The Question of Finances. The problem which is confronting Buildahome is the same. problem which is perplexing the home builders throughout the country, says the Retail Lumberman. It is the question of finances. Go to one or two Here is a man-Needahome-who, with his wife and "kiddies," is living all cramped up in quarters which certainly are not to his liking. Why doesn't he build a home? Now there are a good many Needahomes in every section of the country. There are Needahomes in your community. of the Needahomes of which you know. wouldn't like to have a home of their own? you, if they are real Americans, that they do long for a "home sweet home." Then ask them why they do not build. Ask them if they Now it may be that some persons hold to the belief that building and labor prices are too high to permit building now. To the man or woman who gives that as a reason for not building, put the question, “Would you build a home of your own if you had the money to finance the operation?" It is a five to one bet that they will answer you in the affirmative. And there you are right up against the question of finances. Sift the whole home-building question right down to the very end and at the bottom you will find that money difficulties is the barrier. But There is a way to get around that barrier for the man who is really sincere in his desire and longing to have a home, and that way is suggested by Buildahome in our cartoon. It is to `take the matter up with some building loan "nabob." Now the Buildahomes of the country may not be able to go to every renter in the country and personally explain the way to permanently and forever avoid the landlord. The bankers and building loan "nabobs" can't reach all of them personally and show them that the renter will never rank above a "second rater." But the interests of the Buildahomes are so nearly identical that the two forces should unite in their endeavors to reach the Needahomes of this country. If you know of someone in your town who wants to build a home and needs financial help it is to your interest to encourage that person to save, for so long as he continues to live "from hand to mouth" and to use up his entire salary in paying rent, and on other foolish expenses, so long is that person's money going to be unavailable for building purposes. Our cartoon is intended to keep the Needahomes and the renters thinking about the building question, and to point out to them one way to get around the question of finances. Study this cartoon and you will see that the one big idea is to encourage those who need homes to begin right now to save through some building loan association so that they can finance the home they desire. Life Insurance Companies and Building Associations as Aids to Home Building. BY K. V. HAYMAKER. The old line life insurance companies of America are among the greatest of America's business achievements. They have attracted to their executive offices some of the ablest and brightest minds of the country; and around their directors' tables gather many of the wisest financial minds that our nation has produced. Aside from the wonderful good which these companies do in providing life insurance protection, their tremendous income and great accumulation of assets, makes them a power to be reckoned with in all the great financial affairs of the country. Life insurance funds are important factors in financing the commercial, industrial and transportation activities of America, and during the great war they were among the heaviest investors in the bonds issued by the Government for financing our part in that conflict. They are also liberal buyers of state, county and municipal bonds. A few days since The Association of Life Insurance Presidents held their annul convention in New York City. One of the features of that meeting was a very interesting and instructive paper read by Mr. Haley Fiske, president of the Metropolitan Life Insurance Company, who took for his subject, "Life Insurance Investments-What, Where and Why." The Associated Press sent out on December 9th a very interesting story based on this address, and The Eastern Underwriter of December 10th published a considerable part of his paper, and announced that the remainder would appear in the following issue. While the entire paper is of absorbing interest to students of current social and financial conditions, space forbids a review of the entire paper, but this article will be restricted to one feature in which he discusses the mortgage investments of life insurance companies. With commendable pride Mr. Fiske calls attention to the liberal response which life insurance companies are making to the nation-wide cry for homes and shelter. He doubtless speaks with authority when he states that in the first ten months of this year thirty-nine life insurance companies, representing 91 per cent of the life insurance business of the country, have invested in mortgage loans the sum of $232,739,386.70, of which $151,348,902.23 was placed on farm mortgages and $78,875,359.47 in cities, with two and a half million not separated in the figures. furnished by the companies. Among other interesting figures in this paper, is the statement that in 1875, 58 per cent of insurance company assets was invested in mortgage loans; in 1895, 40 per cent, and last year, "more than 30 per cent." These statistics are most interesting, and disclose the fact that the life insurance companies of America are doing a most commendable work in aiding to finance home building in this country. It must not be forgotten, however, that