MONEY

Money is strange stu,ff. Few men understand it. Many of those who pose as experts on the subject are as ignorant of its realities as a single-cell protoplasm on the ocean's bed is of the science of geometry.

It is not a generally understood fact that money is only useful when it is scarce. In this respect it differs from most other goods or commodities. Food, clothing, or shelter, for example, would still be valuable even though produced in such quantities that they could be had for little price. But money is only valuable when people have so little of it that they are willing to work to get it. In working for money, people produce t&re things they all need and want.

Money does its work by circulating. In this, also, it differs from other useful commodities. Food, clothing, and shelter, for instance, finally stay with those who buy and consume them. Circulation of money cr€ates purchasing power and prosperity when it produces useful things and gets t&rem moving into the hands of consumers. It is a fact that policies that restrict production hold back buying power no matter how much money is put into circulation.

Wages are generally about as much misunderstood as money, which, as has been stated, is one of the most thoroughly misunderstood of all modern commodities. There are, of course, two kinds of wages: money wages and real wages. Money wages mean a certain number of dollars for a certain amount of work. Real wages mean what can be bought with that money. There is a vast difference. Many believe that by raising money wages you solve the

Home-Repoir Trend Going Up

American homeowners will spend more on home modernization and improvement in 1957 than they did in 1956, the U.S. Savings & Loan League predicts. The League said a recent nationwide survey showed that 24/o of homeowners surveyed expect to make home improvements and maintenance expenditures of $50 or more this year, compared with 22.2% last year.

economic problem. But a wage increase that does not increase purchasing power of the dollars involved, is not a raise.

The writer of this piece would like to explain the money problem completely but, unfortunately, like most of the financial experts, he is also vague on the subject.

High L. A. Reolty loons for Homes

Los Angeles metropoiitan area real estate loans totaling $5,554,628 u'ere disbursed by the western home office of the Prudential Insurance Co. during the first two months this year. The total represented $4,519,628 ior residential purposes and $1,035,000 for commercial and industrial properties.

California statewide loans in the period totaled $1 1,316,186, of which $8,980,486 was for residential building. The total for the 11 western states and Hawaii was $21,609,566, of which $16,384,136 was loaned for residential building.