Evening star., 1932-09-10
HOME LOAN BANKS
. RESULT SEEN GOOD
New President of Building
and Loan League Expects
More Confidence.

The opening in the near future o.
the Federal Home Loan Banks viii
Berve to further stimulate public con.
fidence. 1t is declared by Ward B
Whitlock, Springfield, Ill, president o.
the United States Building and Loar
League.
Mr.. Whitlock, installed as head oi
the body last Saturday, declared: "The
building and loan associations are goine
to make success of the new Fedora
Home Loan Bank System. That IS oul
big job this year and we are tackline
It with the combined vigor of ouI
associations.
The rise in business confidence is
largely due to the prompt manner in
which the Federal Board has gone about
setting up the system. With the Home
Loan Banks open. ref1nancing OF
mortgages. modernization of homes and
building of needed homes will begin
and confidence will be further stimulat-
ed In this field"
Hoover Is Praised.
The building and loan associations
are among the principal classes of in
stitutions which may make use of the
new home loan banks, discounting
4ilOA lSdSCo Oll at t1lCoC 4A1otAbu
tions so as to employ additional sums
in the home finance field, dealing with
individual home purchasers.
The delegates to the building and
loan convention, held at French Lick
Ind, paid tribute to President Hoover
for his act in first proposing the general
principles for the creation of the
Federal Home Loan Banks and in
urging congressional approval of the
legislation. The statement points out
that the President constantly reiterated
to legislative leaders the need for such
a system, thus placing behind the meas
ure the full force of that leadership
which only the Chief Executive of the
Nation can supply"
The statement expressed the appre-
citation of the league, an organization
of 2,700 kome-fina ncing institutions, to
President Hoover for his lasting con-
tribution to the advancement of thrift
and homecoming and the widening
of the usefulness and the strengthening
of the power Of true home financing
agencies of the country"
In the manner of selection of the
directors of the Home Loan Banks, the
most salient point is the provision that
9 out Of the IL for each bank must
have grown up" in the home financing
business. it is pointed out by Morton
Bodfish. member Of the Federal Home
Loan Bank Board. He declares that
for his part he will insist on rigorous
Interpretation of that part Of tie law.
Federal Board Names Two.
The law provides that 2 of the II
directors of each district bank shall
always be chosen by the Federal board,
thus giving an opportunity to bring into
the councils of this new system some
of the broad experience outside the
ome-flnancing business, Mr.. Bodfish
explained, "but remember that 9 out
of II Of those directors will be men
whose chief business in life is home
financing"
The Federal board under the act
is endowed with far-reaching powers.
This is important because many failures
of institutions in the past have been
due to the lack of authority at the
head of the system when an emergency
arose. This system has the authority
to pass on institutions which wish to
join. 1t is going to take in sound in
stitutions that are serving their COM
munities. never knew the Federal
Reserve System in any case to take