Money Outlook Dismal
i The chief economist of the *; Metropolitan Life Insurance Û¢ Co. sees little relief for home-J; buyers next year from scarce Û¢: money and high interest rates.</br></br>The economist, Charles Mo-; eller Jr., says business and in-; dividuals have reduced deposits in savings and loan associations and mutual savings banks, the chief source of money for real estate mortgages.</br></br>Thrift institutions maintained their rate of mortgage lending through the first six months of this year by locating alternate sources of money, but Moeller believes ÛÏthis cannot be expected to be the case much longer.Û ; jack e. Sonnenblick, exeemie banks and thrift institunot get ÛÏkickers,Û they must tive vice president of the morp å¡ns.	charge	higher interest rates to</br></br>gage banking firm of Sonneh- Such a plan not only wmd-xampensate |or probable con-folic k-Goldman, said saving S1 lcrease money available inflation and loans, mutual saving* mortgages but would curt nÛÏins innÛÏuå¡n' banks, commercial banks anrtåÈl consumer spending, He said lenders are no . insurance companies ÛÏare nc tÛ÷ thereby restraining inflsk inger able to put up money attracting all the new moneå£ on,Û Sonnenblick said. on normal terms when the they need to finance the na- Moeller predicted the lencfluans are likely to be repaid .tionÛªs growing housing needs ÛªåÇrs will insist more often nexta ith inflation-cheapened dol-^ Sonnenblick blamed low inyear on ÛÏequity kickersÛ as dnrs. ^ terest rates at the thrift instipart of the cost of a loan. Sonnenblick urged Congress tutions for causing sophistic! i- Under such agreements, thd > provide some sort of induce-ted savers to put their monejt orrower must repay part ofiient to encourage pension in more profitable investt ie loan with stock, thus inf mds and other lenders to put i-ments.	s	iring the lender of part ofi loney into real estate without</br></br>Fing Committee to propose legr ;asonably well on income con-\islation to exempt from taxs jruction such as shopping cen-riation the first $1,000 in saving* srs and apartment houses but ^account interest income foil; impractical in the case of 'jeach family, thus encouraging ngle family houses.