6: See diagram of business failures 1890-1914, in Vol. I p.
364.]

[Footnote 7: In the first annual report of the United States
Commissioner of Labor is given a long catalog of theories that have
been suggested, many of them quite fantastic.]

[Footnote 8: See Vol. I, ch. 38, on Abstinence and Production.
Believers in the glut theory usually condemn efforts to encourage
frugality among the masses, calling it the "fallacy of saving."]

[Footnote 9: See Vol. I, ch. 37, secs, 6 and 9.]

[Footnote 10: See e.g., Vol. I, pp. 271. 335, 365 367.]

[Footnote 11: See Vol. I, p. 304.]

[Footnote 12: See above, ch. 6, on the standard of deferred payments.]

[Footnote 13: See note on tariff legislation and business crises, end
of ch. 15.]

[Footnote 14: In both cases there is what is called in statistics
a high degree of correlation (viz., .719 and .800), indicating that
there is that percentage of probability that there is some causal
relation between the two sets of figures.]

[Footnote 15: See above, ch. 9, secs. 5, 6, 8.]

CHAPTER 11

INSTITUTIONS FOR SAVING AND INVESTMENT

Sec. 1. The nature of saving. Sec. 2. Economic limit of saving. Sec. 3. Commercial
bank deposits of an investment nature. Sec. 4. Investment banking.
Sec. 5. Savings banks in the United States. Sec. 6. Typical mutual
savings banks. Sec. 7. Postal savings plan. Sec. 8. Advantages of the postal
savings plan. Sec. 9. Collection of savings and education in thrift. Sec. 10.
Building and loan associations. Sec. 11. The main features. Sec. 12. The
continuous plan. Sec. 13. The distribution of earnings. Sec. 14. Possible
developments of savings institutions.

Sec. 1. #The nature of saving.# The motives actuating the different
classes of lenders may, for our present purpose, be reduced to two:
to postpone the consumption of income, and to obtain a net income
from wealth (or investment). Saving always is relative to a particular
period and is for more or less distant ends. The child saves its
pennies to go to the circus next week, the working girl saves her
dimes for a new hat next spring, the earnest high school pupil saves
to go to college next year, and the provident man saves for his
family's future needs and for his own old age. But always, to
constitute saving, there must be for the time a net result: the
excess of income over consumptive outgo in that period. This is easily
distinguishable from various forms of pseudo-sav