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 rowing. 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 Korean conflict. 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 accounts. 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 Tomorrow... The mmLine ■ Albemarle Electric Membership Corp. m V\ if Electrical Appliances ★ 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 mkSm' JUBILEE 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 jtate debt. | 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] individuals. | 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 fore. 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 influence. ' W. M. Morgan Furniture Co. Js Celebrating Its 46th ANNIVERSARY SALU T E S Albemarle Electric Membership Corporation On the Contribution To 25 Years of Rural Electrification SHOP IN HERTFORD During Our Bi<i Anniversary Sale v* O J AND SELECT PIIILCO APPLIANCES or 1101 POINT APPLIANCES at W . M. Morgan Furniture Co. 1914- 1860 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 nature's way. •Be sure wiring is heavy enough to carry the power you need. Electricity wastes itself trying to crowd through small wires, • 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 irons. • Give motors and equipment a periodic inspection. The The WESTINGHOUSE VALUE TRAIN \ comes to By rum ydj) Hardware Co. ml and br ngs you terrific savings! “Easy terms’’! SALE . ' 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 m\M%M \ NoD own Payment With Trade Pay As Low As $lO per Month All Westinghouse Appli ances and Televison Greatly Reduced. 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 (*)' } fereen! Byrum Hardware Co, i DIAL 2131 EDENTON i squeaky wheel uses more kilowatts. • 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 ideal). • 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 ’ PAGE in a direct blast of yobr heating system. • 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. Qualified 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 wards/' f 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 Feeder. ■«

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