New-York tribune., 1922-06-25
100000 Are
Saving to Buy
Little Homes
u.,e $500. 100000 on
deposit With Saving and
loan Associations: Thrift
sy.iem Ownership Boon
Bv W. D. Carter

r-fSCfNif '''
S,ripgs and Locn Associations
s,,,u,s o. Federal government
,,ssn some decrease in the cost
,,.rSing materials. increased Ell
80, ~ labor though no decrease
.,,uy In wages. and more funds
Use because OF larger member.
-. 30 savings and loan associations
"rsbout ~ New York State. and par
A.'v within the metropolitan dis
-. srs loaring moro money on first
u...-,res % small home builders this
az thar az any time in the last few
rsrs ~ ...... -
= .ssoeiations or. as sometimes
- building and loan associations
"..y. no. been able IN the majority
,,.,,srccs 70 loan over so 70 60 per
~ .he total valuation Of house
,.5 70, on first mortgage. because Of
- Construction costs and the likely
.,.,,eiation Of property values. Now
.,,s-ss and loan associations are able
:. 'ssr from 55 10 65 per cent. and. in
..-s instances. even 20 per cent on
a., mortgages covering small houses
.,S near greater New York. In
..,,ss In the amounts Of first mort
az, hans made by savings and loan
.,,s,ia,ions IS general throughout he
..,., /, vas brought out AZ the recent
,,s., convention held az Lake Placid.
-, government. through Secretary
u.,y,r a. head Of the Department Of
c,1nerce and i's division OF build
=, and housing, financial. building
-,,,rials and labor interests. has
.,,ss,i,sd that in the spring Of 1922
-, iowes. peak-if one may speak Of a
"a pssk in small house building
,,,.s within the last few wears was
..,ehsd. and with II came the biggest
kidding boom IN the country's history.
Isfgf, increase IN construction costs
-, hosr noticeable over the last few
rorths. due 20 increased demands for
r,,srisls and labor. especially here in
New YORK. but thus far this increase
las not been sufficient 10 affect FIRST
mortgage money,
20 Per Cent Loans Allowed Here
With the reduction Of building costs
fret mortgages naturally became more
valuable and less speculative than at
,ry tine during recent years There
fofe the savings and loan associations.
g,v,rr.d and regulated az they are in
Yea York under the jurisdiction Of the
S.ate Superintendent Of Banks. were
abe 70 increase slightly first mortgage
bans
The New York State banking laws
allow savings and loan associations 70
lsro on first mortgage up 20 so per
cent o. an appraised valuation, but for
y,srs this maximum percentage was not
feasible because Of the uncertain con.
,;tlcns n the building and real estate
feds u is my purpose TO indicate 20
%, readers Of The Tribune Small
House Page" the stability and safety
tforded all who are prospective home
Builders II they desire TO take advan-
ugt o. the savings and loan method OF
rhsving home ownership.
Syings and loan associations are
efgsnized primarily for the purpose Of
ronoting home ownership among
r,isons Of moderate means. The as
sotistions do not build or buy homes.
srtng their moneys only on first
Mortgage 10 the person who is scquir-
.tg his or her house.
100000 Are Saving
Nationally more thar 100000 per
sons are enrolled in 5000 associations.
Their capital, represented by the saw
rs accumulated through small
weekly or monthly payments. exceeds
~ total amount the capital Of all the
national banks Of the country Re
cent statistics show that about So
50O000,0OO OF the savings Of these
members Is invested in small dwelling
house mortgages. More than 1000 600
American homes have been purchased
by individuals through this system.
In New York state there were 280
sssociatiors on December 81, 1921.
Their total reported resources were
S3l290 .09i. an increase Of $l5,490,4 ,492.
according 70 the annual report Of the
New York State Banking Department
prepared by Superintendent OF Banks
G,orgt v Mclaughlin.
Ire increased state membership in
uvirgs and loan associations last
year was 80.515. and 279,749 men and
women we're either building their
homes or saving money TO build
through the various New York State
associations. IL is interesting 10 note
nat the State Banking Department
reported the cost Of operating savings
sno loan associations for the benefit
o. nenbers was Ss.0S for each 81 900
N accumulated capital, or something
uhce' per cent.
Over one-half OF the assets Of as
soeltiors In New York State have
essn accumulated within those ssso-
cations operating in the metropolitan
oitiict. which embraces the FIVE bor-
osgts Of New York City. Westchester
''sniy and Long Island.
Io,sl assets Of the Metropolitan
Hague OF Savings and Loan Associa-
tohs exceed 10000 900. but the mem
e'rship is only slightly in excess Of
ohe-ihird % the state total, or s6,I3s
nsmbers last year. This Indicate.
"a, New York City is a stronghold OF
ne savings and loan association move
nsnt IN this state.
Easy 10 Join Association
li is easy 70 join a savings and loan
association Usually a dollar is SUI
'atnt 70 start with. Members Of an
association are Of two classes-in-
.eNors and borrowers. Investors are
uose who join an association 10 save:
Suaiiy With the ultimate objective OIL
',ning their own homes.
Ny first house was built with the
.e o. An association. Owning a lot
,,efth 81 800, the association lent me
1900 10 build my house. That was
t.riy years ago. in 1892. | paid the
interest and paid of the loan in
Monthly installments Of $40, IS more
nan the monthly rental value in those
Gays o. that house.
During the last few years the hous-
ag emergency has caused a rapid
fo~ih IN the associations. and they
ha's been unable 10 satisfy the de-