these figures showing the volume of mortgage loan business done by these companies include all kinds of mortgage investments, and it is a matter of common knowledge that a very large part of insurancé company mortgages is secured by mortgages on business blocks and office buildings, hotels and theaters, and other structures than private homes. Mr. Fiske says, speaking of the shortage of mortgage money, "Here is a need which just at present attracts most public atten tion. Criticism has been insistent that life insurance companies have not done their duty. They have been blamed for the shortage of houses. It is unthinking criticism. It has even been claimed that mortgages should be, if not almost the sole, at least the very greatly predominating form of investment." Then he proceeds to answer this criticism by a series of statements regarding the business of life insurance, saying first, "Investments must be to some extent liquid," and following with other unanswerable reasons, closing with the statement, "Safety of all the funds of life insurance companies would seem to call for diversity of investments within the limits of existing laws." While commending the life insurance companies of America for the great work they are doing in providing funds for mortgage investments, and without the slightest intent or purpose to disparage or belittle in any degree their activities in this line, it is perfectly proper to call public attention to the fact that in the past year the building associations of America have invested more than six hundred million dollars ($600,000,000.00) in new mortgages. It is only by comparison with other big financial operations that we get an adequate perspective and a real conception of the true size and value of the work which building associations are doing for our country. The fact should also be forcibly impressed on the public mind that practically every dollar of money invested in building association mortgages is secured by mortgages on American homes; and only an infinitismal frac tion of it is invested in any other type of property. As an aid to individual home building and home buying, American building associations are in a class by themselves, and have no competitors even approaching them in the volume and value of the work they are doing. Home-Owning vs. Divorces. The contention that home-owning makes for good citizenship and higher living ideals is corroborated by a recent study of divorce cases in Chicago, where, out of 3,577 suits for divorce filed in a recent year only seventy couples owned their homes. In 2,171 cases there were no children. Records show that in Chicago in 1919 there were 37,583 marriages and between 5,000 and 6,000 divorces, an increase in divorces of 20 per cent since 1911. The growth of the apartment habit and extravagance are given as two prominent causes for this increase. Social Service. Extract from the Annual Report of WILLIAM N. SWAIN, President of the Massachusetts Co-operative Bank League. I cannot urge upon you directors too strongly the importance of developing the social side of the co-operative bank, especially in the smaller communities. I believe that through such work the business of any progressive local co-operative bank could be doubled each year, by proving to the people that your co-operative bank has the needs of the public close to its heart. Service and sacrifice are at the foundations of the world. The co-operative bank claim to be and they should be the people's banks, and they should make the people in the various communities feel that they are ready to serve them in any way needed. If I could bring this thought home to every director and induce him to consider this matter in a broad and progressive way, the co-operative banks in Massachusetts will become the greatest institution in the state; and mark you, if the co-operative banks fail to heed the knocking of opportunity upon their door along these lines, other institutions will be organized and developed to care for the same. This is where the women directors can best make their influence felt.. Recently the treasurer of a co-operative bank in greater Boston said to me in substance that his bank was satisfied to continue doing business just as it was done when the first co-operative bank was organized in Massachusetts in 1877. Another treasurer of one of our co-operative banks stated to me that it was often enough for a co-operative bank to sell its shares twice a year. This is an ultraconservative attitude that we always find. co-operative banks want money. They want it badly and they must have it in order to finance the thousands of new homes which are now being demanded by the American families. Do not allow prejudice and narrow visions to blind you to the glorious opportunities which lie at the front door of every co-operative bank. The Our co-operative banks should get after our new citizens of all foreign nations. If we can make them save money and buy homes we are then sure of a contented family. We must make them welcome, teach them thrift, insist that they take out naturalization papers and assume the burdens of citizenship as well as enjoy its benefits. Make your bank a front-yard bank. Make your bank attractive for the public from the time the individual walks along the street in front of your bank; have something in the way of advertising that will compel him to come within the door and seek further information as to what the cooperative bank stands for. Keep up this good work every day. Make your bank a household name in your community. |