New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-06-13
State Loan Associations
Report Gain of $4,OOO,OOO
League for Home Savings Never So Strong or Pros
perous the Total Assets of Its Members Aggre-
eating $685. 000-Many New Mort
cages Written and Withdrawals in
Year Promptly Met.

depositing their savings in our golfers.
THE total assets OF the associations
in New York State aggregate SSe,5OO,-
600, better showing than ever before
in our history, the local associations,
with but few exceptions, showing in
creases.
at is not an idle prophecy 70 saw
that within the next few years the
Empire State will assume the position
in the building and loan world that IL
holds in other fields of financial en-
deavor The mistakes and misfortunes
of the past teach US 2 lesson for the
future The abuses that our institu-
tions have been charged with have dis
appeared; those few national associa-
tions that still manage TO exist being
compelled by statute 70 conform with
the new order Of conditions.
1.-THE New York laws governing saw
ings and loan associations are models
which are being copied by other states,
as they represent the best thoughts OF
the active men in the movement The
necessary restrictions that apparently
curtail some Of our privileges may
seem an apparent hardship. but most
OF the associations have accustomed
themselves 70 their limitations.
Ambassador Herrick. close stu
dent of land credit systems. bestowed
the highest praise on our statute when
he said that the savings and loan assoc
Citations Of New York we're by 10 rem
dered automatically safe.
within the last year the Land Bank
Of the State of New York has been or
gained with q paid-in capital Of $780,
600, which was subscribed o. by forty
one savings and loan associations. It's
field is 10 assist the associations 20
finance themselves by furnishing what
might he called permanent capital for
a stated and definite period az the low
est interest rate prevailing IN the
money market. The first issue of itsf
bonds has been foated on the same
basis as those Of the City Of New York.
AT the outbreak Of the European
war in August the financial situation
over the whole world was disturbed.
and il was difficult 20 predict what the
outcome might be- Realizing the pos
sible danger Of a sudden call for funds.
appointed n committee consisting of
former President Hennessy. Howell,
Hutton. Skuse and Judge Durack, who,
with myself. advised with Superinten-
dent Richards as 20 the situation. The
result Of the deliberations OF this COM
mittee was made manifest in a letter
which the Superintendent OF Banks
sent TO all the savings and loan asso-
Citations of the state, suggesting that
they follow, if they deemed II neces-
sarv. the example Of the savings banks
by taking advantage Of the sixty-day
clause. While this letter was in the
nature of advice. 10 made every officer
realize that situation might arise
which would require prompt action.
"As president Of the league ! sent
a bulletin 10 the associations, whether
affiliated with the league or mot. ap-
prising them of conditions, and AZ the
same time called for assistance II any
association might require ~. To this
appeal for aid ! received a generous
response from all sections OF the state.
However. no contingency arose which
the associations could not handle them
selves, as Withdrawals were normal.
While savings banks were compelled 10
enforce the sixty-day clause, not one
Of our associations was forced 20 take
advantage Of the suggestion of the SUI
perintendent of Banks. All withdraw
ais were promptly met upon demand.
This again has proven that the per-
sOnal acquaintance which the officers
of our institutions have with their
UtWutin tNktNufin a commence lNdt
no other financial organization pos
sesses. During the yea. the Banking
Department was not called upon 20 adj
minister the affairs of a single asso-
citation.
Tine enc. .eucy revenue law enacted
by Congress specifically exempts the
shares Of building and loan associa-
tions from rs provisions. This eNemp-
ton was secured by the United States
League OF Building and Loan Associa-
tions, aided by the officers of the New
York State League. While we endeay-
ored to procure complete exemption
from all taxation IN the law. yet 10 was
felt that. as the greater part OF the
law expires by limitation with the cur
rent year, the burden could be easily
borne.
"Durin. the last year | have sent
letters 20 eighty-two associations not
affiliated with the league. In response
10 these letters, eight new associations
have joined"
In his address Register Hopper
pointed out the advantage % he Tor
rens system. especially 10 small land
owners, and the mistakes IN the New
York law.