The New York herald., 1922-07-02
SAVINGS And LOAN
ASSOCIATIONS Do
RECORD BUSINESS
Assets and Number Of De-
positors at Highest in
Last Six Months.
APPLICATIONS POURING IN
Safety of Real Estate Mort
cages as Investments Is
Urged by Board.
THE assets and the number OF de-
positors OF savings and loan

THE assets and the number OF de-
positors of savings and loan
associations increased more in
the last six months than they did in
any previous year in their history,
according to Archibald w. McEwan.
secretary of the league of the associa-
tions. who bases his statement on in
terviews and correspondence with Off
GERS of such organizations throughout
the State.
THE associations are enjoying a
boom" he said yesterday. 'and are
swamped with applications for mort
cages on homes. They are conducting
a campaign for new depositors. as from
them practically all mortgage money
comes hard and fast rule to give
preference on mortgage applications to
men and women who have been saving
money through associations and thus
helping others to pay for their homes
has been laid down by those organiza-
tons I am always glad to answer
through the mails inquiries concerning
saving and home owning through our
institutions"
In a statement calling attention to
the safety of realty loans from the In
vestment standpoint the Real Estate
Board of New York compares real
estate mortgages with other forms of
securities.
The testimony taken recently before
the Committee on Ways and Means Of
the House OF Representatives at Wash.
ington and the Lockwood legislative
investigating committee in this State"
the statement says. shows conclusively
the value of mortgages on real property
as a safe and certain investment for
trust and other funds
AT Washington representatives OF
trust companies. insurance companies
and savings banks unanimously testi-
fled to the extremely low percentage Of
loss in such securities held by their
companies, while. on the other hand.
they admitted heavy losses in other
forms of securities.
The reason for this security in mort
gage loans is easily seen. Take. for in
stance. farm mortgages. The total
amount in value is s4.0l2, III .213. the
value OF the property mortgaged is
s13.772,72s,e10. The mortgages are only
80 per cent. of the value of the property.
| The mortgages against owned homes
and other forms of real estate through
out the United States represent in the
total a safe percentage of value.
Loans of trust funds can only be
made on a certain percentage Of the
value OF improved real estate, fixed by
expert appraisers, usually so per cent.
| and with the now almost universal
amortization feature the equity in
creases annually Loans on commercial
| buildings are equally safe and afford
the best form OF investment for those
who fear the risk OF speculative securi-
ties. In the testimony taken recently
by the Lockwood committee officials
| OF insurance companies admitted ex-
tremely heavy losses in stocks and
bonds. especially of industrials. and
scarcely any loss in the comparatively
small amount OF mortgages held by
them. The report of the Hughes COM
mittee was 70 the same effect
The board has been devoting a great
deal OF time through its committee on
! stock listing in trying TO devise a
method by which mortgages may be
made more available commercially.