Evening star., 1932-09-02
HOME BANK PLANS
OUTLINED BY FORT
Hoover's Message to Con-
vention Pays Tribute to
Building League.
By the Associated Press.

BY the Associated Press.
FRENCH LICK. Ind, September a.
Delegates to the fortieth annual con-
vention of the United States Building
and Loan League today heard from
Franklin W. Fort, chairman, and other
members Of the Home Loan Bank board
their plans for operating the new
system.
The convention also received a mes
sage from President Hoover, in which
he said the Home Loan Bank system
is "a tribute to the fine underlying
theory and efficiency of management of
the building and loan associations Of
the United States"
Fort said the question Of whether
the board will name registrars in each
bank district for the taking Of subscrip-
tons ta its stock will likely be decided
when the board meets next Tuesday
in Washington.
Appointments Deferred.
The board chairman said no action
of directors for local banks and on
the leasing of bank quarters before
the stock subscriptions are started.
Suspension Of mortgage foreclosures
until the Home Loan Banks begin
operating was urged by Fort.
He said the II home loan banks
would begin to function about october
Is and that thereafter, mortgage
money will be available on sound loans
which we are getting ready to grant"
I'VE hope that every building and
loan association will suspend the fore
closure of mortgages, at least where
there is the slightest possibility of hope
for the mortgagor," he said.
U. S. Suspension Directed.
He added that Controller Pole of the
currency has directed a suspension of
foreclosures of mortgagers by closed ma
tional banks and that most of the State
operation on a 60-day moratorium
movement instituted by the board.
Fort told the league convention that
the home loan bank ''is the fulfillment
of long time dream of the President,
and that "well founded and well run, 1t
should last as long as our Nation Is a
democracy"
Fort also recommended to convention
members the formation in every State
Of building and loan committees anal
ogous to the business and industrial
committees that have been created In
each Federal Reserve district. He said
these would have as their purpose
putting the lending facilities of your
institutions at the service of distressed
mortgagors Immediately" and added:
Il can assure you that when those
committees are formed you will find
the utmost spirit of cooperation from
the Business and Industry Committee
in your Federal Reserve district"
Fort said assertions the Home Loan
System was IAN entrance of the Govern
ment into business and into socialism
would mot stand analysis
Socialism" he continued, mean.
the ownership of such institutions BY
the Government and their operation BY
the voters. The Home Loan Bank Sys.
tenn, properly constituted, developed a!
it should be developed, means the own
ership of the community by its oWr
savings institution. And the operation
| and control of these banks will rest ir
their future millions of shareholders
not by right of suffrage, but by righr
! of thrift"
Asks Support in Drive.
Fort said that with the establishment
of the districts and location of cities
| for the banks the next step was the
opening of subscription books for $134,.
000,0 900 in capital stock. He told the
/ delegates:
"I want here and now to plead witt
you for instant and aggressive suppor
of our stock subscription campaign IL
the next 80 days. Nothing Will do 81
much to start the banks of right a.
substantial initial subscriptions t.
| stock.
Your associations hold thousand
upon thousands of mortgages on proper
ties which are deterioratlng PHYSICAL!
! for the want of repair. You can fa
better afford to add an additional loaI
Of 81 900 on many a mortgage than t,
take over the property in its presen
condition and then make the re-
pairs.
municipalities are starved for tn,
want of taxes. The borrowers from
your institutions are permitting ia,
liens to accumulate, with penalties ant
heavy interest. Both in their interes
and your own those taxes should b,
generally advanced. II you advanc'
them the municipality can stop borrow
ing money. Nothing will d.
more to strengthen the value Of tn
property under your mortgage than L
strengthen the finances OF the munici
Ipality where it Is located"