institutions
play such a fundamental role in
promoting economic growth.
Debt and Savings Data
The figures show that person
al debt crossed the S2OO billion
Umphlett Building for
Hertford Motors ® BfittET
■ Albemarle Electric
Membership Corp. m V\ if
★ G. E. Refrigerators r i ,
k..we congratulate you
★ G.E. Ranges . on
★G. E. Freezers |jj | g
★ G.E. Television m uu mm mm mm
OUR PRODUCT IS TOPS....
OUR PRICES RIGHT! VKdO? c f Rural Electrification !
Hertford Motor Company
PHONE 5741.,,., HERTFORD, N. C.
mark for the first time in 1959,
j rising to an estimated $211.8 bil-
I lions at the end of the year for
; an increase of $21.1 billions over
the year before. This increase
was $7.4 billions more than the
rise in 1958, and topped the pre
vious record annual debt expan
sion of just over S2O billions in
1955. The debt figures comprise
mortgages on one-to-four family
] nonfarm homes, consumer credit,
.life insurance policy loans, and
I farm mortgage and non-real es
| At the same time, total ac
cumulated long-term savings of
I individuals grew by just over
* sl3 billions in 1959 to reach an
estimated $294.4 billions at the
year end. Last year’s increase
compared with a rise of just
under sl9 billions in these sav
ings in 1958, and represents one
of the smallest annual gains in
several years. These savings,
compiled by the Federal Home
Loan Bank Board, consist of
savings accumulated behind life
insurance policies, accounts in
savings and loan associations,
time deposits m-.eommercial and
mutual savings banks and in
Postal Savings, accounts in cred
it unions, and redemption value]
of U. S. Savings Bonds held by]
A breakdown of the savings',
figures shows that savings in
life insurance increased $4.4
I billions in 1959, virtually the
same as the year before. The
l>ct growth in savings and loan
associatons was $6.6 billions for
the year, up a half billion over
' the year before while credit un
ions showed an increase of about
SIOO millions over the half bil
lion growth in 1958. However, i
savings deposits in mutual sav
ings banks showed a net in
crease of only S9OO millions last
year as compared with $2.3 bil
lions in 1958. and the compar
able figures for time deposits in
commercial banks were $2.7
billions as compared with $6.3
billions. Redemption value of
U. S. Savings Bonds held by
individuals declined by $1.9 bil
lions during 1959, nearly four
times the drop in the year be
Pacesetters In Borrowing
Home mortgages paced the
THE CHOWAN HERALD, EDERTOH, NORTH CAROLINA, THURSDAY, MAY If, 1960.
4-H's Clover Leaf Grows in Latin America Too!
>■- . H, .... .
COLOMBIA COSTA MCA CUBA JAMAICA MEXICO ttCARACUA
tCUJUXR - ■LSALVUXH ,ANWA MMRIAT M
WIITJ) BTATCS OUATO4AIA BRITISH GUIANA JUERTO RICO URUGUAX TQtRZUEU ®
DEARBORN, MICH.—The famed symbol information on the young Latin American
of the American 4-H Club takes many forms movement, for the first edition of Ford Motor
as the rapidly growing movement spreads. Company’s Yearbook for Rural Youth. The
through Latin America. Illustrated above are book, first of its type, will also be published
the insignias collected, along with detailed in Spanish and Portuguese next month.
growth in personal debt last'
year. Preliminary figures place]
the mortgage debt on one-to-|
I four family nonfarm homes at ;
the end of 1959 at just over sl3ll
[billions, a rise of $13% billions j
, over the year before and a bil- j
lion dollars greater than the pre
vious annual record set in 1955. j
Housing starts in 1959 were 1
about the sam e as 1955, but the!
mortgage borrowing total wasj
boosted by the inflation of home!
construction costs in recent,
years, the growth in demand for
larger homes, and the trend to
ward smaller down payments.
Consumer credit was the other
big personal debt booster last
year, with a net rise of just j
under $6% billions to bring the;
total to a new high estimated ati
$52 billions at the year-end. I
The only year to show a gain|
this large was 1955. Then the;
big factor was a boom automo-j
bile sales year, but the recent|
proliferation of revolving credit;
programs and other individual!
borrowing plans throughout the.
range of consumer expenditure
has become a more significant
W. M. Morgan Furniture Co.
Js Celebrating Its
SALU T E S
Albemarle Electric Membership
On the Contribution To
25 Years of Rural Electrification
SHOP IN HERTFORD
During Our Bi<i Anniversary Sale
v* O J
1101 POINT APPLIANCES
W . M. Morgan Furniture Co.
HERTFORD. X. C.
How To Cut Down
Your Electric Bill
Looking for ways to cut costs?
Then try some of these sugges
tions for saving electricity:
• Keep your wife from setting
the furnace thermostat too
high. Train her to keep on
the move and keep warm
•Be sure wiring is heavy
enough to carry the power
you need. Electricity wastes
itself trying to crowd through
• Cook everything rare. A little
step each dav and vou can
soon eat it raw.
• Be sure that wiring does not
come into contact with water
pipes, eave spouting, trees or
roofs of buildings.
• Marry girls off young. Let
some other dope heal their
• Give motors and equipment
a periodic inspection. The
The WESTINGHOUSE VALUE TRAIN
ydj) Hardware Co.
ml and br ngs you terrific savings! “Easy terms’’!
. ' J ~ . : '■ ' | |r~S ~x .w-"" 1
IH r ' H - o I
Pi „ .-Jsl
• BIG 9 cw. ♦♦. FITS in 24“ . ],
• «V S FROZEN STOtAGf '
• tou« run voptH SHiivis 4 ■
WE SERVICE twpiSsiiJ/
Only fQQ ™
■ jK Jrfc
NoD own Payment With Trade
Pay As Low As $lO per Month
All Westinghouse Appli
ances and Televison Greatly
Big Trade - Liberal Terms
I Air Conditioners I —•
al Low, Low Priees|
TA I. ROT. Mod,] A-' , AiAom, 11,
picture sharpener * push button on/ I
t»ff ★ set & forget volume f ~
eontrol * big 21-inch (*)' }
Byrum Hardware Co, i
DIAL 2131 EDENTON i
squeaky wheel uses more
• Go to bed earlier.
• Place your water heater as
near the sink, lavatory and
bath tub as possible.
• Use small pipes and insulate
well on long runs.
• Don't bathe your kids too
often. If they smeli, send
them outside to plav.
• Stop all faucet leaks. You
pay to pump and heat water.
Why waste it°
• Ditch vour TV (not a bad
• If a fuse blows, find the cause
and correct it.
• Don't pay your electric bill
and be disconnected This
will save everything.
• Pay your electric bill before
the 10th of the month and
save the collection charge.
•Go to church frequently.
While there, your TV. radio
and other equipment will not
be in use.
• Locate your refrigerator and
freezer where they will not be
in a direct blast of yobr
• Visit your friends and rela
tives as often as possible
Accept their invitations Jo
stay for meals —even for baths
if invitations can be waandl
ed. Their water is just
good as yours.
Calling up a certain important
woman, tha lady gushed, “I heijr
your husband is to be appointed
to a Cabinet post. If that js
■ true, do come to dinner at my
place next Tuesday. If it isnjk,
then do come in for coffee after
Struck It Poor
Some young men who leatje
home to set the world on fife?
have to come back for mofei
matches. Corn Belt Lives tow