[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 § 1. The nature of saving. § 2. Economic limit of saving. § 3. Commercial bank deposits of an investment nature. § 4. Investment banking. § 5. Savings banks in the United States. § 6. Typical mutual savings banks. § 7. Postal savings plan. § 8. Advantages of the postal savings plan. § 9. Collection of savings and education in thrift. § 10. Building and loan associations. § 11. The main features. § 12. The continuous plan. § 13. The distribution of earnings. § 14. Possible developments of savings institutions. § 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-saving of which many persons that are really spending all their incomes are very proud. Such forms are: planning to buy a particular thing and then deciding not to do so, but buying something else; finding the price less than was expected, and thereupon using this so-called saving for another purpose; spending less than some one else for a particular purpose, such as food, but off-setting this by larger outlay for another purpose, such as clothing; spending all one's own income but less than some one else with a larger income. We may define saving as the conversion, into expenditure for consumptive use, of less than one's net income within a given income period.