OCR Text |
Show TO LEND SAVINGS" ON REAL ESTATE New York Banks May Put Out $250,000,000 NEW YORK, Feb. Investments of ths 140 savings banks In this stats In mortgages and real estate bonds were Increased In 120 by fl28.IOs.000. and It Is expected that 1260,000.000 mors will be available this yesr for the same purposes, according to Information In-formation given out by the Savings Hanks association. It Is thought that this new money will have an Important Impor-tant bearing on ths housing situation. The total Invested In mortgage holdings hold-ings now Is $l.lf.06,000. "Kxtenslve Investigation," said Dr. Harrison H. Wheaton. executive manager man-ager of the Savings vBanks association, associa-tion, "Indicates that approximately 1200.000.000 will become available In 1921 under normal conditions, provided pro-vided ths people continue to deposit more In the ssvlngs banks than they withdraw. .If deposits continue to increase in-crease during the year at ths rate of last year, possibly f2SO.000.000 may be available for such Investment. "Under ordinary circumstances, continues Dr. Wheaton, "an, average of 16 per cent of ths amount Invested by savings banks In bonds and mortgages mort-gages becomes available annually for reinvestment. In other worda. the annual an-nual turnover of mortgage money this year would approximate fls6.000.000, due to payments on mortgages, foreclosures fore-closures and sales. New deposits will also furnish an sddltlonal source of mortgggs money. If these new deposits this year equal those of 1919 when we hsd a fair year of savings bank business snd the excess of deposits over withdrawals also equals the excess of that year, about 60 per cent of this excess, conservatively con-servatively figuring, will become available avail-able for the purpose In question, or about fs7.000.000. "Adding to this the annual turnover or reinvestment funds the total Is well over f260,000.000. "But It should be clearly understood that while this amount may possibly become available during the year. It Is wt-aH-avallAble at any ons tiros. Ths present returns show that only about f76.000.000 Is available. Havings bsnks cannot Invest all of their assets In real estate bonds and mortgages. The law permits an Investment of only S per cent. Furthermore, the first obligation ob-ligation of a savings bank Is to depositors depos-itors because It holds In trust ths money of small savers snd cannot take chances on speculative Investments at high valuations. "If the savings banks of ths stats csn get proper mortgages based on reasonable values, allowing for proper Increase In such values as against prewar pre-war days, they stand ready to do their share In the solving of whatever housing hous-ing problem there may be In any community. com-munity. Many savings banks. In fact, sre advertising for such mortgsges continuously, but are unable to obtain them at present." |