Evening star., 1932-08-13
WATSON TO SPEAK
At LOAN SESSION
Majority Leader of Senate
and Representative Reilly
to Attend Convention.

Senator James E. Watson. majority
| leader of the Senate, and Representa-
| tive Reilly of Wisconsin, member Of the
| Banking and Currency Committee OF
the House, will be the principal speak
ers at the fortieth annual convention OF
the United States Building and Loan
League to be held at French Lick, Ind,
September /, and 3.
The two congressional leaders, who
actively sponsored the measure provid-
| ing for the creation of the new system
of home loan banks, enacted at the close
Of the past session of Congress, will ad-
dress the 1,500 building and loan dele
J gates at the convention on this SUBJ
ject.
Other features of the convention will
include divisional meetings in which
special consideration will be given to
appraising homes, advertising the build
ing and loan associations, accounting
practices, the attorneys place in the ac-
tivities of the association and the
changed aspects of State supervision.
Attended Hearings.
Since the building and loan associa-
tions will be the principal members OF
the new Federal home credit system,
now being set in motion with the ap-
pointment of the national governing
board, the home loan banks will receive
the chief consideration of the conven-
ton. it is announced by William E.
Best. Pittsburgh, president OF the
league.
Senator Watson and Representative
Reilly, during the extended hearings on
the measure prior to its passage, heard
the pros and cons Of argument on all
af he cvStor1 and thnrpf0re
will speak from an intimate knowledge
of the law; it is explained.
In addition to Mr.. Best, member
of the national board, other officials
appointed by President Hoover to direct
the operation Of the banks, are to be In
vited to address the building and loan
convention.
Senator Watson led the fight in the
Senate for a permanent new home
mortgage reserve system based on the
longtime credit. against counter pro-
posal to make it temporary measure
advanced by those who are not in SYM
pathy with the system.
Should Be Permanent
IT cannot bring myse,i to believe that
in the matter of protecting the Ameri-
can home and sustaining the American
home owners under these extreme con-
ditions we ought, by the very terms OF
this measure, to assert that 1t Is merely
a short term and ephemeral affair, "
said Senator Watson. II believe 1t ought
to be made permanent part of our
financial policy, just as the Federal Re-
serve System Is permanent part OF our
financial policy In one respect and per-
haps the Federal Farm Loan Board in
another respect"
Representative Reilly in the report of
the subcommittee of the House Banking
and Currency Committee, which strong
ly advocated the passage of the Federal
home loan bank bill, stressed the eco
nomic aspects Of the new system and
showed how the credit just made avail
able. by giving security to the home
owner would be one of the most impor-
tant factors in the systems general
business.
THE investment in the homes Of the
country is a significant and imposing
portion of our national wealth. Much Of
the decline in the values Of residential
real estate has been due to the lack
of credit during the last two years.
Home owners must have funds before
business can recover. The existence OF
home loan bank system will in the fu-
ture prevent recurrence Of present con-
ditions.'
Citing these statements Of Senator
Watson and Representative Reilly. Mr..
Best says that the United States League
convention this year will be centered
around q practical and enthusiastic ef-
fort to have the Federal home loan
bank system in operation as soon as
possible, SO that the stability of home
ownership will be enhanced and so that
t.,,il Inov, ace01fotSav1e xffIl
continue their part in adding to the
wealth of the Nation through an in
creased number of owner-occupied
homes