Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-02
LOAN AND BUILDING
ASSOCIATIONS GAIN
Prosperous Year Indicated in
Survey-GraduaI Growth
Shown in Council Report.

Secretary william S. Quinter of the
Building Association Council of the Dis
trict of Columbia has received re-
view of the year 1929, prepared by Sec
rotary H. F. CellariuS of the United
States Building and Loan League. The
report is based on facts obtained from
all corners of the United States and
shows year CT progress. The official
says. in part:
THE building and loan associations
Of the United States have for a num-
Der of years past been showing a most
remarkable and consistent increase in
assets. At the close of 1928 their in
vestments, largely mortgages on homes,
amounted to little over $4,000, GOO, 900,
one-half of which was accumulated dur
ing the preceding five years. This
large rate of increase will not, however,
be fully maintained for 1929 on account
of unusual conditions which developed
during the last half of the year.
THE prevailing abnormally high in
terest rates and the credit Stringency
prior to the stock market collapse, as
well as the speculative fever which ap-
peared to have seized a large portion
OF our population, and which caused
heavy Withdrawals of funds from build
ing and loan associations, restricted
their operations to a considerable ex-
tent. Receipts were not up to normal
and the associations had fewer funds
available for loans on mortgage secur-
ity to finance home construction or
home purchasing projects than they
have had for number of years past.
Notwithstanding these unfavorable fac
tors, however, the building and loan
associations will end the year by show
ing a fair-siZed increase in their total
resources.
Enormous Sums Invested.
Advance reports received from the
various States, giving carefully prepared
estimates of the total assets of these
associations on December 81, 1929, in
dictate that there are So, SOC, 900 900 in
vested in these associations In the United
States, which is an increase for the year
OF $3.50 ,O0O, 900, or about per cent The
estimated membership Is 10000. 900
members. which is just slight increase
over the number reported for 1923.
THE crash in the stock market, with
Its trail of losses in its wake, Is not
without some compromising features,
which will have salutary effect upon
building and loan associations in the
coming year. 1t will forcefully bring
home to their members and patrons,
who we're tempted to dabble in the mar
ket, that safety of their principal, with
fair return of interest or dividends, is
more important and more profitable in
the long run than speculative venture
IN stocks, however alluring, and they will
return to the safe and sane method of
again saving their surplus earnings in
building and loan associations or other
we'll established financial institutions.
During the year 1929 it is estimated
that the building associations of the
United States made mortgage loans to
the amount of 1850 900 900, which en-
abled over 100000 of their members to
enjoy the blessings of home C-'nersnip.
In 1928 the sum so invested. by them
amounted to $4,000, 0OO, OOO."
The consistent growth of these asso-
Citations during the past 20 years is well
shown by the following comparative
figures, by f1ve-year periods: