Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1919-08-10
Federal Building and
Loan Bill

Omaha, Aug. 9.-To the Editor
Of The Bee: Hundreds of your
readers will be interested to know
what was done at the national con-
vention of the building and loan as
sociations. The paramount issue
was the tentative bill introduced in
congress providing for Federal
Building and Loan bank 1t was
prepared by special committee, of
which l was member.
The bill was the subject of long
debate, there being more or less
opposition by members, some of
whom did not understand its pro-
visions, but after the debate had
covered the ground thoroughly SEN
timent radically changed and the
vote of Endorsement stood l64 in
favor Of the bill and against We
had opposition in our state delega-
ton. which returned a divided vote
of two for the bill and three against.
1t will be remembered that the state
league in Omaha in May discussed
the bill thoroughly as to its main
principles, and decided neither to
indorse it nor disapprove it.
1t was gratifying to me to have
the convention vote to continue in
office the special committee which
drafted the bill and which will
work for it's enactment by both
houses of congress. 1t has bet
introduced by Senator Calder of
New York and referred to the sem
ate committee on banking. Con-
gresham Nolan of California intro
duced the bill in the house. Our
special committee expects to be
cited BY both the senate and the
house committees on banking to
participate in hearing on the pro-
visions of the hill which will give
to the home owner the same privil-
eyes enjoyed by the farmers through
the operation of the Federal Land
bank, in the sense that the securi-
lies of the loan and building associa-
lions that voluntary take member
ship in the bank may, to limited
extent, be hypothecated with the
government bank, which will in
turn issue debentures, and it is
thought that they will find a ready
market, in the big trust companies
of the country, thus raising funds to
meet the demand for money for
building homes all over the United
States
While in Nebraska we shall have
no occasion to avail ourselves of
the provisions of this law, owing to
the fact that all associations
throughout this section have plenty
of money for meeting all loan re-
quirements, yet in many sections of
the country the building and loan
associations are unable to supply
the demand for home loans To
meet this demand the bill was draft
ed by our committee.
Some associations not familiar
with the provisions of the bill are
apprehensive lest the law might at
feet the operations of the building
ing and loan associations of this
state. There is no provision in the
bill by which the federal govern
ment will have any supervision over
any member association. One of
the main principles involved in the
bill will be that of standardizing
building and loan methods in va
rious states, and it is readily adj
mitted by buildiIg and loan ex-
perts that the Nebrl! II law on the
subject is not surpassed by the la VS.
Of other states.
the Dill does not provide for an
expensive organization. On the con-
trary, the governing board in WASH
ington and the management of the
regional banks will be organized
along the simple lines of building
and loan associations throughout
she country - W. r. ADAIR.